Black & Decker Drops on Warning

Shares of Black & Decker (BDK) hit a 52-week low Friday after the company lowered its profit target because of a product recall and weak sales in North America. Excluding a $2.36/share favorable tax settlement, the tool maker said it would earn $1.03/share in the fourth quarter and $6.00/share for the year. The company's previous estimates were $1.55-$1.65/share for the quarter and $6.50-$6.60 for the year. The earnings target includes a $25 million cost from a recall of one the company's cordless drills, but excludes any potential patent recovery from a component supplier. "In addition, business conditions in North America have been worse than...anticipated," the company said. Black & Decker added it will report a low single-digit decrease in rate of sales, after forecasting a modest growth earlier. Shares of the company tumbled 6.6% to $74.87.

Sources: MarketWatch, Wall Street Journal

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