Cost-savings pay off for Black & Decker

Manufacturing News, Source : TheManufacturer.com
Published : 24 Jul 2002 21:40

Black & Decker Corp. surprised industry analysts by reporting higher than expected earnings for the second quarter.

Net income increased to $66.1 million, or 81 cents a share, up from $41.7 million, or 51 cents a share. Analysts had estimated earnings of at 63 cents, according to the Thomson First Call research firm.

The success is largely due to Black & Decker’s recent cost reduction and market share improvements, stated Eric Bosshard, an analyst from Midwest Research. As a result of the cost saving initiatives, Black & Decker expects to save $ 60 million in 2003. It has recently completed product transfers within its manufacturing system from the US to Mexico and from Mexico to China. A new plant in the Czech Republic also began manufacturing lawn and garden products.

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