TOWSON, Md.—Black & Decker Corp. will cut about 700 jobs, or about 3 percent of its work force, and close a plant in Arkansas in the wake of a disappointing quarterly earnings report.
The Towson-based toolmaker made the announcement Thursday after reporting that first-quarter earnings were down 37.6 percent from a year earlier, citing the slumping housing market and the subprime mortgage crisis.
"The U.S. housing downturn and related credit tightening have sharply lowered demand for tools, locksets and faucets," Chief Financial Officer Michael D. Managan said during a conference call with analysts.
The company said it will cut 250 administrative jobs and 450 at its plants, but didn't specify where they are.
Black & Decker is closing its pressure washer plant in Decatur, Ark., which has about 80 employees. An office in Florida that the company acquired in 2006 when it purchased Vector Products will also be shuttered.
Black & Decker employs about 25,000 people worldwide.
