TOWSON, Md., Jan. 30 /PRNewswire-FirstCall/ -- The Black & Decker
Corporation (NYSE: BDK) today announced that net earnings from continuing
operations for the fourth quarter of 2006 were $95.7 million or $1.38 per
diluted share, versus $99.8 million or $1.26 per diluted share for the
fourth quarter of 2005. Excluding incremental tax expense to repatriate
foreign earnings under the American Jobs Creation Act of 2004 (AJCA), net
earnings from continuing operations for the fourth quarter of 2005 were
$1.90 per diluted share.
For the full year 2006, net earnings from continuing operations were
$486.1 million or $6.55 per diluted share, versus $532.2 million or $6.54
per diluted share for 2005. Excluding the AJCA incremental tax expense and
a favorable insurance settlement, net earnings from continuing operations
for the full year 2005 were $6.73 per diluted share. The Corporation
generated a record $533 million of free cash flow, up from $515 million in
2005.
Sales from continuing operations decreased 7% for the quarter to $1.6
billion. The acquisition of Vector Products, Inc. contributed 2% to sales
in the quarter, and foreign currency translation had a positive 2% impact.
For the full year, sales decreased 1% to $6.4 billion, including a 2%
contribution from the acquisition.
Nolan D. Archibald, Chairman and Chief Executive Officer, commented,
"As we announced in December, Black & Decker faced a weak demand
environment and inventory reductions by customers during the fourth
quarter. While demand remained sluggish, order rates stabilized somewhat at
the end of the quarter, and we slightly exceeded our revised forecast for
sales and earnings per share. We are very pleased to report a fifth
straight year of record free cash flow, which demonstrates our continuing
focus on working capital and disciplined capital spending.
"Sales in the Power Tools and Accessories segment decreased 10% for the
quarter, due to an organic decline of more than 20% in the U.S. In the U.S.
Industrial Products Group, sales decreased significantly across product
lines and channels, reflecting weakness in market demand and customer
inventory reductions. The U.S. Consumer Products Group faced similar
pressures and reported a sales decline, despite incremental Vector sales
and the success of new products such as the AutoWrench(TM). The European
business, however, had organic sales growth in the mid single-digits,
driven by strong professional tool sales and a rebound in the U.K. In Latin
America, sales increased 10%, with continuing success in both industrial
and consumer products. Operating margin for the Power Tools and Accessories
segment decreased to 9.6% due to lower sales and production volumes,
commodity inflation and charges related to cost-reduction initiatives.
"For the full year, sales in the Power Tools and Accessories segment
decreased 2%, including a 4% organic decline. The U.S. Industrial Products
Group had reported a slight sales increase through nine months, but the
fourth-quarter slowdown resulted in a mid single-digit rate of decline for
the year. Sales in the U.S. Consumer Products Group were only modestly
below the prior-year level, as the addition of Vector nearly offset a large
decrease in pressure washers and a decline in power tools. Our
international businesses performed very well, posting a mid single-digit
organic sales growth rate in Europe and a double-digit rate in Latin
America. Full-year operating margin for the segment decreased to 12.0%,
primarily due to lower volume in the second half and ongoing commodity
inflation.
"Sales in the Hardware and Home Improvement segment decreased 2% for
the quarter. Lockset sales decreased at a mid single-digit rate, as the
slowing residential construction market and inventory reductions at key
customers outweighed strong sell-through at retail. The Price Pfister
faucet business grew sales at a mid single-digit rate, driven by gains in
the wholesale channel. Operating margin in the Hardware and Home
Improvement segment decreased to 10.7% for the quarter, primarily due to
commodity cost inflation.
"For the full year, sales in the Hardware and Home Improvement segment
decreased 2%. Lockset sales were roughly flat, and faucet sales decreased
at a mid single-digit rate after rising dramatically in 2005. Operating
margin decreased to 13.5%, as price increases and cost reduction actions
could not fully offset significant commodity inflation.
"Sales in the Fastening and Assembly Systems segment decreased 2% for
the quarter, as slower sales in North America overshadowed outstanding
growth in Asia. Operating margin for the segment decreased to 14.0% in the
fourth quarter. For the full year, both sales and operating profit
increased 1%, despite significant production cuts by North American
automotive customers.
"Our free cash flow of $533 million is an outstanding achievement in
light of the challenging external environment. Excluding an income tax
payment in 2006 related to repatriation of foreign earnings under the AJCA
and a large insurance settlement received in 2005, free cash flow increased
approximately $95 million versus the prior year. Despite a sharp reduction
in orders during the quarter, inventory declined sequentially and
year-on-year, excluding the Vector acquisition. We repurchased 1.6 million
shares in the fourth quarter, bringing the full-year total to 11.8 million
shares. Even after buying back 15% of our outstanding shares in 2006, our
balance sheet remains in very good shape.
"Looking ahead, we expect that key sectors of the U.S. economy will
remain slow. While order rates have stabilized somewhat, we do not
anticipate a significant lift from re-stocking by retailers. We will
continue to improve the cost structure across the company, but our
operating margin will likely remain under pressure due to higher raw
material prices. Therefore, we expect that sales and earnings will decrease
in the first half of 2007, with the decline in EPS mitigated by a lower
share count. Because we plan to improve upon our fourth-quarter results, we
anticipate that full-year sales and EPS could approach the 2006 levels. We
expect diluted EPS in the range of $1.25-to-$1.30 for the first quarter and
$6.25-to-$6.55 for the full year. We also expect to convert at least 90% of
full-year net earnings to free cash flow.
"Black & Decker faced a difficult business environment in 2006,
particularly in the fourth quarter. Despite these challenges, the
structural changes we have made helped us deliver record free cash flow and
limit the impact on EPS far better than in the last downturn. We continued
to deliver meaningful innovation to our end-users and remain excited about
the potential for our power tool portfolios, new automotive and electronic
products for consumers, and breakthrough lockset technology. While focusing
on long-term growth, we will continue taking cost and inventory actions to
address weak demand. By building on our leading brands, reducing costs and
using our strong free cash flow wisely, we believe we can weather this
slowdown effectively and deliver outstanding returns to our shareholders."
The Corporation will hold a conference call today at 10:00 a.m., E.T.,
to discuss fourth-quarter and full-year results and the outlook for 2007.
Investors can listen to the conference call by visiting http://www.bdk.com
and clicking on the icon labeled "Live Webcast." Listeners should log-in at
least ten minutes prior to the beginning of the event to ensure timely
access. A replay of the call will be available at http://www.bdk.com.
This release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. By their nature, all forward-looking statements
involve risks and uncertainties. For a more detailed discussion of the
risks and uncertainties that may affect Black & Decker's operating and
financial results and its ability to achieve the financial objectives
discussed in this press release, interested parties should review the "Risk
Factors" sections in Black & Decker's reports filed with the Securities and
Exchange Commission, including the Annual Report on Form 10-K for the
fiscal year ended December 31, 2005.
This release contains non-GAAP financial measures within the meaning of
Regulation G promulgated by the Securities and Exchange Commission.
Included with this release is a reconciliation of the differences between
these non- GAAP financial measures with the most directly comparable
financial measures calculated in accordance with GAAP.
Black & Decker is a leading global manufacturer and marketer of power
tools and accessories, hardware and home improvement products, and
technology-based fastening systems.
THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(Dollars in Millions Except Per Share Amounts)
Three Months Ended
----------------------------------------
December 31, 2006 December 31, 2005
------------------ ------------------
SALES $ 1,611.3 $ 1,730.0
Cost of goods sold 1,074.6 1,110.0
Selling, general, and
administrative expenses 383.3 400.4
------------------ ------------------
OPERATING INCOME 153.4 219.6
Interest expense (net of
interest income) 21.9 13.8
Other expense .4 1.3
------------------ ------------------
EARNINGS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 131.1 204.5
Income taxes 35.4 104.7
------------------ ------------------
NET EARNINGS FROM CONTINUING
OPERATIONS 95.7 99.8
DISCONTINUED OPERATIONS (NET OF
INCOME TAXES):
Loss of discontinued operations - (1.1)
Loss on sale of discontinued
operations - (.1)
------------------ ------------------
NET LOSS FROM
DISCONTINUED OPERATIONS - (1.2)
------------------ ------------------
NET EARNINGS $ 95.7 $ 98.6
================== ==================
BASIC EARNINGS PER COMMON SHARE
Continuing operations $ 1.42 $ 1.29
Discontinued operations - (.02)
------------------ ------------------
NET EARNINGS PER
COMMON SHARE - BASIC $ 1.42 $ 1.27
================== ==================
Shares Used in Computing Basic
Earnings Per Share (in Millions) 67.4 77.4
================== ==================
DILUTED EARNINGS PER COMMON SHARE
Continuing operations $ 1.38 $ 1.26
Discontinued operations - (.02)
------------------ ------------------
NET EARNINGS PER COMMON SHARE -
ASSUMING DILUTION $ 1.38 $ 1.24
================== ==================
Shares Used in Computing Diluted
Earnings Per Share (in Millions) 69.5 79.5
================== ==================
THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(Dollars in Millions Except Per Share Amounts)
Year Ended
----------------------------------------
December 31, 2006 December 31, 2005
------------------ ------------------
SALES $ 6,447.3 $ 6,523.7
Cost of goods sold 4,205.8 4,206.6
Selling, general, and
administrative expenses 1,501.1 1,522.2
------------------ ------------------
OPERATING INCOME 740.4 794.9
Interest expense (net of
interest income) 73.8 45.4
Other expense (income) 2.2 (51.6)
------------------ ------------------
EARNINGS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 664.4 801.1
Income taxes 178.3 268.9
------------------ ------------------
NET EARNINGS FROM CONTINUING
OPERATIONS 486.1 532.2
Loss on sale of discontinued
operations (net of income taxes) - (.1)
------------------ ------------------
NET EARNINGS $ 486.1 $ 532.1
================== ==================
BASIC EARNINGS PER COMMON SHARE
Continuing operations $ 6.74 $ 6.72
Discontinued operations - -
------------------ ------------------
NET EARNINGS PER
COMMON SHARE - BASIC $ 6.74 $ 6.72
================== ==================
Shares Used in Computing Basic
Earnings Per Share (in Millions) 72.1 79.2
================== ==================
DILUTED EARNINGS PER COMMON SHARE
Continuing operations $ 6.55 $ 6.54
Discontinued operations - -
------------------ ------------------
NET EARNINGS PER COMMON SHARE -
ASSUMING DILUTION $ 6.55 $ 6.54
================== ==================
Shares Used in Computing Diluted
Earnings Per Share (in Millions) 74.2 81.4
================== ==================
THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Millions of Dollars)
December 31, 2006 December 31, 2005
------------------ ------------------
ASSETS
Cash and cash equivalents $ 233.3 $ 967.6
Trade receivables 1,149.6 1,130.6
Inventories 1,063.5 1,049.1
Other current assets 257.0 200.1
------------------ ------------------
TOTAL CURRENT ASSETS 2,703.4 3,347.4
------------------ ------------------
PROPERTY, PLANT, AND EQUIPMENT 622.2 668.8
GOODWILL 1,195.6 1,115.7
OTHER ASSETS 726.5 710.5
------------------ ------------------
$ 5,247.7 $ 5,842.4
================== ==================
LIABILITIES AND
STOCKHOLDERS' EQUITY
Short-term borrowings $ 258.9 $ 566.9
Current maturities
of long-term debt 150.2 155.3
Trade accounts payable 458.5 466.8
Other current liabilities 912.0 1,061.2
------------------ ------------------
TOTAL CURRENT LIABILITIES 1,779.6 2,250.2
------------------ ------------------
LONG-TERM DEBT 1,170.3 1,030.3
DEFERRED INCOME TAXES 197.6 188.5
POSTRETIREMENT BENEFITS 482.4 402.0
OTHER LONG-TERM LIABILITIES 454.2 408.2
STOCKHOLDERS' EQUITY 1,163.6 1,563.2
------------------ ------------------
$ 5,247.7 $ 5,842.4
================== ==================
THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION ABOUT BUSINESS SEGMENTS
(Millions of Dollars)
Reportable Business Segments
---------------------------------------------------
Power Hardware Fastening
Three Months Ended Tools & & Home & Assembly
December 31, 2006 Accessories Improvement Systems Total
--------------------------------------------------------------------------
Sales to unaffiliated
customers $ 1,184.9 $ 241.3 $ 163.8 $ 1,590.0
Segment profit (loss)
(for Consolidated,
operating income) 113.2 25.8 23.0 162.0
Depreciation and
amortization 27.9 4.6 4.6 37.1
Capital expenditures 14.6 4.5 7.7 26.8
Three Months Ended
December 31, 2005
--------------------------------------------------------------------------
Sales to unaffiliated
customers $ 1,322.1 $ 247.0 $ 167.4 $ 1,736.5
Segment profit (loss)
(for Consolidated,
operating income) 172.3 33.0 27.6 232.9
Depreciation and
amortization 24.1 7.7 4.7 36.5
Capital expenditures 22.1 .7 6.3 29.1
Year Ended
December 31, 2006
--------------------------------------------------------------------------
Sales to unaffiliated
customers $ 4,735.6 $ 1,003.4 $ 666.5 $ 6,405.5
Segment profit (loss)
(for Consolidated,
operating income) 570.0 135.4 95.8 801.2
Depreciation and
amortization 109.8 22.9 18.8 151.5
Capital expenditures 71.7 14.0 16.6 102.3
Year Ended
December 31, 2005
--------------------------------------------------------------------------
Sales to unaffiliated
customers $ 4,821.4 $ 1,019.8 $ 662.2 $ 6,503.4
Segment profit (loss)
(for Consolidated,
operating income) 634.9 143.9 94.6 873.4
Depreciation
and amortization 102.4 25.6 18.7 146.7
Capital expenditures 80.7 12.9 15.7 109.3
Currency Corporate,
Three Months Ended Translation Adjustments,
December 31, 2006 Adjustments & Eliminations Consolidated
--------------------------------------------------------------------------
Sales to unaffiliated customers $ 21.3 $ - $ 1,611.3
Segment profit (loss)
(for Consolidated,
operating income) 2.0 (10.6) 153.4
Depreciation and amortization .6 .5 38.2
Capital expenditures .4 1.2 28.4
Three Months Ended
December 31, 2005
--------------------------------------------------------------------------
Sales to unaffiliated customers $ (6.5) $ - $ 1,730.0
Segment profit (loss)
(for Consolidated,
operating income) (1.0) (12.3) 219.6
Depreciation and amortization (.2) 1.2 37.5
Capital expenditures (.2) 1.1 30.0
Year Ended
December 31, 2006
--------------------------------------------------------------------------
Sales to unaffiliated customers $ 41.8 $ - $ 6,447.3
Segment profit (loss)
(for Consolidated,
operating income) 4.3 (65.1) 740.4
Depreciation and amortization 1.2 2.2 154.9
Capital expenditures .9 1.4 104.6
Year Ended
December 31, 2005
--------------------------------------------------------------------------
Sales to unaffiliated customers $ 20.3 $ - $ 6,523.7
Segment profit (loss)
(for Consolidated,
operating income) 2.7 (81.2) 794.9
Depreciation and amortization .4 3.5 150.6
Capital expenditures - 1.8 111.1
The reconciliation of segment profit to the Corporation's earnings from
continuing operations before income taxes for each period, in millions of
dollars, is as follows:
Three Months Ended Year Ended
--------------------------------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2006 2005 2006 2005
--------------------------------------------------------------------------
Segment profit for total reportable
business segments $162.0 $232.9 $801.2 $873.4
Items excluded from segment profit:
Adjustment of budgeted foreign
exchange rates to actual rates 2.0 (1.0) 4.3 2.7
Depreciation of Corporate property (.2) (.3) (.9) (1.0)
Adjustment to businesses'
postretirement benefit
expenses booked in consolidation (6.3) (2.7) (25.2) (13.8)
Other adjustments booked in
consolidation directly related
to reportable business segments (1.5) (1.2) (.2) 3.3
Amounts allocated to businesses in
arriving at segment profit in excess
of (less than) Corporate center
operating expenses, eliminations,
and other amounts identified above (2.6) (8.1) (38.8) (69.7)
--------------------------------------------------------------------------
Operating income 153.4 219.6 740.4 794.9
Interest expense, net of interest
income 21.9 13.8 73.8 45.4
Other expense (income) .4 1.3 2.2 (51.6)
--------------------------------------------------------------------------
Earnings from continuing
operations before income taxes $131.1 $204.5 $664.4 $801.1
==========================================================================
BASIS OF PRESENTATION:
Adoption of New Accounting Standard for Share-Based Payment:
------------------------------------------------------------
As more fully described in the Corporation's Current Report on Form 8-K
dated November 9, 2006, the Corporation was required to adopt Statement of
Financial Accounting Standards No. 123 (revised 2004) (SFAS No. 123R),
Share-Based Payment, effective January 1, 2006. SFAS No. 123R requires the
Corporation to expense share-based payments, including employee stock
options, based on their fair value. SFAS No. 123R permits public companies
to adopt its requirements using one of two methods. As previously
disclosed, the Corporation anticipated adopting SFAS No. 123R under the
modified retrospective method. The modified retrospective method permits
entities to restate all prior periods presented based on the amounts
previously recognized under SFAS No. 123, Accounting for Stock-Based
Compensation, for purposes of pro forma disclosures. As permitted by SFAS
No. 123, the Corporation previously accounted for share-based payments to
employees under Accounting Principles Board Opinion No. 25, Accounting for
Stock Issued to Employees, using the intrinsic value method and, as such,
generally recognized no compensation costs for employee stock options.
The Corporation adopted SFAS No. 123R effective January 1, 2006, using
the modified retrospective method of adoption. All prior periods were
adjusted to give effect to the fair-value-based method of accounting for
awards granted on or after January 1, 1995. Accordingly, the Consolidated
Statement of Earnings and Supplemental Information about Business Segments
for the three months and year ended December 31, 2005, and the Consolidated
Balance Sheet as of December 31, 2005, have been adjusted to reflect the
adoption of SFAS No. 123R for share-based payments under the modified
retrospective method.
SFAS No. 123R also requires the benefits of tax deductions in excess of
recognized compensation cost to be reported as a financing cash flow,
rather than as an operating cash flow as previously presented. Upon
adoption in 2006, the Corporation adjusted its prior Consolidated
Statements of Cash Flows to reflect this classification. The Corporation's
computation of free cash flow, a non-GAAP financial measure within the
meaning of Regulation G promulgated by the Securities and Exchange
Commission, for the year ended December 31, 2005, has been adjusted to
reflect this adjustment to "Cash flow from operating activities."
Business Segments:
------------------
The Corporation operates in three reportable business segments: Power
Tools and Accessories, Hardware and Home Improvement, and Fastening and
Assembly Systems. The Power Tools and Accessories segment has worldwide
responsibility for the manufacture and sale of consumer and professional
power tools and accessories, electric cleaning and lighting products, and
lawn and garden tools, as well as for product service. In addition, the
Power Tools and Accessories segment has responsibility for the sale of
security hardware to customers in Mexico, Central America, the Caribbean,
and South America; for the sale of plumbing products to customers outside
the United States and Canada; and for sales of household products. On March
1, 2006, the Corporation acquired Vector Products, Inc. This acquired
business is included in the Power Tools and Accessories segment. The
Hardware and Home Improvement segment has worldwide responsibility for the
manufacture and sale of security hardware (except for the sale of security
hardware in Mexico, Central America, the Caribbean, and South America). The
Hardware and Home Improvement segment also has responsibility for the
manufacture of plumbing products and for the sale of plumbing products to
customers in the United States and Canada. The
Fastening and Assembly Systems segment has worldwide responsibility for
the manufacture and sale of fastening and assembly systems.
In November 2005, the Corporation sold its DOM security hardware
businesses. The divested businesses are treated as discontinued operations
in the Corporation's consolidated financial statements. Sales, segment
profit, depreciation and amortization, and capital expenditures set forth
in the preceding tables exclude the results of the discontinued operations.
The profitability measure employed by the Corporation and its chief
operating decision maker for making decisions about allocating resources to
segments and assessing segment performance is segment profit (for the
Corporation on a consolidated basis, operating income). In general,
segments follow the same accounting policies as those described in Note 1
of Notes to Consolidated Financial Statements included in Exhibit 99.2 of
the Corporation's Report on Form 8-K dated November 9, 2006, except with
respect to foreign currency translation and except as further indicated
below. The financial statements of a segment's operating units located
outside of the United States, except those units operating in highly
inflationary economies, are generally measured using the local currency as
the functional currency. For these units located outside of the United
States, segment assets and elements of segment profit are translated using
budgeted rates of exchange. Budgeted rates of exchange are established
annually and, once established, all prior period segment data is restated
to reflect the current year's budgeted rates of exchange. The amounts
included in the preceding table under the captions "Reportable Business
Segments" and "Corporate, Adjustments, & Eliminations" are reflected at the
Corporation's budgeted rates of exchange for 2006. The amounts included in
the preceding table under the caption "Currency Translation Adjustments"
represent the difference between consolidated amounts determined using
those budgeted rates of exchange and those determined based upon the rates
of exchange applicable under accounting principles generally accepted in
the United States.
Segment profit excludes interest income and expense, non-operating
income and expense, adjustments to eliminate intercompany profit in
inventory, and income tax expense. In determining segment profit, expenses
relating to pension and other postretirement benefits are based solely upon
estimated service costs. Corporate expenses, as well as certain centrally
managed expenses, including expenses related to share-based compensation,
are allocated to each reportable segment based upon budgeted amounts. While
sales and transfers between segments are accounted for at cost plus a
reasonable profit, the effects of intersegment sales are excluded from the
computation of segment profit. Intercompany profit in inventory is excluded
from segment assets and is recognized as a reduction of cost of goods sold
by the selling segment when the related inventory is sold to an
unaffiliated customer. Because the Corporation compensates the management
of its various businesses on, among other factors, segment profit, the
Corporation may elect to record certain segment-related expense items of an
unusual or non-recurring nature in consolidation rather than reflect such
items in segment profit. In addition, certain segment-related items of
income or expense may be recorded in consolidation in one period and
transferred to the various segments in a later period.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G
DISCLOSURE:
To supplement its consolidated financial statements presented in
accordance with accounting principles generally accepted in the United
States (GAAP), the Corporation provides additional measures of operating
results, net earnings, and earnings per share adjusted to exclude certain
costs, expenses, and gains and losses. Also, in addition to measuring its
cash flow generation and usage based upon operating, investing and
financial activities classifications established under GAAP, the
Corporation also measures its free cash flow. The Corporation believes that
these non-GAAP financial measures are appropriate to enhance understanding
of its past performance as well as prospects for its future performance.
This press release contains non-GAAP financial measures within the
meaning of Regulation G promulgated by the Securities and Exchange
Commission. A reconciliation of the differences between these non-GAAP
financial measures with the most directly comparable financial measures
calculated in accordance with GAAP follows.
Diluted earnings per share from continuing operations:
------------------------------------------------------
The calculation of diluted earnings per share from continuing
operations, excluding a favorable $55 million pre-tax insurance settlement
for the year ended December 31, 2005, and the incremental tax expense to
repatriate foreign earnings under the American Jobs Creation Act of 2004
(AJCA) for the three months and year ended December 31, 2005 follows
(dollars in millions except per share amounts):
Three Months Year
Ended Ended
December 31, December 31,
2005 2005
------- -------
Net earnings from continuing operations $99.8 $532.2
Excluding:
Insurance settlement, net of tax - (35.8)
Incremental tax effect of AJCA 51.2 51.2
------- -------
Net earnings from continuing operations,
excluding the insurance settlement and
incremental tax effect of AJCA $151.0 $547.6
======= =======
Diluted earnings per common share from
continuing operations $1.26 $6.54
Excluding:
Insurance settlement, net of tax,
per common share - assuming dilution - (.44)
Incremental tax effect of AJCA
per common share - assuming dilution .64 .63
------- -------
Diluted earnings per common share from
continuing operations, excluding the
insurance settlement and incremental
tax effect of AJCA, per common share $1.90 $6.73
======= =======
Shares used in computing diluted earnings
per share (in millions) 79.5 81.4
======= =======
Free cash flow:
---------------
The calculation of free cash flow, which is defined by the Corporation
as cash flow from operating activities, less capital expenditures, plus
proceeds
from the disposal of assets (excluding proceeds from business sales),
for the years ended December 31, 2006 and 2005, follows (dollars in
millions):
Year Ended
December 31, December 31,
2006 2005
------- -------
Cash flow from operating activities $622.7 $614.1
Capital expenditures (104.6) (111.5)
Proceeds from disposals of assets 14.7 12.7
------- -------
Free cash flow $532.8 $515.3
======= =======
Cash flow from operating activities, capital expenditures and proceeds
from the disposal of assets for the year ended December 31, 2005, include
amounts associated with discontinued operations.
This press release includes a statement that free cash flow for the
year ended December 31, 2006 as compared to the year ended December 31,
2005, excluding an income tax payment in 2006 associated with repatriating
foreign earnings under the AJCA and a large insurance settlement received
in 2005, increased by approximately $95 million. That increase excludes tax
payments that occurred in 2006 associated with repatriating foreign
earnings under the AJCA and the after-tax effects of the $55 million of
proceeds from the insurance settlement that occurred in the first quarter
of 2005.
SOURCE The Black & Decker Corporation
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CONTACT:
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Relations and Treasurer, +1-410-716-3979 or Roger A. Young, Vice
President, Investor and Media Relations, +1-410-716-3979, both of
Black & Decker
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