Taylor, Michigan (May 3, 2004) - Masco Corporation (NYSE: MAS) today
reported net sales from continuing operations for the first quarter
ended March 31, 2004 increased 19 percent to a first quarter record $2.8
billion compared with $2.4 billion for the first quarter of 2003.
Income from continuing operations for the first quarter of 2004 was $241
million compared with $158 million in the first quarter of 2003.
Earnings from continuing operations increased to a first quarter record
$.52 per common share compared with $.30 per common share for the 2003
first quarter.
Results for the first quarter 2004 and 2003 include income related to
adjustments of the Behr litigation accrual of $.03 and $.02 per common
share, after tax, respectively, and incremental income from financial
investments of $.03 per common share, after tax compared with first
quarter 2003.
The Company previously announced the planned disposition of several
European businesses that are not core to the Company's long-term growth
strategy. These businesses had combined 2003 net sales in excess of $350
million and the Company expects net proceeds from the dispositions to
exceed $300 million. The dispositions are expected to be completed
within the next twelve months. First quarter 2004 results include an
after-tax charge aggregating $76 million ($.16 per common share) to
reflect those businesses that are expected to be divested at a loss, and
after-tax income from their operations of approximately $4 million,
both of which are included in discontinued operations. Any gains
resulting from the disposition of individual businesses, which are
expected later this year, will be recognized as such transactions are
completed and are expected to substantially offset the first quarter
2004 charge. Including these discontinued operations and the anticipated
loss on the disposition of certain of these businesses, net income for
the quarter increased to $168 million compared with $166 million for the
2003 first quarter; earnings increased to $.36 per common share
compared with $.32 per common share for the 2003 first quarter.
The Company's strong first quarter performance, including 19 percent
organic sales growth, benefited from market share gains, new products
and positive economic conditions impacting new home construction and
home improvement markets. First quarter 2003 operating performance was
negatively impacted by adverse weather conditions which reduced demand
for certain of the Company's products.
The Company continues to experience better than expected sales
performance thus far in 2004, and, based on current business trends,
believes that it will achieve record sales and earnings for 2004 with
full-year earnings from continuing operations in a range of $2.00 to
$2.10 per common share. The new earnings guidance represents an increase
from the previous guidance of $1.80 to $1.90 per common share. This
year's new earnings guidance includes the benefit of recent common share
repurchases and reflects increases in certain operating expenses,
including such items as energy, insurance and certain material and
freight costs, and excludes first quarter income related to the Behr
litigation and the charge for businesses to be divested. The earnings
projection does not reflect any potential additional income related to
the Behr litigation for the remainder of 2004, as such amounts cannot be
predicted.
Based on current business trends, the Company anticipates that second
quarter 2004 earnings from continuing operations will be in a range of
$.50 to $.53 per common share compared with second quarter 2003 earnings
of $.44 per common share.
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.
A conference call regarding items contained in this release is
scheduled for Monday, May 3, 2004 at 11:00 a.m. ET. Participants in the
call are asked to register five to ten minutes prior to the scheduled
start time by dialing (913) 981-4910 (confirmation #423996). The
conference call will be webcast simultaneously on the Company's website
at www.masco.com and supplemental
material, including the financial data referred to on the call and a
reconciliation of all non-GAAP information provided on the call, will
also be available on the website. A replay of the call will be available
on Masco's website or by phone by dialing (719) 457-0820 (replay access
code #423996) approximately two hours after the end of the call and
will continue through May 10, 2004.
Masco Corporation's press releases and other information are
available through the Company's toll free number, 1-888-MAS-NEWS, or you
may visit Masco's website at www.masco.com. For press releases, click on "Investor Relations" and then on "Link to News Center."
Statements contained herein may include certain forward-looking
statements regarding Masco's future sales, earnings growth potential and
other developments. Actual results may vary materially because of
external factors such as interest rate fluctuations, changes in consumer
spending and other factors over which management has no control. The
Company believes that certain non-GAAP performance measures and ratios,
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 our
products, markets and conditions, which could affect our future
performance, is contained in the Company's filings with the Securities
and Exchange Commission and is available on Masco's website at www.masco.com.
Masco undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events or
otherwise.
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