Masco Corporation : Masco Corporation : STEADY GROWTH CONTINUES FOR MASCO IN
FIRST QUARTER 2013
STEADY GROWTH CONTINUES FOR MASCO IN FIRST QUARTER 2013
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
*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."
"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.
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
Vice President - Investor Relations &
Masco Analyst Package 3 31 13
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(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Masco Corporation via Thomson Reuters ONE
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