I ran across this interesting article today over at Bloomberg.com. Though the article’s about Black & Decker’s modified (downward) profit forecasts, there were a couple of other interesting bits as well. From the article:
- “Fourth quarter sales will probably fall 8 percent as semand for power saws and drills waned with an 81 percent decline in new-home sales this year through October.”
- “Retailers reduced inventories and brought fewer tools, creating ‘significant challenges’ in the first half of 2007, Black & Decker said. The company’s biggest buyer is Home Depot Inc., accounting for 21 percent of sales. Lowe’s Cos. is second, with 13 percent.”
- “Black & Decker depends on U.S. housing starts for 20 percent of its sales…”
Interesting stuff. From an “end user” perspective it seems that while there are fewer saws out, there are more drills on the market than ever before. Could this mark a swing to a different target audience for tool manufacturers in general?
Black & Decker Lower Profit Forecasts on Sales Drop [Bloomberg.com]