RPT-UPDATE 2-Black & Decker profit drops, cuts forecast

Recasts first paragraph, adds quote, stock action) BOSTON, July 25 (Reuters) - Black & Decker Corp (BDK.N: ) reported an 18 percent drop in quarterly profit on Friday and cut its full-year forecast, warning that European demand is starting to slow and materials costs are rising quickly. The stock fell 2.2 percent in morning trade. The U.S. manufacturer has been battered by the severe U.S. housing slump, which has sliced demand for its power tools, locks and plumbing products. It now looks for full-year profit of $5.25 to $5.45 per share versus its April forecast of $5.25 to $5.65. Analysts, on average, expect $5.34 per share, according to Reuters Estimates. "The macro environment in the U.S. remains very weak, especially for our sectors," Michael Mangan, the chief financial officer, told investors on a conference call. "In... [read full story]