Atlas Copco to sell Power Tool Division (Milwaukee Electric Tool)

Wow! Big news in the Hardware Industry. Read the whole story at www.manufacturing.net/ind/ - 65k - May 19, 2004 . While the article talks about the profitability of the division, you kind of have to wonder a little about the impact of the Big Boxes on Atlas Copco's decision to sell. We know that Pentair (Porter Cable and Delta) has been having some financial troubles for a while. Black & Decker's earnings have not been so great either (DeWalt). Skil- Bosch has been very quiet as well.

It is common knowledge that power tools have been used as price leaders at the Big Boxes for some time and more Power Tool business is shifting to overseas production. Could this be the reason for the poor financial returns and the decision to sell? Will this be the precursor of things to come in the Hardware Industry.