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Black & Decker Q1 2008 Earnings Call Transcript

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2008-04-25 14:56:07.0

Tags: Black & Decker Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Michael Rehaut.

Analyst for Michael Rehaut - J.P. Morgan Securities

Hi, this is Jen [Consoly] on the line for Mike. My first question, last quarter you had mentioned that maybe the VPX line came in a little bit below your expectations and I know with the Dewalt 18 volt lithium ion line, you were trying to recoup some share losses from earlier in 2007, so I was wondering if you could give us an update on how the repositioning of those products was progressing this quarter, and if you can give any color as to type of volume of sales and if it met your expectations.

Michael D. Mangan

We certainly don’t give product line volumes but VPX, in the product category there certainly was a disappointment for us during the fourth quarter. We are working on some repositioning actions for that product category and VPX will I think be a smaller part of our future going forward. In large part, on the consumer or high end DIY, low end light contractor market, we are looking at the Porter-Cable offering, which will come out later this year to augment our lithium ion strategy in and around that market segment.

The Dewalt, on the Dewalt side, we had the challenge in the fourth quarter from the XRP recall. That is now in large part behind us and is back in the market and we have good availability now there of product, and we continue to roll out our lithium ion product across channels, as well as across geographies, so that includes not only the 36-volt product that came out about a year ago but our new introductions of 18-volt and 28-volt, and that product is meeting expectations.

Analyst for Michael Rehaut - J.P. Morgan Securities

Okay, great, thanks. And as part of your guidance, think last quarter you had mentioned that you expected pricing to have a roughly neutral impact and it had a neutral impact this quarter. Can you maybe talk about because your raw materials headwind is a little bit higher now, what you are expecting price to do in 2008? And also I think last quarter, you kind of walked through some of your macro assumptions underlying your sales growth guidance, so if you could give us a sense of how those have maybe changed as well, that would be really helpful.

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