Toolmaker sets layoffs

“Their costs continue to go up and they haven't really been able to pass that on”

Black & Decker Corp. said yesterday that it will lay off 700 employees and close a U.S. plant and office after its first-quarter earnings were hammered by the prolonged housing slump and subprime mortgage crisis. The Towson-based manufacturer of power tools and hardware said earnings plummeted 38 percent and that it only expected conditions to worsen, prompting it to lower its forecast for the year. Until now, the company has managed to largely ride out the housing downturn by offsetting lower U.S. sales with double-digit growth in Asia, Europe and Latin America. It has also been helped by effects of positive exchange rates. But those factors weren't enough to help earnings for the three months that ended March 31. Read more