Masco Corporation : Masco Corporation: MASCO DELIVERS STRONG GROWTH IN FOURTH
MASCO DELIVERS STRONG GROWTH IN FOURTH QUARTER 2012
oSales increased 9 percent to $1.9 billion
oNorth American sales increased 12 percent
oInstallation segment returned to profitability
oAll segments contributed to an adjusted operating margin expansion of 340
Taylor, Mich., (February 11, 2013) - Masco Corporation (NYSE: MAS) increased
profit in the fourth quarter of 2012 with strong sales and operating margin
growth in North America, including continued improvement in Installation
Services. All five operating segments delivered positive sales growth and
improved operating profit for the first time since the housing downturn.
2012 Fourth Quarter Commentary
oNet sales from continuing operations increased 9 percent to $1.9 billion,
compared with $1.7 billion for fourth quarter 2011. North American sales
increased 12 percent and international sales decreased 1 percent. In local
currencies, international sales increased 2 percent compared with fourth
oCompared to fourth quarter 2011, results for key financial measures, as
adjusted for certain items (see Exhibit A) and with a normalized tax rate
of 36 percent, were as follows:
oGross profit margins were 25.0 percent compared to 21.9 percent
oOperating profit margins were 5.0 percent compared to 1.6 percent
oIncome (loss) from continuing operations was $0.04 per common share
compared to $(0.09) per common share
oLoss from continuing operations, as reported, was $(0.23) per common share
compared to $(1.42) per common share in the fourth quarter of 2011
oWe ended the fourth quarter with approximately $1.4 billion of cash
2012 Fourth Quarter Operating Segment Results
oPlumbing Products' net sales increased 10 percent, fueled by strong
performance in North America and internationally
oDecorative Architectural Products' net sales increased 11 percent, driven
by growth in core products and new programs
oNorth American Cabinetry's sales increased 13 percent and operating
oInstallation and Other Services achieved profitability for the first time
since the fourth quarter of 2008
oOther Specialty Products' net sales increased 6 percent and segment
margins expanded, reflecting share gains and profit improvement
"Our solid fourth quarter results reflect the successful execution of our
strategic initiatives, including leveraging our brands, reducing our costs,
improving our Installation and Cabinet segments and strengthening our balance
sheet," said Masco's President and CEO, Tim Wadhams. "Our sales and margin
growth represent strong performance across all of our operating segments,
including a return to profitability in our Installation segment. We believe
this momentum will continue into 2013."
2012 Full-Year Commentary
oNet sales increased 4 percent to $7.7 billion, compared to 2011. Excluding
currency, net sales increased 5 percent
oCompared to full-year 2011, results for key financial measures, as
adjusted for certain items (see Exhibit B) and with a normalized tax rate
of 36 percent, were as follows:
oGross profit margins were 26.0 percent compared to 25.1 percent
oOperating profit margins were 6.1 percent compared to 4.4 percent
oIncome from continuing operations was $0.32 per common share compared to
$0.02 per common share
oLoss from continuing operations, as reported, was $(0.22) per common share
compared to $(1.34) per common share in 2011
In early February we determined that our Danish ready-to-assemble cabinet
business is not core to our long-term growth strategy and, accordingly, we
have commenced a plan of disposition for this business. This business unit
had sales of approximately $250 million in 2012.
"We expect new home construction to show strong growth in 2013, and anticipate
repair and remodel to grow modestly, with big ticket items continuing to lag.
Our focus this year is to successfully execute new product programs, improve
profitability in Cabinets and Installation Services, and expand our brand
leadership positions. We believe the actions we have taken over the past
several years, including investing in our brands, reducing our cost structure
and paying down debt, have strengthened our business. We believe these
actions have positively positioned us to take advantage of the upturn in the
housing cycle," said Mr. Wadhams.
Headquartered in Taylor, Michigan, Masco Corporation is one of the world's
leading manufacturers of home improvement and building products, as well as a
leading provider of services that include the installation of insulation and
other building products.
The 2012 fourth quarter supplemental material, including a presentation in PDF
format, is available on the Company's website at www.masco.com.
Conference Call Details
A conference call regarding items contained in this release is scheduled for
Tuesday, February 12, 2013 at 8:00 a.m. ET. Participants in the call are
asked to register five to ten minutes prior to the scheduled start time by
dialing (877) 550-4056 and from outside the U.S. at (706) 679-3614. Please use
the conference identification number 87003575. The conference call will be
webcast simultaneously and in its entirety through the Company's website.
Shareholders, media representatives and others interested in Masco may
participate in the webcast by registering through the Investor Relations
section on the Company's website.
A replay of the call will be available on Masco's Web site or by phone by
dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use
the conference identification number 87003575. The telephone replay will be
available approximately two hours after the end of the call and continue
through February 26, 2013.
Safe Harbor Statement
Statements contained in this press release that reflect our views about our
future performance constitute "forward-looking statements" under the Private
Securities Litigation Reform Act of 1995. Forward-looking statements can be
identified by words such as "believe," "anticipate," "appear," "may," "will,"
"should," "intend," "plan," "estimate," "expect," "assume," "seek,"
"forecast," and similar references to future periods. These views involve
risks and uncertainties that are difficult to predict and, accordingly, our
actual results may differ materially from the results discussed in our
forward-looking statements. We caution you against relying on any of these
forward-looking statements. Our future performance may be affected by our
reliance on new home construction and home improvement, our reliance on key
customers, the cost and availability of raw materials, shifts in consumer
preferences and purchasing practices, our ability to improve our
underperforming businesses, and our ability to maintain our competitive
position in our industries. These and other factors are discussed in detail
in Item 1A, "Risk Factors" in our most recent Annual Report on Form 10-K, as
well as in our Quarterly Reports on Form 10-Q and in other filings we make
with the Securities and Exchange Commission. Our forward-looking statements
in this press release speak only as of the date of this press release.
Factors or events that could cause our actual results to differ may emerge
from time to time, and it is not possible for us to predict all of them.
Unless required by law, we undertake no obligation to update publicly any
forward-looking statements as a result of new information, future events or
The Company believes that the non-GAAP performance measures and ratios that
are contained herein, used in managing the business, may provide users of this
financial information with additional meaningful comparisons between current
results and results in prior periods. Non-GAAP performance measures and
ratios should be viewed in addition to, and not as an alternative for, the
Company's reported results under accounting principles generally accepted in
the United States. Additional information about the Company is contained in
the Company's filings with the Securities and Exchange Commission and is
available on Masco's website at www.masco.com.
Investor / Media Contact
Vice President - Investor Relations &
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Source: Masco Corporation via Thomson Reuters ONE
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