Black & Decker cuts fourth-quarter outlook
The Towson, Md.-based power tool company reported that business conditions in North America have been worse than expected and that based on this, the company expects to report a low single-digit rate of sales decrease. The company’s previous guidance was for modest organic sales growth.
The company also announced its intention to recall certain DeWalt XRP cordless drills manufactured during the past 18 months. They will incur a pre-tax charge of approximately $25 million in the fourth quarter. The company said no injuries have been reported in relation to this recall.
Additionally hampering results, Black & Decker has reached a settlement with the United States government over income tax litigation for $50 million. The company announced previously that if the IRS won its case, it would have cost the company approximately $180 million.
The company will release fourth-quarter results in January.