05.04.15
Masco Corporation one of the world’s leading manufacturers of branded building products, reported net sales and operating profit growth in the first quarter of 2015 with all segments reporting increased sales in local currency. Adjusted operating profit margin rose to 9 percent, reflecting the Company’s focused execution and commitment to cost control.
“The momentum we built over the past several years carried into the first quarter as we realized top- and bottom- line growth as well as margin expansion. Our customer-focused innovation and leading brands drove consumer demand across the segments,” said Masco’s president and CEO Keith Allman. “In local currency, both Delta Faucet and Hansgrohe achieved their highest sales quarters ever. Our focus on the pro painter and new products drove sales in the Decorative Architectural segment. The Other Specialty segment’s ongoing commitment to innovation led to strengthened results. The Installation segment continues to perform well, benefiting from strategic diversification into commercial construction and a recovering housing environment. In the Cabinets and Related Products segment, our efforts to improve execution are paying off as we increased sales to home centers and builders while improving profitability.”
2015 First Quarter Commentary
• Net sales from continuing operations increased 3 percent to $2 billion. North American sales increased 5 percent and international sales decreased 8 percent in U.S. dollars but increased 10 percent in local currency
• Compared to first quarter 2014, 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 improved to 28.2 percent compared to 28 percent
• Operating margins improved to 9 percent compared to 8 percent
• Income from continuing operations was $.20 per common share compared to $.14 per common share
• Income from continuing operations, as reported, was $.18 per common share
• Liquidity at the end of the first quarter was approximately $1.8 billion
• Approximately 4 million shares were repurchased in the first quarter
2015 First Quarter Operating Segment Highlights
• Plumbing Products’ net sales decreased 1 percent, but increased 8 percent excluding the effect of foreign currency translation, fueled by continued strength in the wholesale channel
• Decorative Architectural Products’ net sales increased 2 percent driven by the pro paint initiative and builders’ hardware program wins
• Cabinets and Related Products’ net sales increased 5 percent, driven by continued growth with builders as well as KraftMaid Cabinetry’s sales growth with home centers and dealers
• Installation and Other Services’ net sales increased 7 percent with growth across all channels
• Other Specialty Products’ net sales increased 7 percent, led by a strong performance across all channels and geographies
“We are pleased with our solid start to the year. Our businesses are performing well and executing as planned,” continued Allman. “Our repair and remodel business is growing, with increasing demand for our products across all price points. We remain focused on driving shareholder value and returning cash to shareholders, as evidenced by approximately $135 million we returned to shareholders in the first quarter through dividends and share repurchases. Our outlook for the year remains positive as we anticipate increasing demand for our market-leading products and services.”
“The momentum we built over the past several years carried into the first quarter as we realized top- and bottom- line growth as well as margin expansion. Our customer-focused innovation and leading brands drove consumer demand across the segments,” said Masco’s president and CEO Keith Allman. “In local currency, both Delta Faucet and Hansgrohe achieved their highest sales quarters ever. Our focus on the pro painter and new products drove sales in the Decorative Architectural segment. The Other Specialty segment’s ongoing commitment to innovation led to strengthened results. The Installation segment continues to perform well, benefiting from strategic diversification into commercial construction and a recovering housing environment. In the Cabinets and Related Products segment, our efforts to improve execution are paying off as we increased sales to home centers and builders while improving profitability.”
2015 First Quarter Commentary
• Net sales from continuing operations increased 3 percent to $2 billion. North American sales increased 5 percent and international sales decreased 8 percent in U.S. dollars but increased 10 percent in local currency
• Compared to first quarter 2014, 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 improved to 28.2 percent compared to 28 percent
• Operating margins improved to 9 percent compared to 8 percent
• Income from continuing operations was $.20 per common share compared to $.14 per common share
• Income from continuing operations, as reported, was $.18 per common share
• Liquidity at the end of the first quarter was approximately $1.8 billion
• Approximately 4 million shares were repurchased in the first quarter
2015 First Quarter Operating Segment Highlights
• Plumbing Products’ net sales decreased 1 percent, but increased 8 percent excluding the effect of foreign currency translation, fueled by continued strength in the wholesale channel
• Decorative Architectural Products’ net sales increased 2 percent driven by the pro paint initiative and builders’ hardware program wins
• Cabinets and Related Products’ net sales increased 5 percent, driven by continued growth with builders as well as KraftMaid Cabinetry’s sales growth with home centers and dealers
• Installation and Other Services’ net sales increased 7 percent with growth across all channels
• Other Specialty Products’ net sales increased 7 percent, led by a strong performance across all channels and geographies
“We are pleased with our solid start to the year. Our businesses are performing well and executing as planned,” continued Allman. “Our repair and remodel business is growing, with increasing demand for our products across all price points. We remain focused on driving shareholder value and returning cash to shareholders, as evidenced by approximately $135 million we returned to shareholders in the first quarter through dividends and share repurchases. Our outlook for the year remains positive as we anticipate increasing demand for our market-leading products and services.”
