Jan. 29 (Bloomberg) -- Black & Decker Corp., the largest U.S. maker of hand tools, fell 21 percent in New York trading, the most since 1987, after it said fourth-quarter sales dropped 17 percent and forecast further declines.

“We are facing a financial and economic crisis unlike anything in our professional careers,” said Chief Executive Officer Nolan Archibald on a conference call. “Our margins will come under more pressure, especially in the first quarter.”

First-quarter sales may fall as much as 20 percent from $1.5 billion a year earlier, the company said.

The Towson, Maryland-based power-tool maker lost $8.09 to $30.65 at 4:01 p.m. in New York Stock Exchange composite trading, its lowest price in more than 7 years. The percentage decline is the largest since Oct. 26, 1987.

Black & Decker expects earnings per share of 5 cents to 15 cents in the quarter, compared with $1.09 a year earlier. The average estimate of eight analysts surveyed by Bloomberg is 79 cents.

For the full year, Black & Decker’s profit fell 43 percent to $293.6 million. The company may consider lowering its 42-cent dividend this year if the economy worsens, Archibald said.

To contact the reporter on this story: Greg Bensinger in New York at gbensinger1@bloomberg.net

Last Updated: January 29, 2009 16:21 EST