Black & Decker Corp. / BDK
About Black & Decker Corp.
701 E. Joppa Rd., Towson, Md. 21286
www.bdk.com
| 410-716-3900
| Founded: 1910
Industry: Manufacturing | Category: Top Companies Headquartered in Maryland
The year 2005 was one of consolidation for Black & Decker, which marked record sales, earnings and free cash flow stemming from both internal growth and acquisitions from the previous year. Overall sales rose 21 percent to $6.52 billion, with two-thirds of the increase coming from recent acquisitions.
Black & Decker took advantage of the one-time tax break for profits from abroad by repatriating $888 million in foreign earnings. The company was also the target of a December 2005 lawsuit claiming that it had made improper contributions to the Mormon Church, an allegation Black & Decker denies.
After four straight years of earnings per share increases of 23 percent or more, management is predicting somewhat slower growth for 2006, particularly in the first half. But chief executive Nolan D. Archibald said in a conference call that the company is optimistic about a new line of cordless lithium-ion powered tools aimed at construction professionals that the company's Dewalt subsidiary will begin selling this spring. "We believe we have exciting growth opportunities to drive sales for years to come," Archibald said.
After making significant acquisitions in 2003 and 2004, Black & Decker did not embark on a major purchase in 2005, using its substantial free cash for a 33 percent increase in dividends and to repurchase 6.3 million shares, about 8 percent of the shares outstanding. But the company has not abandoned its strategy of buying complementary businesses, known as "bolt-on acquisitions." In March of this year, the firm announced it had spent $160 million to buy Vector Products Inc., a maker of portable power products such as battery chargers, jump-starters and spotlights with $150 million in sales in 2005. Archibald said in a statement that the company expected the acquisition to increase earnings per share by 10 to 15 cents in 2006.
Chairman and CEO: Nolan D. Archibald
2005 Financial Data
Revenues: $6,523,700,000 | Net Income: $543,900,000Asssets: $5,816,600,000 | Earnings Per Share: $6.69
Stockholder Equity: $1,523,600,000 | Annual Dividend: $1.12
Total employees: 27,200 | Local employees: 10
Did You Know
Black & Decker sells power tools, small appliances, hardware and home improvement products in more than 100 countries. It has manufacturing plants in 11 countries and markets its products under its own name and variety of brands. Among the best-known are Baldwin, Price Pfister, Dewalt and Kwikset. The company also makes and sells fastening and assembly systems to the automotive and industrial markets.
