Masco Corporation Highlights:
First Quarter 2005
- Net sales from continuing operations increased six percent to a record
$3.0 billion.
- Income from continuing operations was $212 million or $.48 per common share.
- The Company returned $545 million to shareholders through share repurchases and dividends.
- The quarterly dividend was increased by 11 percent, from $.18
to $.20 per common share, marking the 47th consecutive year in which
dividends have been increased.
- The Board of Directors authorized the repurchase of up to an additional 50 million shares of common stock.
- The Company had over $1 billion in cash and marketable securities at March 31, 2005.
Taylor, Michigan (May 3, 2005) - Masco Corporation (NYSE: MAS) today
reported that net sales from continuing operations for the quarter ended
March 31, 2005 increased six percent to a first quarter record of $3.0
billion compared with $2.8 billion for the first quarter of 2004.
Income from continuing operations for the first quarter of 2005 was $212
million or $.48 per common share compared with $241 million or $.52 per
common share for the comparable period of 2004. Results for the first
quarter of 2005 benefited from other income, principally net gains from
the sale of financial investments, of $.06 per common share. In
addition, first quarter 2005 results benefited from a reduction in the
Company's tax rate of $.02 per common share, which offset currency
translation losses of $.02 per common share. The first quarter of 2004
benefited from other income, principally net gains from the sale of
financial investments, of $.07 per common share and income related to
the Behr litigation of $.03 per common share.
The Company previously announced, in the first quarter of 2004, the
planned disposition of several European businesses that were not core to
the Company's long-term growth strategy. First quarter 2004 results
included an after-tax charge of $.16 per common share to reflect those
businesses expected to be divested at a loss. During the first quarter
of 2005, the Company completed the disposition process with the
additional sale of two of these businesses realizing an after-tax net
gain of $.04 per common share. Including the results related to the
European businesses disposed, which have been treated as discontinued
operations, net income for the first quarter of 2005 increased to $231
million compared with $168 million for the 2004 first quarter; earnings
increased to $.52 per common share for the first quarter of 2005
compared with $.36 per common share for the 2004 first quarter.
The Company's 2005 first quarter results, seasonally the lowest of the
year, were adversely affected by lower-than-expected consumer spending
impacting certain of its products sold through retail markets, product
mix, as well as recent increases in commodity, energy, and freight
costs, much of which have not yet been recovered due to the lag in
implementing selling price increases to customers. The Company expects
these conditions to continue at least through the second quarter of
2005.
If higher energy costs and recent trends indicating lower consumer
confidence and the related slowing in sales of certain retail products
continue, the Company believes that full-year results may be nearer to
the low end of its previously provided earnings guidance range for
continuing operations of $2.40 to $2.50 per common share.
Based on current business trends, the Company anticipates that second
quarter 2005 earnings from continuing operations will be in a range of
$.58 to $.62 per common share compared with second quarter 2004 earnings
of $.65 per common share (which included $.04 per common share of
previously disclosed other income, principally net gains from the sale
of financial investments).
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 Tuesday, May 3, 2005 at 1:00 p.m. ET. Participants in the call are
asked to register five to ten minutes prior to the scheduled start time
by dialing (719) 457-2681 (confirmation #3166416). 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 #3166416) approximately two hours after the
end of the call and will continue through May 10, 2005.
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