• Research Paper on:
    Black & Decker Financial Position

    Number of Pages: 3

     

    Summary of the research paper:

    A 3 page paper discussing Black & Decker's financial position during deep recession and its likely outlook for the future, as well as expected responses from Federal Reserve actions. China was expected to become the leading producer of power hand tools by 2009 even before the credit market meltdown of 2008; the US can expect high inflation following its ill-conceived stimulus plan. Black & Decker has a healthy cash reserve and respectable profitability in 2009, but it faces trying years in the future. Bibliography lists 5 sources.

    Name of Research Paper File: CC6_KSfinBlckDeck.rtf

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    Unformatted Sample Text from the Research Paper:
    Decker is a $6 billion company that has been planning for the expected downturn in the construction industry as well as a forecasted shift to China as the leading country  for manufacturing the types of hand tools that Black & Decker supplies. Despite slowing in the domestic housing market in 2007, the company was able to increase both revenues  and gross profit in 2007. It has not filed its annual report for 2008, but quarterly results through 2008 reveal the effects of continuing - but slight - decline.  Financial Position Black & Decker appears to have been taking industry forecasts quite seriously over the past few years; it appears to have  operated with an eye to the future and in the realization that construction eventually would take a downturn. It has a $277 million cash reserve and has been able  to maintain gross profit of 4.82% and operating profit at 7.83% over the past twelve months (Black & Decker Corp., 2009). Year-on-year revenue growth has declined by 16.6%, however.  Industry Forecasts "The Freedonia Group, Inc., a Cleveland-based industrial market research firm" (U.S. Power and Hand Tools Demand to Reach $15.5 Billion in  2009, 2005), released a Power & Hand Tools study in early 2005 concluding that "U.S. demand for power and hand tools is forecast to increase 3.8 percent annually (including price  increases) to $15.5 billion in 2009" (U.S. Power and Hand Tools, 2005). Another industry forecast made by Global Information, Inc. holds that demand  for power tools will increase "by as much as 6 percent annually through 2007, reaching sales volume of more than $27 billion" (No surprise, demand for tools climbing, 2005; p. 

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