This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Black & Decker. (BDK: chart) on January 28, 2008.

Management:

- Investor Relations: Mark Rothleitner
- Chairman, President and CEO: Nolan D. Archibald
- CFO: Mike Mangan

Key Investors Issues

Full Year Highlights:

- Net earnings were $518.1 million or $7.85 per diluted share, versus $486.1 million or $6.55 per diluted share for 2006.
- Sales increased 2% to $6.6 billion as organic volume decreased 1%, price was flat, and foreign exchange added 3%.
- The company repurchased 5.4 million shares of stock, helping to reduce average diluted shares by 11%.

Fourth Quarter Highlights

Net earnings rose 96% to $187.4 million or $2.94 per share, from $95.7 million or $1.38 per share in 2006, including the favorable $153.4 million effect of a previously announced tax settlement.

- Income was also impacted by a $31.7 million pre-tax charge for an environmental remediation matter, and a $19.0 million pre-tax restructuring charge
- U.S. housing starts were down 25% for the year, significantly worse than we had expected a year ago and commodity inflation was also more severe, coming in $60 million worse than initial estimates.
- Despite the adverse macro conditions, international operations had an extremely strong year as all businesses outside North America posted outstanding sales growth combined with strong operating margins.
- In addition, the firm generated a record $623 million in free cash flow and used that case effectively for share repurchases at attractive prices.

Sales increased 3% from $1.6 billion to $1.7 billion, though organic volume was flat, price was negative 1%, and foreign exchange contributed 4%.

- It is estimated that 15% to 20% of sales were tied to new U.S. housing starts, therefore, the housing downturn had a 4 or 5 point impact on sales.
- In addition, housing and the related credit market disruption had a negative affect on remodelling and consumer spending.
- Operating margin was 6.8% excluding the restructuring charge and environmental expense well below the prior year and the December product recall accounted for 120 basis points of the decline.
- Component costs rose significantly, driven by commodities such as nickel in batteries as well as the increase in China''s currency and the new Chinese VAT rebate policy.

SG&A percentage also increased due to lower sales volume and spending to stimulate sales.

- By continuing to manage capital expenditures and working capital effectively, the firm generated $623 million of free cash flow for the year versus $533 million in 2006.
- The Corporation repurchased 5.4 million shares of its stock in 2007 as well as an additional 2.0 million shares in early 2008.

Business Segment Highlights:

- Power Tools and Accessories worldwide sales decreased 2% as customers dramatically reduced inventory levels.
- The consistent strength of our international businesses offset most but not all of the domestic weakness.

- U.S. Industrial Products sales decreased low single digits as the weak residential construction market was a major factor since homeowners were cautious about remodelling projects, hurting sales at the home centers.
- Sell-through in this channel deteriorated after stabilizing in recent quarters.
- Sale end results varied somewhat across channels, as some customers ordered to achieve rebate levels while others managed inventory tightly.
- In terms of product categories, Woodworking had the steepest decline and the XRP recall had a negative impact on the Construction category, which otherwise performed well given the housing slowdown.
- The Accessories and Equipment categories were positives, posting sales growth in a tough environment.

- U.S. Consumer Products saw a double-digit sales decline as it was a difficult holiday season for many retailers and consumer manufacturers.
- The Vector, Automotive and Electronic business had fewer new products than last year, and sales were down significantly.
- The firm had some successful new products, including the Gecko Grip Level and a fairly strong second season for the Autowrench and Pivot Vac, though the VPX Cordless line did not meet expectations.

- Hardware and Home Improvement sales decreased 4% and while new products continue to do well, the housing impact on the lockset business more than offset this.
- The U.S. lockset business, primarily under the Quick Set brand, saw a high single digit sales decline.
- Quick Set continues to have success with the launch of SmartKey.

In the new construction channel, where the firm has not yet launched SmartKey, there was a decline consistent with the drop in housing starts.

- The Price Pfister Plumbing business posted sales growth for the fifth straight quarter, a significant accomplishment in today''s housing market.
- Operating margin declined to 9.6% driven by lower volume in the U.S. lock business.