Shares of Black & Deckerundefined were surging Monday after the company said its second-quarter profit grew by nearly two-thirds and announced an acquisition to bolster its professional power tool offerings.
The Towson, Md.-based company said net income rose to $121.8 million, or $1.50 a share, from $74.7 million, or 97 cents a share, a year earlier. Sales rose 19% to $1.3 billion.
Analysts had forecast earnings of $1.26 on revenue of $1.24 billion, according to Thomson First Call estimates.
The company attributed its strong quarter to sales in the power tools and accessories segment, with double-digit growth in Asia and in U.S. sales of the company's Dewalt brand.
Furthermore, the company noted that the recent acquisitions of Baldwin Hardware, Weiser Lock and MasterFix had boosted its hardware and home division, as well as its fastening and assembly systems segment.
Looking ahead, Black & Decker said it expects a double-digit sales growth rate including currency and acquisitions for the third quarter and full year. The company said operating margins should continue to improve, but not as dramatically as in the first half of the year.
The company expects third-quarter earnings from continuing operations of $1.25 to $1.30, in line with analysts' estimates of $1.28.
On the basis of strong second-quarter results, the company boosted its full-year earnings estimate to a range of $5.05 to $5.15 a share.
Black & Decker also said it has agreed to purchase the Tools Group unit of
for about $775 million in cash. The Tools Group had 2003 sales of $1.08 billion and operating profit of $82 million. Black & Decker estimates that this addition will add 50 cents a share to earnings in 2005 and $1 a share by 2007
Shares of Black & Decker were recently up $7.52, or 12.5%, to $67.84.