UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
ACT OF 1934
For the quarterly period ended               March 30, 2003
                               -------------------------------------------------
                                       or
[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR 15 (d)  OF THE  SECURITIES
EXCHANGE ACT OF 1934
For the transition period from                     to
                               -------------------    --------------------------

Commission File Number:                          1-1553
                        --------------------------------------------------------


                         THE BLACK & DECKER CORPORATION
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           Maryland                                      52-0248090
- --------------------------------------------------------------------------------
(State or other jurisdiction                (I.R.S. Employer Identification No.)
of incorporation or organization)

701 East Joppa Road             Towson, Maryland                    21286
- --------------------------------------------------------------------------------
(Address of principal executive offices)                         (Zip Code)

                                 (410) 716-3900
- --------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
- --------------------------------------------------------------------------------
(Former  name,  former  address,  and former  fiscal year, if changed since last
report.)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.  X  YES       NO
                                  -----    ------

The  number  of  shares  of  Common  Stock  outstanding  as of April  25,  2003:
77,595,093
- ----------

The exhibit  index as required by item 601(a) of  Regulation  S-K is included in
this report.


                                      -2-

                         THE BLACK & DECKER CORPORATION

                                INDEX - FORM 10-Q

                                 March 30, 2003

                                                                            Page

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

    Consolidated Statement of Earnings (Unaudited)
       For the Three Months Ended March 30, 2003 and March 31, 2002            3

    Consolidated Balance Sheet
       March 30, 2003 (Unaudited) and December 31, 2002                        4

    Consolidated Statement of Stockholders' Equity (Unaudited)
       For the Three Months Ended March 30, 2003 and March 31, 2002            5

    Consolidated Statement of Cash Flows (Unaudited)
       For the Three Months Ended March 30, 2003 and March 31, 2002            6

    Notes to Consolidated Financial Statements (Unaudited)                     7

Item 2. Management's Discussion and Analysis of Financial Condition and
         Results of Operations                                                13

Item 3. Quantitative and Qualitative Disclosures about Market Risk            20

Item 4. Controls and Procedures                                               20

PART II - OTHER INFORMATION

Item 1. Legal Proceedings                                                     21

Item 4. Submission of Matters to a Vote of Security Holders                   22

Item 6. Exhibits and Reports on Form 8-K                                      23

SIGNATURES                                                                    24

CERTIFICATIONS                                                                25


                                      -3-

PART I - FINANCIAL INFORMATION


ITEM 1.    FINANCIAL STATEMENTS


CONSOLIDATED STATEMENT OF EARNINGS (Unaudited)
The Black & Decker Corporation and Subsidiaries
(Dollars in Millions Except Per Share Amounts)

- --------------------------------------------------------------------------------
                                                        Three Months Ended
                                                 March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Sales                                                    $968.2           $951.7
   Cost of goods sold                                     624.7            644.8
   Selling, general, and administrative expenses          270.2            244.7
- --------------------------------------------------------------------------------
Operating Income                                           73.3             62.2
   Interest expense (net of interest income)               12.1             15.8
   Other expense                                            1.8              1.2
- --------------------------------------------------------------------------------
Earnings Before Income Taxes                               59.4             45.2
   Income taxes                                            16.0             12.2
- --------------------------------------------------------------------------------
Net Earnings                                             $ 43.4           $ 33.0
================================================================================



Net Earnings Per Common Share -- Basic                   $  .55           $  .41
================================================================================
Shares Used in Computing Basic
   Earnings Per Share (in Millions)                        78.3             80.1
================================================================================

Net Earnings Per Common Share --
   Assuming Dilution                                     $  .55           $  .41
================================================================================
Shares Used in Computing Diluted
   Earnings Per Share (in Millions)                        78.5             80.6
================================================================================

Dividends Per Common Share                               $  .12           $  .12
================================================================================

See Notes to Consolidated Financial Statements (Unaudited).


                                      -4-

CONSOLIDATED BALANCE SHEET
The Black & Decker Corporation and Subsidiaries
(Dollars in Millions Except Per Share Amount)

- --------------------------------------------------------------------------------
                                             March 30, 2003
                                                (Unaudited)   December 31, 2002
- --------------------------------------------------------------------------------
Assets
Cash and cash equivalents                          $  286.7            $  517.1
Trade receivables                                     747.0               729.0
Inventories                                           813.9               748.9
Other current assets                                  209.3               198.9
- --------------------------------------------------------------------------------
   Total Current Assets                             2,056.9             2,193.9
- --------------------------------------------------------------------------------
Property, Plant, and Equipment                        648.9               655.9
Goodwill                                              734.9               729.1
Other Assets                                          548.5               551.6
- --------------------------------------------------------------------------------
                                                   $3,989.2            $4,130.5
================================================================================

Liabilities and Stockholders' Equity
Short-term borrowings                              $    5.9            $    4.6
Current maturities of long-term debt                  309.9               312.0
Trade accounts payable                                366.4               343.2
Other accrued liabilities                             673.3               793.6
- --------------------------------------------------------------------------------
   Total Current Liabilities                        1,355.5             1,453.4
- --------------------------------------------------------------------------------
Long-Term Debt                                        924.5               927.6
Deferred Income Taxes                                 211.5               211.3
Postretirement Benefits                               411.8               409.0
Other Long-Term Liabilities                           528.5               529.6
Stockholders' Equity
Common stock, par value $.50 per share                 38.8                39.8
Capital in excess of par value                        473.7               550.1
Retained earnings                                     558.4               524.3
Accumulated other comprehensive income (loss)        (513.5)             (514.6)
- --------------------------------------------------------------------------------
   Total Stockholders' Equity                         557.4               599.6
- --------------------------------------------------------------------------------
                                                   $3,989.2            $4,130.5
================================================================================

See Notes to Consolidated Financial Statements (Unaudited).


                                      -5-

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited)
The Black & Decker Corporation and Subsidiaries
(Dollars in Millions Except Per Share Data)



- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Accumulated
                                                   Outstanding             Capital in                   Other Com-            Total
                                                        Common      Par     Excess of    Retained       prehensive    Stockholders'
                                                        Shares    Value     Par Value    Earnings    Income (Loss)           Equity
- ------------------------------------------------------------------------------------------------------------------------------------

                                                                                                           
Balance at December 31, 2001                        79,829,641    $39.9        $566.6      $333.2          $(188.7)          $751.0
Comprehensive income:
   Net earnings                                             --       --            --        33.0               --             33.0
   Net gain on derivative
     instruments (net of tax)                               --       --            --          --               .2               .2
   Foreign currency translation
     adjustments, less effect of
     hedging activities (net of tax)                        --       --            --          --            (19.9)           (19.9)
- ------------------------------------------------------------------------------------------------------------------------------------
Comprehensive income                                        --       --            --        33.0            (19.7)            13.3
- ------------------------------------------------------------------------------------------------------------------------------------
Cash dividends ($.12 per share)                             --       --            --        (9.6)              --             (9.6)
Common stock issued under
   employee benefit plans                              586,854       .3          18.5          --               --             18.8
- ------------------------------------------------------------------------------------------------------------------------------------
Balance at March 31, 2002                           80,416,495    $40.2        $585.1      $356.6          $(208.4)          $773.5
====================================================================================================================================

Balance at December 31, 2002                        79,604,786    $39.8        $550.1      $524.3          $(514.6)          $599.6
Comprehensive income:
   Net earnings                                             --       --            --        43.4               --             43.4
   Net loss on derivative
     instruments (net of tax)                               --       --            --          --              (.2)             (.2)
   Foreign currency translation
     adjustments, less effect of
     hedging activities (net of tax)                        --       --            --          --              1.3              1.3
- ------------------------------------------------------------------------------------------------------------------------------------
Comprehensive income                                        --       --            --        43.4              1.1             44.5
- ------------------------------------------------------------------------------------------------------------------------------------
Cash dividends ($.12 per share)                             --       --            --        (9.3)              --             (9.3)
Purchase and retirement of
   common stock                                     (2,011,570)    (1.0)        (76.5)         --               --            (77.5)
Common stock issued under
   employee benefit plans                                1,377       --            .1          --               --               .1
- ------------------------------------------------------------------------------------------------------------------------------------
Balance at March 30, 2003                           77,594,593    $38.8        $473.7      $558.4          $(513.5)          $557.4
====================================================================================================================================


See Notes to Consolidated Financial Statements (Unaudited).


                                      -6-

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
The Black & Decker Corporation and Subsidiaries
(Dollars in Millions)

- --------------------------------------------------------------------------------
                                                       Three Months Ended
                                                March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Operating Activities
Net earnings                                           $  43.4           $ 33.0
Adjustments to reconcile net earnings to cash
   flow from operating activities:
   Non-cash charges and credits:
     Depreciation and amortization                        36.5             34.2
     Other                                                 1.8              1.4
   Changes in selected working capital items:
     Trade receivables                                   (11.2)           (24.4)
     Inventories                                         (58.4)             6.0
     Trade accounts payable                               21.2             31.2
   Restructuring spending                                (15.7)            (7.5)
   Other assets and liabilities                         (138.0)           (11.4)
- --------------------------------------------------------------------------------
   Cash Flow From Operating Activities                  (120.4)            62.5
- --------------------------------------------------------------------------------
Investing Activities
Proceeds from disposal of assets                            .2              2.3
Capital expenditures                                     (26.4)           (22.1)
- --------------------------------------------------------------------------------
   Cash Flow From Investing Activities                   (26.2)           (19.8)
- --------------------------------------------------------------------------------
   Cash Flow Before Financing Activities                (146.6)            42.7
Financing Activities
Net increase (decrease) in short-term borrowings           1.3              (.3)
Payments on long-term debt                                 (.9)           (30.5)
Purchase of common stock                                 (77.5)               -
Issuance of common stock                                     -             14.3
Cash dividends                                            (9.3)            (9.6)
- --------------------------------------------------------------------------------
   Cash Flow From Financing Activities                   (86.4)           (26.1)
Effect of exchange rate changes on cash                    2.6              (.9)
- --------------------------------------------------------------------------------
(Decrease) Increase In Cash And Cash Equivalents        (230.4)            15.7
Cash and cash equivalents at beginning of period         517.1            244.5
- --------------------------------------------------------------------------------
Cash And Cash Equivalents At End Of Period             $ 286.7           $260.2
================================================================================

See Notes to Consolidated Financial Statements (Unaudited).


                                      -7-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
The Black & Decker Corporation and Subsidiaries


NOTE 1: BASIS OF PRESENTATION
The  accompanying  unaudited  consolidated  financial  statements of The Black &
Decker Corporation  (collectively  with its subsidiaries,  the Corporation) have
been  prepared  in  accordance  with the  instructions  to Form  10-Q and do not
include  all  the  information  and  notes  required  by  accounting  principles
generally  accepted in the United States for complete financial  statements.  In
the opinion of  management,  the  unaudited  consolidated  financial  statements
include  all  adjustments,   consisting  only  of  normal  recurring   accruals,
considered  necessary for a fair presentation of the financial  position and the
results of operations.
     Operating results for the three-month  period ended March 30, 2003, are not
necessarily  indicative  of the results  that may be expected  for a full fiscal
year. For further  information,  refer to the consolidated  financial statements
and notes included in the Corporation's  Annual Report on Form 10-K for the year
ended December 31, 2002.
     Certain  amounts  presented for the three months ended March 31, 2002, have
been reclassified to conform to the 2003 presentation.

NOTE 2: INVENTORIES
The  classification  of  inventories  at the end of each period,  in millions of
dollars, was as follows:

- --------------------------------------------------------------------------------
                                             March 30, 2003   December 31, 2002
- --------------------------------------------------------------------------------
FIFO cost
   Raw materials and work-in-process                 $190.1              $186.1
   Finished products                                  613.2               553.9
- --------------------------------------------------------------------------------
                                                      803.3               740.0
FIFO cost less than LIFO inventory value               10.6                 8.9
- --------------------------------------------------------------------------------
                                                     $813.9              $748.9
================================================================================
     Inventories  are stated at the lower of cost or market.  The cost of United
States  inventories is based primarily on the last-in,  first-out (LIFO) method;
all other inventories are based on the first-in, first-out (FIFO) method.

NOTE 3: SHORT-TERM BORROWINGS
In April  2002,  the  Corporation  replaced  an expiring  $400  million  364-day
unsecured  revolving  credit  facility  with a $250  million  364-day  unsecured
revolving credit facility (the Credit  Facility).  The Credit Facility  provided
for annual  renewals upon request by the Corporation and approval by the lending
banks.  In April 2003,  the  Corporation  elected not to request  renewal of the
Credit Facility based upon its anticipated short-term financing needs. The terms
of the  Corporation's  $500 million  commercial  paper  program and $1.0 billion
unsecured  revolving credit facility are more fully disclosed in Note 5 of Notes
to Consolidated  Financial  Statements  included in Item 8 of the  Corporation's
Annual Report on Form 10-K for the year ended December 31, 2002.
     While no amounts were outstanding under either the commercial paper program
or the Corporation's unsecured revolving credit facilities at March 30, 2003, or
March 31, 2002,


                                      -8-

average borrowings  outstanding under these arrangements during the quarter were
$403.1 million and $490.7 million, respectively.

NOTE 4: LONG-TERM DEBT
The Corporation's long-term debt and portfolio of interest rate swap instruments
are more fully  disclosed  in Notes 6 and 7 of Notes to  Consolidated  Financial
Statements  included in Item 8 of the  Corporation's  Annual Report on Form 10-K
for the year ended December 31, 2002. On April 1, 2003, the  Corporation  repaid
$309.5  million of 7.50% notes.  Also on April 1, 2003,  $125  million  notional
amount of fixed-to-variable interest rate swaps expired.
     Indebtedness of subsidiaries of the Corporation in the aggregate  principal
amounts of $307.4 million and $306.9  million were included in the  Consolidated
Balance  Sheet at March 30,  2003,  and  December  31,  2002,  respectively,  in
short-term borrowings, current maturities of long-term debt, and long-term debt.

NOTE 5: INTEREST EXPENSE (NET OF INTEREST INCOME)
Interest  expense  (net of  interest  income)  for each  period,  in millions of
dollars, was as follows:

- --------------------------------------------------------------------------------
                                                       Three Months Ended
                                                March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Interest expense                                         $18.5            $21.7
Interest (income)                                         (6.4)            (5.9)
- --------------------------------------------------------------------------------
                                                         $12.1            $15.8
================================================================================

NOTE 6: BUSINESS SEGMENTS
The following  table  provides  selected  financial  data for the  Corporation's
business segments (in millions of dollars):



- ------------------------------------------------------------------------------------------------------------------------------------
                                                 Reportable Business Segments
                                       ----------------------------------------------
                                             Power      Hardware    Fastening              Currency       Corporate,
                                           Tools &        & Home   & Assembly           Translation     Adjustments,
Three Months Ended March 30, 2003      Accessories   Improvement      Systems   Total   Adjustments   & Eliminations   Consolidated
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        
Sales to unaffiliated customers             $647.1        $172.6       $129.2  $948.9        $ 19.3           $    -         $968.2
Segment profit (loss) (for
     Consolidated, operating income)          57.7          15.0         18.4    91.1           2.2            (20.0)          73.3
Depreciation and amortization                 19.8           8.1          3.7    31.6            .5              4.4           36.5
Capital expenditures                          14.9           7.7          3.5    26.1            .1               .2           26.4

Three Months Ended March 31, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Sales to unaffiliated customers             $652.0        $201.0       $125.9  $978.9        $(27.2)          $    -         $951.7
Segment profit (loss) (for
     Consolidated, operating income)          39.1          15.6         16.5    71.2          (2.0)            (7.0)          62.2
Depreciation and amortization                 21.7           9.4          3.6    34.7           (.8)              .3           34.2
Capital expenditures                          15.2           3.4          3.6    22.2           (.3)              .2           22.1


     The Corporation operates in three reportable business segments: Power Tools
and  Accessories,  Hardware and Home  Improvement,  and  Fastening  and Assembly
Systems.  The Power Tools and Accessories  segment has worldwide  responsibility
for the  manufacture  and sale of  consumer  and  professional  power  tools and
accessories,  electric  cleaning and lighting  products,  and electric  lawn and
garden tools, as well as for product service.  In addition,  the Power Tools and
Accessories  segment has  responsibility  for the sale of  security  hardware to
customers in Mexico, Central


                                      -9-

America, the Caribbean,  and South America; for the sale of plumbing products to
customers  outside  the United  States and  Canada;  and for sales of  household
products. The Hardware and Home Improvement segment has worldwide responsibility
for the  manufacture  and  sale of  security  hardware  (except  for the sale of
security hardware in Mexico, Central America, the Caribbean, and South America).
It also has  responsibility for the manufacture of plumbing products and for the
sale of plumbing  products to  customers  in the United  States and Canada.  The
Fastening  and Assembly  Systems  segment has worldwide  responsibility  for the
manufacture and sale of fastening and assembly systems.
     The  Corporation  assesses  the  performance  of  its  reportable  business
segments based upon a number of factors,  including  segment profit. In general,
segments  follow the same  accounting  policies as those  described in Note 1 of
Notes  to  Consolidated   Financial   Statements  included  in  Item  8  of  the
Corporation's  Annual Report on Form 10-K for the year ended  December 31, 2002,
except  with  respect  to  foreign  currency  translation  and except as further
indicated below. The financial statements of a segment's operating units located
outside  of  the  United  States,   except  those  units   operating  in  highly
inflationary  economies,  are generally measured using the local currency as the
functional  currency.  For these  units  located  outside of the United  States,
segment  assets and elements of segment  profit are  translated  using  budgeted
rates of exchange. Budgeted rates of exchange are established annually and, once
established,  all prior  period  segment data is restated to reflect the current
year's budgeted rates of exchange.  The amounts  included in the preceding table
under the captions "Reportable Business Segments" and "Corporate, Adjustments, &
Eliminations" are reflected at the Corporation's  budgeted rates of exchange for
2003. The amounts  included in the preceding  table under the caption  "Currency
Translation  Adjustments"  represent the difference between consolidated amounts
determined  using those  budgeted rates of exchange and those  determined  based
upon the rates of exchange  applicable  under  accounting  principles  generally
accepted in the United States.
     Segment profit excludes interest income and expense,  non-operating  income
and expense,  adjustments  to eliminate  intercompany  profit in inventory,  and
income tax expense. In addition,  segment profit excludes restructuring and exit
costs.  In determining  segment profit,  expenses  relating to pension and other
postretirement benefits are based solely upon estimated service costs. Corporate
expenses,  as well as certain centrally managed expenses,  are allocated to each
reportable  segment  based upon  budgeted  amounts.  While  sales and  transfers
between segments are accounted for at cost plus a reasonable profit, the effects
of  intersegment  sales are excluded  from the  computation  of segment  profit.
Intercompany  profit  in  inventory  is  excluded  from  segment  assets  and is
recognized as a reduction of cost of goods sold by the selling  segment when the
related inventory is sold to an unaffiliated  customer.  Because the Corporation
compensates  the  management of its various  businesses on, among other factors,
segment  profit,  the  Corporation  may elect to record certain  segment-related
expense items of an unusual or non-recurring nature in consolidation rather than
reflect such items in segment profit. In addition, certain segment-related items
of  income or  expense  may be  recorded  in  consolidation  in one  period  and
transferred to the various segments in a later period.


                                      -10-

     The  reconciliation of segment profit to the Corporation's  earnings before
income taxes, in millions of dollars, is as follows:

- --------------------------------------------------------------------------------
                                                       Three Months Ended
                                                March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Segment profit for total
   reportable business segments                         $ 91.1           $ 71.2
Items excluded from segment profit:
   Adjustment of budgeted foreign exchange
     rates to actual rates                                 2.2             (2.0)
   Depreciation of Corporate property                      (.3)             (.3)
   Adjustment to businesses' postretirement
     benefit expenses booked in consolidation              3.6             10.3
   Other adjustments booked in consolidation
     directly related to reportable business
     segments                                            (10.0)            (4.7)
Amounts allocated to businesses in arriving
   at segment profit in excess of (less
   than) Corporate center operating
   expenses, eliminations, and other
   amounts identified above                              (13.3)           (12.3)
- --------------------------------------------------------------------------------
   Operating income                                       73.3             62.2
Interest expense, net of interest income                  12.1             15.8
Other expense                                              1.8              1.2
- --------------------------------------------------------------------------------
   Earnings before income taxes                         $ 59.4           $ 45.2
================================================================================

NOTE 7: EARNINGS PER SHARE
The  computations of basic and diluted earnings per share for each period are as
follows:

- --------------------------------------------------------------------------------
                                                       Three Months Ended
(Amounts in Millions Except Per Share Data)     March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Numerator:
   Net earnings                                          $43.4            $33.0
================================================================================
Denominator:
   Denominator for basic earnings per share --
     weighted-average shares                              78.3             80.1

   Employee stock options and stock issuable
     under employee benefit plans                           .2               .5
- --------------------------------------------------------------------------------
   Denominator for diluted earnings per share --
     adjusted weighted-average shares
     and assumed conversions                              78.5             80.6
================================================================================
Basic earnings per share                                 $ .55            $ .41
================================================================================
Diluted earnings per share                               $ .55            $ .41
================================================================================
     As of March 30, 2003, options to purchase  approximately 8.1 million shares
of  common  stock,  with a  weighted-average  exercise  price  of  $46.14,  were
outstanding,  but were not included in the  computation of diluted  earnings per
share   because  the  effect  would  be   anti-dilutive.   These


                                      -11-

options were  anti-dilutive  because the related exercise price was greater than
the average market price of the common shares during the quarter.

NOTE 8: STOCK-BASED COMPENSATION
As more fully disclosed in Note 14 of Notes to Consolidated Financial Statements
included in Item 8 of the Corporation's  Annual Report on Form 10-K for the year
ended  December  31,  2002,  the  Corporation  has elected to follow  Accounting
Principles Board Opinion No. 25,  Accounting for Stock Issued to Employees,  and
related  interpretations  in accounting  for its  stock-based  compensation.  In
addition,   the  Corporation   provides  pro  forma  disclosure  of  stock-based
compensation expense, as measured under the fair value requirements of Statement
of Financial  Accounting  Standards  (SFAS) No. 123,  Accounting for Stock-Based
Compensation.  These pro forma  disclosures  are provided as required under SFAS
No. 148, Accounting for Stock-Based  Compensation - Transition and Disclosure. A
reconciliation of the Corporation's net earnings to pro forma net earnings,  and
the related pro forma earnings per share amounts,  for the  three-month  periods
ended March 30, 2003, and March 31, 2002, is provided below.

- --------------------------------------------------------------------------------
                                                       Three Months Ended
(Amounts in Millions Except Per Share Data)     March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Net earnings                                             $43.4            $33.0
Adjustments to net earnings for:
   Stock-based compensation expense
     included in net earnings, net of tax                   .5                -

   Pro forma stock-based compensation
     (expense), net of tax                                (5.7)            (4.3)
- --------------------------------------------------------------------------------
Pro forma net earnings                                   $38.2            $28.7
================================================================================

================================================================================
Pro forma net earnings per common share --
   basic                                                 $ .49            $ .36
================================================================================
Pro forma net earnings per common share --
   assuming dilution                                     $ .49            $ .36
================================================================================

NOTE 9: RESTRUCTURING ACTIVITY
As more fully disclosed in Note 17 of Notes to Consolidated Financial Statements
included in Item 8 of the Corporation's  Annual Report on Form 10-K for the year
ended  December 31, 2002, the  Corporation  recorded a  restructuring  charge of
$50.7 million  during 2002 and a $99.8 million  charge during the fourth quarter
of 2001. A summary of restructuring activity during the three-month period ended
March 30, 2003, is as follows (in millions of dollars):



- -------------------------------------------------------------------------------------------------------------
                                        Reserves at    Utilization of Reserves        Foreign    Reserves at
                                       December 31,    -----------------------       Currency      March 30,
                                               2002       Cash        Non-Cash    Translation           2003
- -------------------------------------------------------------------------------------------------------------
                                                                                        
Severance benefits                            $45.1     $ (4.8)           $  -            $.3          $40.6
Other charges                                  14.8      (10.9)              -              -            3.9
- -------------------------------------------------------------------------------------------------------------
Total                                         $59.9     $(15.7)           $  -            $.3          $44.5
=============================================================================================================



                                      -12-

NOTE 10: LITIGATION AND CONTINGENT LIABILITIES
As more fully disclosed in Note 18 of Notes to Consolidated Financial Statements
included in Item 8 of the Corporation's  Annual Report on Form 10-K for the year
ended December 31, 2002, the Corporation is involved in various  lawsuits in the
ordinary course of business. These lawsuits primarily involve claims for damages
arising out of the use of the Corporation's products,  allegations of patent and
trademark infringement,  and litigation and administrative  proceedings relating
to employment matters and commercial disputes.  In addition,  the Corporation is
party to  litigation  and  administrative  proceedings  with  respect  to claims
involving the discharge of hazardous substances into the environment.
     The  Corporation's  estimate of the costs associated with product liability
claims,  environmental  exposures, and other legal proceedings is accrued if, in
management's  judgment,  the  likelihood of a loss is probable and the amount of
the  loss  can be  reasonably  estimated.  These  accrued  liabilities  are  not
discounted.
     In the opinion of  management,  amounts  accrued for exposures  relating to
product liability claims, environmental matters, and other legal proceedings are
adequate  and,  accordingly,  the ultimate  resolution  of these  matters is not
expected to have a material  adverse  effect on the  Corporation's  consolidated
financial  statements.  As of  March  30,  2003,  the  Corporation  had no known
probable  but  inestimable  exposures  relating  to  product  liability  claims,
environmental  matters,  or other legal  proceedings that are expected to have a
material adverse effect on the Corporation.  There can be no assurance, however,
that  unanticipated  events  will not require the  Corporation  to increase  the
amount it has  accrued  for any matter or accrue for a matter  that has not been
previously accrued because it was not considered probable.


                                      -13-

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS


OVERVIEW
The Corporation  reported net earnings of $43.4 million,  or $.55 per share on a
diluted basis, for the three-month period ended March 30, 2003,  compared to net
earnings  of $33.0  million,  or $.41  per  share on a  diluted  basis,  for the
three-month period ended March 3l, 2002.
     In the  discussion  and  analysis  of  financial  condition  and results of
operations that follows, the Corporation generally attempts to list contributing
factors in order of significance to the point being addressed.

RESULTS OF OPERATIONS

SALES
The following chart sets forth an analysis of the consolidated  changes in sales
for the three-month periods ended March 30, 2003 and March 31, 2002:

                          ANALYSIS OF CHANGES IN SALES
- --------------------------------------------------------------------------------
                                                      Three Months Ended
(Dollars in Millions)                          March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Total sales                                            $968.2           $951.7
- --------------------------------------------------------------------------------
Unit volume                                                (2)%              2%
Price                                                      (1)%             (1)%
Currency                                                    5%              (2)%
- --------------------------------------------------------------------------------
Change in total sales                                       2%              (1)%
================================================================================
     Total  consolidated  sales  for the three  months  ended  March  30,  2003,
increased by 2% over the 2002 level.  Decreases in unit volume  resulted in a 2%
decline in sales during the  three-month  period ended March 30, 2003,  from the
corresponding  period in 2002.  The unit volume  decline was due, in part,  to a
sharp  decrease  in sales of  plumbing  products  as a result of the shelf space
losses at The Home Depot that  occurred in the second half of 2002.  Unit volume
declines in other businesses during the first quarter of 2003,  particularly the
security hardware and professional power tools businesses in North America, were
partially  offset by strong sales growth in the consumer power tools business in
North  America.  Pricing  actions  had a 1%  negative  effect  on sales  for the
three-month period ended March 30, 2003, as compared to the corresponding period
in 2002.  The effects of a weaker dollar  compared to other foreign  currencies,
particularly  the  euro  and  pound  sterling,  caused  a  5%  increase  in  the
Corporation's  consolidated  sales during the three-month period ended March 30,
2003, as compared to the corresponding period in 2002.


                                      -14-

EARNINGS
Operating  income for the three months ended March 30, 2003,  was $73.3 million,
or 7.6% of sales,  compared to  operating  income of $62.2  million,  or 6.5% of
sales, for the corresponding period in 2002.
     Gross  margin  as a  percentage  of  sales  was  35.5%  and  32.2%  for the
three-month  periods  ended March 30, 2003,  and March 31,  2002,  respectively.
Gross margin as a percentage of sales for the three-month period ended March 30,
2003,  increased  in each  of the  Corporation's  three  business  segments,  as
compared to the  corresponding  period in 2002.  Increases were  principally the
result of higher productivity and restructuring  initiatives,  especially in the
North American and European power tools and  accessories  businesses.  While the
Corporation  anticipates that the positive  effects of productivity  initiatives
and restructuring  actions will continue to favorably impact the  year-over-year
comparisons  of gross  margins over the  remainder of 2003,  it expects that the
rate of  improvement  will moderate from the 3.3  percentage  point  improvement
experienced  in the first quarter of 2003 given the increases in the  comparable
gross  margin  as a  percentage  of  sales in each of the  successive  quarterly
periods in 2002.
     Selling, general, and administrative expenses as a percentage of sales were
27.9%  for  the  quarter  ended  March  30,  2003,  compared  to  25.7%  for the
three-month period ended March 31, 2002.  Selling,  general,  and administrative
expenses  increased by $25.5  million for the three months ended March 30, 2003,
as  compared to the  corresponding  period in 2002.  Approximately  half of that
$25.5 million increase was due to effects of foreign currency translation,  with
the  remainder  principally  attributable  to  higher  spending  in the areas of
marketing and  promotion as well as increased  transportation  and  distribution
costs.
     Net interest expense  (interest expense less interest income) for the three
months ended March 30, 2003, was $12.1 million  compared to net interest expense
of $15.8 million for the three months ended March 31, 2002.  The decrease in net
interest  expense for the three months ended March 30, 2003,  as compared to the
corresponding  period in 2002, was the result of both lower borrowing levels and
interest rates.
     Other  expense for the three months ended March 30, 2003,  was $1.8 million
as compared to $1.2 million for the corresponding period in 2002.
     The  Corporation's  effective tax rate was 27% for the three-month  periods
ended March 30, 2003, and March 31, 2002.
     The Corporation  reported net earnings of $43.4 million,  or $.55 per share
on a diluted basis, for the three-month period ended March 30, 2003, compared to
net earnings of $33.0  million,  or $.41 per share on a diluted  basis,  for the
three-month  period  ended  March 31,  2002.  In  addition  to the impact of the
operational matters previously described, earnings per share for the 2003 period
also  benefited  from  lower  shares  outstanding  as a result of common  shares
repurchased by the Corporation subsequent to March 31, 2002.

BUSINESS SEGMENTS
As more fully described in Note 6 of Notes to Consolidated Financial Statements,
the Corporation operates in three reportable business segments:  Power Tools and
Accessories, Hardware and Home Improvement, and Fastening and Assembly Systems.


                                      -15-

Power Tools and Accessories
Segment sales and profit for the Power Tools and Accessories segment, determined
on the basis described in Note 6 of Notes to Consolidated  Financial Statements,
were as follows (in millions of dollars):

- --------------------------------------------------------------------------------
                                                       Three Months Ended
                                                March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Sales to unaffiliated customers                         $647.1           $652.0
Segment profit                                            57.7             39.1
- --------------------------------------------------------------------------------
     Sales to unaffiliated  customers in the Power Tools and Accessories segment
during the first quarter of 2003 decreased 1% from the 2002 level.
     Sales of power  tools and  accessories  in North  America  during the first
quarter of 2003 approximated the prior year level as a high single-digit rate of
decline  in  sales  of  professional   power  tools  and  accessories  offset  a
double-digit  rate of growth in sales of consumer  power tools and  accessories.
Sales of  professional  power tools and accessories  decreased  during the first
quarter of 2003 compared to the prior year level,  reflecting  the weak economic
environment,  especially in the industrial sector, compounded by adverse weather
conditions.  During the first quarter of 2003, sales of consumer power tools and
accessories increased significantly over the corresponding period in 2002 due to
several  factors,  including:  (i)  strong  sales of new  products  in the first
quarter  of 2003;  (ii) a delay in orders of lawn and  garden  products  for the
spring  outdoor  season from the first to the second  quarter of 2002; and (iii)
expanded product placement with a significant customer.
     Sales in Europe decreased at a low  single-digit  rate in the first quarter
of 2003 from the  corresponding  period in 2002,  primarily  due to  declines in
sales of consumer  power tools and outdoor  products.  Sales declines in Germany
and  France  accounted  for much of the  European  sales  decrease,  due to weak
economic conditions and customers' efforts to control inventory levels.
     Sales in other  geographic areas increased at a  mid-single-digit  rate for
the first  quarter of 2003 over the prior year level as sales of consumer  power
tools and  accessories  increased  at a  mid-single-digit  rate,  while sales of
professional  power tools and accessories  increased at a low single-digit  rate
compared to the previous year's first quarter.
     Segment profit as a percentage of sales for the Power Tools and Accessories
segment was 8.9% for the three-month period ended March 30, 2003, as compared to
6.0% for the  corresponding  2002 period.  The  increase in segment  profit as a
percentage of sales during 2003 was driven by higher gross margins,  principally
in North American and European power tools and  accessories.  The improved gross
margins  primarily  resulted  from  higher   productivity  and  the  results  of
restructuring initiatives.


                                      -16-

Hardware and Home Improvement
Segment  sales  and  profit  for the  Hardware  and  Home  Improvement  segment,
determined on the basis described in Note 6 of Notes to  Consolidated  Financial
Statements, were as follows (in millions of dollars):

- --------------------------------------------------------------------------------
                                                       Three Months Ended
                                                March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Sales to unaffiliated customers                         $172.6           $201.0
Segment profit                                            15.0             15.6
- --------------------------------------------------------------------------------
     Sales to  unaffiliated  customers  in the  Hardware  and  Home  Improvement
segment  decreased  14% for the three  months  ended  March 30,  2003,  from the
corresponding  period  in  2002.  Sales  of  plumbing  products  declined  at  a
double-digit rate, reflecting a loss of shelf space at The Home Depot, which the
Corporation  announced  in the latter half of 2002.  Sales of security  hardware
decreased  at a high  single-digit  rate in the first  quarter  of 2003 from the
corresponding  period  in 2002,  due to  shifts  in the  timing  of  promotional
programs from the first quarter in 2002 to the second quarter in 2003 and to the
results of a brand and product  repositioning  that favorably  impacted sales in
the 2002 period.
     Segment  profit  as a  percentage  of  sales  for  the  Hardware  and  Home
Improvement  segment was 8.7% in the first  three  months of 2003 as compared to
7.8% in the  corresponding  period of 2002.  Segment  profit as a percentage  of
sales  benefited  from  improvements  in gross margin as a  percentage  of sales
during the  quarter  ended March 30,  2003.  The  increase in gross  margin as a
percentage  of sales was  primarily  driven  by  productivity  improvements  and
restructuring benefits.
     Although  the  loss  of  shelf  space  at The  Home  Depot  in  2002  had a
significant  effect on the  Corporation's  plumbing products business during the
first  quarter  of  2003,  the  plumbing   products  business  has  announced  a
significant  expansion  of its  product  listings  at  Lowe's.  This  expansion,
scheduled  to begin in the second  quarter of 2003,  is expected to increase the
average stock keeping units (SKU's) of the  Corporation's  plumbing  products at
Lowe's stores by approximately  75% and to significantly  mitigate the effect of
the loss of shelf space at The Home Depot.

Fastening and Assembly Systems
Segment  sales and  profit  for the  Fastening  and  Assembly  Systems  segment,
determined on the basis described in Note 6 of Notes to  Consolidated  Financial
Statements, were as follows (in millions of dollars):

- --------------------------------------------------------------------------------
                                                       Three Months Ended
                                                March 30, 2003   March 31, 2002
- --------------------------------------------------------------------------------
Sales to unaffiliated customers                         $129.2           $125.9
Segment profit                                            18.4             16.5
- --------------------------------------------------------------------------------
     Sales to  unaffiliated  customers in the  Fastening  and  Assembly  Systems
segment  increased  by 3% in the  first  quarter  of 2003  over the 2002  level,
reflecting gains in both the automotive and industrial sectors,  particularly in
Asia.
     Segment  profit as a  percentage  of sales for the  Fastening  and Assembly
Systems  segment  increased  from 13.1% in the first quarter of 2002 to 14.2% in
2003.  The  increase in  operating  profit as a  percentage  of sales was due to
higher gross margins, reflecting favorable manufacturing productivity.


                                      -17-

Other Segment-Related Matters
As more fully described in Note 6 of Notes to Consolidated Financial Statements,
in  determining   segment  profit   expenses   relating  to  pension  and  other
postretirement  benefits are based solely upon estimated service costs. Also, as
more fully  described in the  Corporation's  Annual  Report on Form 10-K for the
year ended December 31, 2002 in Item 7 under the caption "Financial  Condition",
the Corporation  anticipates that the expense recognized relating to its pension
and other  postretirement  benefits plans in 2003 will increase by approximately
$30 million from the 2002 levels.  The adjustment to businesses'  postretirement
benefit  expense  booked in  consolidation  as  identified  in the  final  table
included  in Note 6 of  Notes  to  Consolidated  Financial  Statements  was $3.6
million and $10.3 million for the  three-month  periods ended March 30, 2003 and
March 31, 2002,  respectively.  This decrease  reflects the impact excluded from
the Corporation's  reportable  business segments of that increase in pension and
other postretirement benefits expense.
     Expenses  directly  related  to  reportable  business  segments  booked  in
consolidation  and,  thus,  excluded  from  segment  profit  for the  reportable
business  segments  were $10.0  million  and $4.7  million  for the  three-month
periods ended March 30, 2003 and March 31, 2002,  respectively.  The increase in
these expenses for the  three-month  period ended March 30, 2003, as compared to
the  corresponding   2002  period   principally   relates  to  $4.1  million  of
restructuring-related  expenses  associated with the Power Tools and Accessories
segment.

RESTRUCTURING ACTIVITY
As more fully discussed in Note 9 of Notes to Consolidated  Financial Statements
and in the Corporation's  Annual Report on Form 10-K for the year ended December
31, 2002 in both Item 7 under the caption  "Restructuring  Actions", and Note 17
of Notes to  Consolidated  Financial  Statements  included in Item 8, during the
fourth quarter of 2001, the Corporation formulated a restructuring plan designed
to reduce its manufacturing  footprint,  variable production costs, and selling,
general, and administrative expenses.  During 2001 and 2002, the Corporation has
recognized  pre-tax  restructuring  charges  under  this  plan  totaling  $150.5
million. The Corporation believes that additional pre-tax  restructuring charges
of up to  $20  million  will  be  recognized  over  the  remaining  life  of its
restructuring plan, which as currently  envisioned,  will be implemented in 2003
and 2004.
     The Corporation  expects that incremental  pre-tax savings  associated with
the  restructuring  plan will benefit 2003 and 2004 results,  by $35 million and
$40  million,  respectively,  net of  restructuring-related  expenses.  Ultimate
savings realized from restructuring  actions may be mitigated by such factors as
continued economic weakness and competitive  pressures,  as well as decisions to
increase  costs in areas such as  promotion or research  and  development  above
levels that were otherwise assumed.
     The  Corporation is committed to continuous  productivity  improvement  and
continues to evaluate  opportunities to reduce fixed costs,  simplify or improve
processes, and eliminate excess capacity.

FINANCIAL CONDITION
Operating  activities  used cash of $120.4  million for the three  months  ended
March 30, 2003,  compared to $62.5 million of cash provided in the corresponding
period in 2002. The decrease in cash provided by operating activities during the
quarter ended March 30, 2003, was primarily a result of higher  inventories,  as
well as the payments during the first quarter of higher accrued


                                      -18-

liabilities that existed at year-end 2002 and higher cash taxes, all as compared
to the first quarter of 2002.
     As part of its capital management,  the Corporation reviews certain working
capital metrics. For example, the Corporation  evaluates its accounts receivable
and inventory  levels  through the  computation  of days sales  outstanding  and
inventory turnover ratio, respectively.  The number of days sales outstanding at
March 30, 2003,  approximated the number of days sales  outstanding at March 31,
2002.  Average inventory turns at March 30, 2003, were flat in comparison to the
comparable period in 2002 despite the increased  inventory levels as a result of
safety stock related to the Corporation's  restructuring  program and lower than
expected sales. The Corporation  anticipates that the safety stock will begin to
decline in the second quarter and will be effectively eliminated by year end.
     Investing  activities for the three months ended March 30, 2003,  used cash
of $26.2 million as compared to $19.8 million of cash used for the corresponding
period in 2002.  The increase in cash usage was primarily due to higher  capital
expenditures  during the first quarter of 2003 as compared to the  corresponding
period in 2002. The Corporation  anticipates  that its capital  spending in 2003
will approximate $125 million.
     The  Corporation  previously  announced  that it has signed an agreement to
sell its European  Security  Hardware  business for $108  million.  The European
Security Hardware  business is included in the  Corporation's  Hardware and Home
Improvement  segment.  The sale is subject  to  regulatory  approval  and is not
expected to have a material effect on the  Corporation's  financial  results for
2003.
     Financing  activities used cash of $86.4 million for the three-month period
ended March 30, 2003, as compared to cash used of $26.1 million during the first
three  months of 2002.  The  increase  in cash used is  primarily  the result of
higher cash expenditures for stock repurchases during the first quarter of 2003.
During the three  months  ended  March 30,  2003,  the  Corporation  repurchased
2,011,570  shares of its common  stock at an  aggregate  cost of $77.5  million.
During the corresponding  period in 2002, the Corporation did not repurchase any
shares of its common stock.  At March 30, 2003,  the  Corporation  had remaining
authorization from its Board of Directors to repurchase  2,911,595 shares of its
common stock.
     As  discussed  further  in  Note  3  of  Notes  to  Consolidated  Financial
Statements,  in April 2002,  the  Corporation  replaced an expiring $400 million
364-day  unsecured  revolving  credit  facility  with  a  $250  million  364-day
unsecured  revolving credit facility (the Credit  Facility).  In April 2003, the
Corporation elected not to request renewal of the Credit Facility based upon its
anticipated  short-term financing needs. Also, as discussed further in Note 4 of
Notes to Consolidated  Financial  Statements,  on April 1, 2003, the Corporation
repaid $309.5 million of 7.50% notes.
     The  variable  rate debt to total debt ratio,  after taking  interest  rate
hedges into account,  was 52% at March 30, 2003, and December 31, 2002.  Average
debt maturity was 7.0 years at March 30, 2003, compared to 7.2 years at December
31, 2002.

FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 (the Reform Act) provides a
safe  harbor  for  forward-looking  statements  made  by or  on  behalf  of  the
Corporation.  The  Corporation and its  representatives  may, from time to time,
make  written  or  verbal  forward-looking   statements,   including  statements
contained  in  the  Corporation's  filings  with  the  Securities  and  Exchange
Commission and in its reports to stockholders.  Generally,  the inclusion of the
words  "believe,"


                                      -19-

"expect," "intend,"  "estimate,"  "anticipate,"  "will," and similar expressions
identify  statements that  constitute  "forward-looking  statements"  within the
meaning of Section  27A of the  Securities  Act of 1933 and  Section  21E of the
Securities  Exchange  Act of 1934 and that are  intended to come within the safe
harbor  protection  provided  by  those  sections.   All  statements  addressing
operating  performance,  events, or developments that the Corporation expects or
anticipates  will occur in the future,  including  statements  relating to sales
growth,  earnings or earnings per share  growth,  and market  share,  as well as
statements  expressing optimism or pessimism about future operating results, are
forward-looking   statements   within  the  meaning  of  the  Reform  Act.   The
forward-looking  statements are and will be based upon management's then-current
views and assumptions regarding future events and operating performance, and are
applicable only as of the dates of such statements.  The Corporation  undertakes
no obligation to update or revise any forward-looking  statements,  whether as a
result of new information, future events, or otherwise.
     By  their  nature,  all   forward-looking   statements  involve  risks  and
uncertainties.  Actual results may differ materially from those  contemplated by
the  forward-looking  statements  for a number  of  reasons,  including  but not
limited to those factors  identified in Item 1(g) of Part I of the Corporation's
Annual  Report on Form 10-K for the year ended  December 31, 2002. An additional
risk factor that should be  considered  is the  potential  effects of the Severe
Acute  Respiratory  Syndrome  ("SARS")  on  the  Corporation.   The  Corporation
purchases  materials  and  components  from  suppliers  in  China  and  conducts
manufacturing operations in China. While SARS has not currently affected, and is
not anticipated to affect,  the Corporation's  operations,  if SARS becomes more
widespread,  it could  adversely  affect  the  economy  in China and as a result
adversely  affect the  Corporation's  manufacturing  and sourcing  operations in
China.


                                      -20-

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Information  required  under  this  Item  is  contained  in Note 4 of  Notes  to
Consolidated  Financial  Statements and under the caption "Hedging  Activities",
included  in Item 7, and in Notes 1 and 7 of  Notes  to  Consolidated  Financial
Statements  included in Item 8 of the  Corporation's  Annual Report on Form 10-K
for the year ended December 31, 2002, and is incorporated by reference herein.

ITEM 4. CONTROLS AND PROCEDURES
     (a)  Within  90 days  prior to the  date of this  report,  the  Corporation
carried out an  evaluation--under  the supervision and with the participation of
the  Corporation's  management,  including  the  Corporation's  Chief  Executive
Officer and Chief  Financial  Officer--of  the  effectiveness  of the design and
operation of the Corporation's  disclosure  controls and procedures  pursuant to
Exchange Act Rule 13a-15.  Based upon that evaluation,  the Corporation's  Chief
Executive   Officer  and  Chief  Financial   Officer  have  concluded  that  the
Corporation's disclosure controls and procedures are effective.
     (b) There have been no significant  changes in the  Corporation's  internal
controls or in other  factors that could  significantly  affect  these  controls
subsequent to the date of the evaluation described in the preceding paragraph.


                                      -21-

                         THE BLACK & DECKER CORPORATION


PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
The  Corporation  is involved  in various  lawsuits  in the  ordinary  course of
business. These lawsuits primarily involve claims for damages arising out of the
use of the  Corporation's  products  and  allegations  of patent  and  trademark
infringement.  The Corporation also is involved in litigation and administrative
proceedings involving employment matters and commercial disputes.  Some of these
lawsuits  include  claims for  punitive  as well as  compensatory  damages.  The
Corporation, using current product sales data and historical trends, actuarially
calculates the estimate of its exposure for product  liability.  The Corporation
is insured for  product  liability  claims for amounts in excess of  established
deductibles and accrues for the estimated liability as described above up to the
limits of the  deductibles.  All other  claims  and  lawsuits  are  handled on a
case-by-case basis.
     Pursuant  to  authority  granted  under  the  Comprehensive   Environmental
Response,  Compensation  and Liability Act of 1980  (CERCLA),  the United States
Environmental  Protection Agency (EPA) has issued a National Priority List (NPL)
of sites at which  action  is to be taken to  mitigate  the risk of  release  of
hazardous  substances  into the  environment.  The  Corporation  is  engaged  in
continuing  activities  with regard to various  sites on the NPL and other sites
covered under CERCLA. The Corporation also is engaged in site investigations and
remedial activities to address environmental  contamination from past operations
at current and former manufacturing  facilities in the United States and abroad.
To minimize the Corporation's  potential  liability with respect to these sites,
management has undertaken,  when appropriate,  active  participation in steering
committees  established  at the sites  and has  agreed  to  remediation  through
consent orders with the appropriate government agencies. Due to uncertainty over
the  Corporation's  involvement  in  some of the  sites,  uncertainty  over  the
remedial  measures,  and the fact that imposition of joint and several liability
with the right of  contribution  is  possible  under  CERCLA  and other laws and
regulations,  the liability of the Corporation with respect to any site at which
remedial  measures have not been completed cannot be established with certainty.
On the basis of periodic reviews conducted with respect to these sites, however,
the Corporation has established appropriate liability accruals.
     The  Corporation's  estimate of costs  associated  with  product  liability
claims,  environmental  matters,  and other legal  proceedings is accrued if, in
management's  judgment,  the  likelihood of a loss is probable and the amount of
the  loss  can be  reasonably  estimated.  These  accrued  liabilities  are  not
discounted.
     In the opinion of  management,  amounts  accrued for exposures  relating to
product liability claims, environmental matters, and other legal proceedings are
adequate  and,  accordingly,  the ultimate  resolution  of these  matters is not
expected to have a material  adverse  effect on the  Corporation's  consolidated
financial  statements.  As of  March  30,  2003,  the  Corporation  had no known
probable  but  inestimable  exposures  relating  to  product  liability  claims,
environmental  matters,  or other legal  proceedings that are expected to have a
material adverse effect on the Corporation.  There can be no assurance, however,
that  unanticipated  events  will not require the  Corporation  to increase  the
amount it has  accrued  for any matter or accrue for a matter  that has not been
previously accrued because it was not considered probable.


                                      -22-

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The 2003 Annual  Meeting of  Stockholders  was held on April 29,  2003,  for the
election  of  directors,  to ratify  the  selection  of Ernst & Young LLP as the
Corporation's  independent  auditor for fiscal year 2003, to approve The Black &
Decker 2003 Stock Option Plan, and to act on certain  stockholder  proposals.  A
total of 68,558,933 of the  78,594,593  votes entitled to be cast at the meeting
were present in person or by proxy. At the meeting, the stockholders:

     (1) Elected the following directors:
                                           Number of Shares     Number of Shares
         Directors                                Voted For   Authority Withheld
     ---------------------------------------------------------------------------
         Nolan D. Archibald                      67,459,137            1,099,796
         Norman R. Augustine                     64,644,591            3,914,342
         Barbara L. Bowles                       64,628,480            3,930,453
         M. Anthony Burns                        64,646,484            3,912,449
         Kim B. Clark                            67,771,706              787,227
         Manuel A. Fernandez                     65,591,281            2,967,652
         Benjamin H. Griswold, IV                65,593,848            2,965,085
         Anthony Luiso                           65,593,584            2,965,349

     (2) Ratified  the  selection  of  Ernst  & Young  LLP as the  Corporation's
         independent  auditor  for fiscal  year 2003 by an  affirmative  vote of
         62,411,267;  votes against ratification were 5,615,735; and abstentions
         were 531,931.

     (3) Approved  The Black & Decker 2003 Stock  Option Plan by an  affirmative
         vote  of  44,583,765;  votes  against  the  proposal  were  15,633,916;
         abstentions were 580,228; and broker non-votes were 7,761,024.

     (4) Rejected  Stockholder  Proposal  1 by a  negative  vote of  51,387,446;
         affirmative   votes  for  the  stockholder   proposal  were  8,356,768;
         abstentions were 1,053,695; and broker non-votes were 7,761,024.

     (5) Approved  Stockholder  Proposal 2 by an affirmative vote of 30,862,250;
         negative  votes  against  the  stockholder  proposal  were  28,038,844;
         abstentions were 1,896,815; and broker non-votes were 7,761,024.

No other matters were submitted to a vote of the stockholders at the meeting.


                                      -23-

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        Exhibit No.   Description

            10        The Black & Decker  2003 Stock  Option  Plan,  as amended,
                      included in the  definitive  Proxy  Statement for the 2003
                      Annual Meeting of Stockholders  of the  Corporation  dated
                      March 11, 2003, is incorporated by reference.

            99.0      Chief  Executive  Officer's  Certification  Pursuant to 18
                      U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
                      The Sarbanes-Oxley Act of 2002.

            99.1      Chief  Financial  Officer's  Certification  Pursuant to 18
                      U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
                      The Sarbanes-Oxley Act of 2002.

On January 3, 2003, the Corporation  furnished a Current Report on Form 8-K with
the Commission. That Current Report on Form 8-K, furnished pursuant to Item 9 of
that Form,  stated that, on January 3, 2003, the  Corporation  announced that it
affirmed  comfort with consensus  earnings  estimates for the fourth quarter and
full year 2002.

On January 30, 2003, the Corporation furnished a Current Report on Form 8-K with
the Commission. That Current Report on Form 8-K, furnished pursuant to Item 9 of
that Form,  stated that, on January 30, 2003, the  Corporation  had reported its
earnings for the three months and year ended December 31, 2002.

The  Corporation  did not file nor furnish any other  reports on Form 8-K during
the three-month period ended March 30, 2003.

All other items were not applicable.


                                      -24-

                         THE BLACK & DECKER CORPORATION


                               S I G N A T U R E S



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                       THE BLACK & DECKER CORPORATION

                       By  /s/ MICHAEL D. MANGAN
                           -----------------------------------------------------
                               Michael D. Mangan
                               Senior Vice President and Chief Financial Officer



                       Principal Accounting Officer

                       By  /s/ CHRISTINA M. McMULLEN
                           -----------------------------------------------------
                               Christina M. McMullen
                               Vice President and Controller




Date:  May 7, 2003


                                      -25-

                         THE BLACK & DECKER CORPORATION


                           C E R T I F I C A T I O N S

I, Nolan D. Archibald, certify that:
     1. I have reviewed this quarterly report on Form 10-Q of The Black & Decker
Corporation;
     2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;
     3. Based on my knowledge,  the financial  statements,  and other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
     4. The  registrant's  other  certifying  officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a)   designed such  disclosure  controls and  procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;
b)   evaluated the  effectiveness  of the registrant's  disclosure  controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and
c)   presented in this quarterly report our conclusions  about the effectiveness
     of the disclosure controls and procedures based on our evaluation as of the
     Evaluation Date;
     5. The registrant's other certifying  officers and I have disclosed,  based
on our most  recent  evaluation,  to the  registrant's  auditors  and the  audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent function):
a)   all  significant  deficiencies  in the  design  or  operation  of  internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and
b)   any fraud,  whether or not  material,  that  involves  management  or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and
     6. The registrant's other certifying  officers and I have indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


/s/ NOLAN D. ARCHIBALD
- ------------------------------------------------
Nolan D. Archibald
Chairman, President, and Chief Executive Officer
May 7, 2003


                                      -26-

                         THE BLACK & DECKER CORPORATION


                           C E R T I F I C A T I O N S

I, Michael D. Mangan, certify that:
     1. I have reviewed this quarterly report on Form 10-Q of The Black & Decker
Corporation;
     2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;
     3. Based on my knowledge,  the financial  statements,  and other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
     4. The  registrant's  other  certifying  officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a)   designed such  disclosure  controls and  procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;
b)   evaluated the  effectiveness  of the registrant's  disclosure  controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and
c)   presented in this quarterly report our conclusions  about the effectiveness
     of the disclosure controls and procedures based on our evaluation as of the
     Evaluation Date;
     5. The registrant's other certifying  officers and I have disclosed,  based
on our most  recent  evaluation,  to the  registrant's  auditors  and the  audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent function):
a)   all  significant  deficiencies  in the  design  or  operation  of  internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and
b)   any fraud,  whether or not  material,  that  involves  management  or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and
     6. The registrant's other certifying  officers and I have indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


/s/ MICHAEL D. MANGAN
- -------------------------------------------------
Michael D. Mangan
Senior Vice President and Chief Financial Officer
May 7, 2003