Power tool company Stanley Black & Decker reported Wednesday that second-quarter earnings fell because of charges associated with its acquisition of Towson-based Black & Decker Corp. in March.
But the company said the integration of the two businesses remains on track to save $350 million in costs in three years, including $90 million this year. About $30 million of that amount was achieved by the second quarter.
"The integration remains first and foremost. It's something we're all spending a lot of time on," John F. Lundgren, Stanley president and CEO, said in a conference call with analysts. "Probably the highest-priority item, in addition to protecting our core business, remains the cost-synergy targets. We feel very good about what they are."
Stanley Works, based in New Britain, Conn., bought Black & Decker in a $4.5 billion deal that created the world's largest maker of hand and power tools. The combination put Stanley in charge and dissolved Black & Decker's Maryland headquarters. A combined power-tools divison will remain in Towson.
Stanley Black & Decker has said in the past it would achieve the savings by reducing corporate overhead, consolidation of business units, manufacturing and distribution, and purchasing.
When announcing the merger, the companies said they expected to trim about 4,000 employees from their worldwide work force of 38,000. In Maryland, where about 1,700 employees work at three facilities, about 250 corporate positions are expected eventually to be eliminated.
About 37 jobs were eliminated in Maryland in April, mostly in Towson but also at facilities in Hampstead and Hunt Valley. The eliminated jobs came from such departments as sales, general administrative and information technology. The company did not provide an update on layoffs Wednesday.
Stanley reported net income of $45.8 million, or 28 cents a share, for the second quarter. That was compared with $69.5 million, or 87 cents a share, for the same period a year ago.
Black & Decker products helped boost sales for the company. Revenue increased 157 percent to $2.37 billion because of Black & Decker products included in the portfolio.