Black & Decker Corp., coming out of a year of restructuring, yesterday reported a huge increase in profits.
The Towson-based tool and appliance company said it had profits of $55.6 million (95 cents a share) in the year that ended Sept. 28, up from $6.3 million (11 cents) a year ago. Last year's figures included a one-time loss of $21.2 million because of the early retirement of debt.
Revenue rose to $1.9 billion from $1.8 billion.
Nolan D. Archibald, chairman and president of Black & Decker, attributed the company's strong performance in part to last year's "cut and build" strategy, in which the company discontinued or deemphasized a number of unprofitable products, cut costs, improved customer service and introduced new products.
"We are going to be the best to do business with," Archibald told a meeting of securities analysts in New York last week. "We can compete with anyone in the world."
"This program, together with related overhead and expense reductions, is contributing significantly to our increased profitability," Archibald said in a statement yesterday.
He said the company is now in a "favorable position to react quickly to any slowing in retail activity that may follow from the recent turmoil in world financial markets."
Archibald said the company has diversified beyond its basic businesses by making a strong entry into the market for power-tool accessories, such as drills and cutting bits. That market is 20 percent or 30 percent larger than the overall power tool market, according to analysts.
In an interview yesterday, Archibald called the accessories market "virtually recession-proof."
The company said its fourth-quarter earnings were $14.9 million (26 cents), compared with a net loss of $16.8 million (29 cents) last year. The company had $502.1 million in revenue in the quarter, up 15 percent from $437.8 million in the same period last year.
C3 Inc. of Herndon announced its most profitable quarter since 1983: A profit of $2.5 million (25 cents) for the second quarter that ended Sept. 30, compared with $4,000 (zero cents) for the same period last year. Revenue for the quarter was $24.3 million, down slightly from last year's second-quarter revenue of $25.2 million.
For the six-month period that ended Sept. 30., C3 earned $4.8 million (48 cents) on revenue of $48.8 million, up significantly from the first six months of last year when the firm earned $522,000 (5 cents) on revenue of $40 million.
C3 assembles computer systems and makes computer products used primarily by the federal government.
Group 1 Software of Greenbelt said it earned $404,000 (12 cents) during its second quarter, which ended Sept. 30. That is more than triple the $129,000 (4 cents) the company earned during the same period last year. Revenue also was up significantly, to $2.5 million from $1.4 million during the second quarter of 1986.
For the six-month period that ended Sept. 30, Group 1 said it earned $860,000 (26 cents) on $5.2 million in revenue, compared to $344,000 (11 cents) on $3.3 million in revenue for the same period last year.
Group 1 makes computer software used by direct-mail companies.
END NOTESGenex Corp., the Gaithersburg biotechnology company, reported a third-quarter profit of $1.6 million (12 cents) for the third quarter. A year ago, the company lost $1 million (8 cents) in the quarter. The figures include a one-time gain stemming from a previously announced plant sale and the settlement of litigation over a contract to make NutraSweet-brand aspartame. The sweetener's maker, G.D. Searle & Co., ended the contract prematurely, triggering the legal dispute. Without the nonrecurring items, Genex suffered a net loss of $1.9 million for the quarter.
Revenue fell in the third quarter to $400,000 from $1.1 million in the same period last year.
Genex said it lost $1.7 million (13 cents) in the first nine months of the year, compared with a $3.4 million (19 cents) loss in the year-ago period. Without the nonrecurring gains, the company lost $5.2 million in the first nine months. Revenue for the nine-month period fell to $1.1 million from $2.8 million last year.
The company attributed the larger operating losses and reduced revenue to lower revenue from technology services and higher legal expenses. The drop in technology-services revenue is in keeping with Genex's shift of emphasis from marketing of research contract work to direct marketing of Genex products.