Masco Corporation Highlights:
First Quarter 2006
- Net sales from continuing operations increased nine percent to a first quarter record $3.2 billion.
- Income from continuing operations was $219 million or $.53 per
common share, excluding costs and charges associated with the Plumbing
Products segment; including such charges, income was $208 million or
$.51 per common share.
- The Company returned $408 million to shareholders through share repurchases and dividends.
- The quarterly dividend was increased by 10 percent, from $.20
to $.22 per common share, making 2006 the 48th consecutive year in which
dividends have been increased.
- The Company had approximately $800 million in cash and marketable securities at March 31.
Taylor, Michigan (May 2, 2006) - Masco Corporation (NYSE: MAS) today
reported that net sales from continuing operations for the quarter ended
March 31, 2006 increased nine percent to a first quarter record of $3.2
billion compared with $2.9 billion for the first quarter of 2005.
North American sales increased 13 percent and International sales
decreased five percent. In local currencies, International sales
increased three percent compared with the first quarter of 2005.
Income from continuing operations before the cumulative effect of an
accounting change, net, and excluding costs and charges associated with
profit improvement programs in the Plumbing Products segment for the
first quarter of 2006, was $219 million or $.53 per common share
compared with $207 million or $.47 per common share for the comparable
period of 2005. The first quarters of 2006 and 2005 benefited from net
gains from the sale of financial investments of $.01 and $.06 per common
share, respectively.
Income from continuing operations before the cumulative effect of an
accounting change, net, for the first quarter of 2006 was $208 million
or $.51 per common share including $17 million pre-tax of costs and
charges associated with profit improvement programs in the Plumbing
Products segment.
Net income for the first quarter of 2006 was $204 million or $.50 per
common share after giving recognition to the cumulative effect of an
accounting change, net, of $3 million or $.01 per common share related
to share-based compensation for stock appreciation rights for foreign
operations. Net income for the first quarter of 2005 was $231 million or
$.52 per common share which included income of $24 million or $.06 per
common share related to discontinued operations.
As part of its profit improvement programs, the Company announced a
plant closure in the Plumbing Products segment in January 2006. The
Company incurred $17 million pre-tax or $.03 per common share, of costs
and charges associated with this plant closure and other profit
improvement programs in the Plumbing Products segment in the first
quarter of 2006 and, as previously announced, expects to incur
additional costs throughout 2006. Implementing these programs should
improve the Company's earnings outlook for 2007 and beyond.
The Company's 2006 first quarter results, seasonally the lowest of the
year, while better than expected, nevertheless continued to be adversely
affected by recent cost increases in commodity, energy and freight
costs, offset in part by selling price increases for certain products.
The Company has implemented and continues to implement additional
selling price increases for a number of its products and believes that
by the end of the first half of 2006, many of these cost increases will
be largely offset by such price increases.
Assuming no further significant commodity and energy cost increases and
excluding costs associated with its profit improvement programs and any
other items, the Company believes, based on current business trends,
that it will now achieve 2006 full-year earnings from continuing
operations in a range of $2.40 to $2.50 per common share compared to the
Company's previous guidance of $2.35 to $2.45 per common share.
Including planned costs and charges related to plant closures and other
profit improvement programs in the Plumbing Products segment, which are
presently expected, in aggregate, to approximate $70 million pre-tax
($.11 per common share) in 2006, earnings from continuing operations are
expected to be in a range of $2.29 to $2.39 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 Tuesday, May 2, 2006 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) 457-2641 (confirmation #3757634). 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 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 #3757634) approximately two hours after the end of
the call and will continue through May 9, 2006.
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 housing starts, commodity costs, 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.
Contact:
Maria Duey
313-792-5500
Click Here for Financial Information.