Taylor, Michigan (November 2, 2004) - Masco Corporation (NYSE: MAS)
today reported that net sales from continuing operations for the third
quarter ended September 30, 2004 increased 12 percent, primarily from
organic growth, to a quarterly record $3.2 billion compared with $2.8
billion for the same period in 2003. The Company's strong third quarter
performance benefited from market share gains, new products and
positive economic conditions impacting the new home construction and
home improvement markets.
Income from continuing operations for the third quarter of 2004 was $289
million compared with $258 million for the same period in 2003.
Earnings from continuing operations increased to a third quarter record
of $.64 per common share compared with $.53 per common share for the
2003 third quarter.
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 $2.31 to
$2.35 per common share. This new guidance represents an increase from
the previous guidance of $2.25 to $2.30 per common share. The Company
anticipates that fourth quarter 2004 earnings from continuing operations
will be in a range of $.50 to $.54 per common share, compared with
fourth quarter 2003 earnings of $.32 per common share, which included a
non-cash charge for goodwill impairment of $.09 per common share. The
fourth quarter is seasonally one of the Company's lowest quarters in
terms of sales and earnings.
The new earnings guidance includes the benefit of recent common share
repurchases and continues to reflect increases in a number of operating
expenses, including such items as certain material, freight, energy and
insurance costs, as well as costs and expenses associated with complying
with the new requirements of the Sarbanes-Oxley Legislation. The
year's guidance also includes income related to the Behr litigation of
$.04 per common share in the first nine months of 2004 (principally in
the first half), but excludes any fourth quarter Behr litigation income
(as such amounts cannot be predicted), any gains or charges for
businesses to be divested, other possible unusual items and the impact
of share repurchases subsequent to September 30, 2004.
The Company previously announced, in the first quarter of 2004, the
planned disposition of several European businesses that are not core to
the Company's long-term growth strategy. During the third quarter of
2004, the Company completed the sale of two of these businesses, Jung
Pumpen in Germany and The Alvic Group in Spain. Total proceeds from the
sale of these businesses were $191 million. The Company recognized a
pre-tax, net gain on the disposition of these businesses of $108 million
($93 million or $.21 per common share, after tax). In addition, the
Company recognized an additional pre-tax charge of $31 million related
to the remaining businesses held for sale due to lower-than-expected
operating results as well as weaker-than-expected demand for the
businesses that the Company is divesting (these items are included in
discontinued operations). During the third quarter of 2003, the Company
recognized a pre-tax gain from the sale of businesses aggregating
approximately $91 million and also $6 million from the operating results
of those businesses (aggregating $.12 per common share, after tax;
these items are included in discontinued operations). Including
discontinued operations, net income for the 2004 third quarter increased
to $359 million compared with $319 million for the 2003 third quarter,
and earnings increased to $.80 per common share compared with $.65 per
common share for the third quarter of 2003.
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 November 2, 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 (719) 457-2680 (confirmation #908324). 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 #908324) approximately two hours after the
end of the call and will continue through November 9, 2004.
Masco Corporation's press releases and other information are available
through the Company's toll free number, 1-888-MAS-NEWS, or under the
Investor Relations section of Masco's website at www.masco.com.
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 the
Company's products, markets and conditions, which could affect the
Company's 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.
Click Here for Financial Information.
Contact:
Samuel Cypert
313-792-6646