New York  - US small appliance maker Black & Decker said Friday profits shrank in the second quarter as declining demand in Western Europe and the United States coupled with rising costs.

Net profits fell 18 percent to 97 million dollars. Revenue fell 3 per cent to 1.6 billion dollars, and the Towson, Maryland-based firm predicted the week sales would continue in the second half of the year.

The weaker US housing market has hurt demand for the firm's small electronic appliances and demand in Western Europe has also slowed, chief executive Nolan Archibald said. But the weak dollar has helped sales in the rest of the international market and Eastern Europe.

Rising costs for raw materials, parts, energy and transportation have also hurt the bottom-line. (dpa)