Masco Corporation : Masco Corporation : STEADY GROWTH CONTINUES FOR MASCO IN FIRST QUARTER 2013 STEADY GROWTH CONTINUES FOR MASCO IN FIRST QUARTER 2013 Key Highlights oSales increased 4 percent to $1.9 billion oNorth American sales increased 6 percent oGrowth driven by new home construction and new products and programs oAdjusted operating profit increased 19 percent oCabinet segment's adjusted operating profit improved to break-even Taylor, Michigan (April 29, 2013) - Masco Corporation (NYSE: MAS) continued to deliver steady growth in the first quarter of 2013. Top line growth was fueled by the strength of new home construction in North America and the successful execution of new product and program introductions. Adjusted operating margins increased from 6.5 to 7.5 percent due to higher volumes and our continued commitment to cost control. In our Cabinet segment, adjusted operating margin performance improved to a break-even level of profitability. We also successfully entered into a new five year $1.25 billion unsecured revolving credit agreement. 2013 First Quarter Commentary oNet sales from continuing operations increased 4 percent to $1.9 billion, compared with $1.8 billion for first quarter 2012. North American sales increased 6 percent and international sales decreased 2 percent, in U.S. dollars and local currency oCompared to first quarter 2012, 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: *Gross margins of 27.4 percent were unchanged *Operating margins improved to 7.5 percent compared to 6.5 percent *Income from continuing operations was $0.13 per common share compared to $0.07 per common share oIncome from continuing operations, as reported, was $0.16 per common share compared to $0.12 per common share in the first quarter of 2012 oWe ended the first quarter with approximately $1 billion of cash 2013 First Quarter Operating Segment Highlights *North American faucet and toilet business achieved sales growth percentage in the mid-teens *Decorative Architectural Products' margin expansion was driven by the anniversary of pricing actions and reduced program costs *Cabinets and Related Products achieved break-even operating profit on an adjusted basis, with North American Cabinetry achieving profitability *Installation and Other Services continued to benefit from new home construction growth *Other Specialty Products' net sales increased 8 percent, led by a strong performance from our North American window business "We continued to benefit from strong growth in North American new home construction," said Masco's President and CEO, Tim Wadhams. "Despite a harsher winter this year in regions of North America and Europe, we improved our performance in the first quarter compared to 2012. The new products and programs we've introduced have exceeded our expectations and contributed to our steady growth. Our Cabinet segment is heading in the right direction, with adjusted operating performance achieving a break-even level of profitability. 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 is reflected in our overall positive performance in the first quarter of 2013." Outlook "We continue to believe that new home construction will show strong growth in 2013, and repair and remodel activity will grow modestly, with big ticket items continuing to lag. While the continued weakness in the Eurozone remains a concern, we believe our ability to leverage the growth in new home construction, along with the actions we have taken over the past several years, including investing in our brands, reducing our cost structure and paying down debt, will continue to strengthen our business for the future," said Mr. Wadhams. About Masco 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 2013 first 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, April 30, 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 (855) 226-2726 (855-22MASCO) and from outside the U.S. at (706) 679-3614. Please use the conference identification number 29185155. 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 website or by phone by dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use the conference identification number 29185155. The telephone replay will be available approximately two hours after the end of the call and continue through May 14, 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, uncertainty in the international economy, 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 otherwise. 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 Maria Duey Vice President - Investor Relations & Corporate Communications 313.792.5500 firstname.lastname@example.org Masco Analyst Package 3 31 13 ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Masco Corporation via Thomson Reuters ONE HUG#1697611
Masco Corporation : Masco Corporation : STEADY GROWTH CONTINUES FOR MASCO IN FIRST QUARTER 2013
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