Key Highlights
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Sales increased 3 percent to $2 billion and increased 7 percent
excluding the effects of foreign currency translation
-
North American sales increased 5 percent; International sales
increased 10 percent in local currency
-
Adjusted operating profit increased 15 percent to $181 million
-
Adjusted EPS increased 43 percent to $.20 per common share
TAYLOR, Mich.--(BUSINESS WIRE)--
Masco Corporation (NYSE: MAS), 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
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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
Outlook
“We are pleased with our solid start to the year. Our businesses are
performing well and executing as planned,” continued Mr. 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.”
About Masco
Headquartered in Taylor, Michigan, Masco Corporation is one of the
world’s leading manufacturers of branded building products, as well as a
leading provider of services that include the installation of insulation
and other building products.
The 2015 first quarter supplemental material, including a presentation
in PDF format, is available on the Company’s website at www.masco.com.
Conference Call Details
A conference call regarding items contained in this release is scheduled
for Tuesday, April 28, 2015 at 8:00 a.m. ET. Participants in the call
are asked to register five to ten minutes prior to the scheduled start
time by dialing (855) 226-2726 (855-22MASCO) and from outside the U.S.
at (706) 679-3614. Please use the conference identification number
15309385. The conference call will be webcast simultaneously and in its
entirety through the Company’s website. Shareholders, media
representatives and others interested in Masco may participate in the
webcast by registering through the Investor Relations section on the
Company’s website.
A replay of the call will be available on Masco’s website or by phone by
dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406.
Please use the conference identification number 15309385. The telephone
replay will be available approximately two hours after the end of the
call and continue through May 23, 2015.
Safe Harbor Statement
Statements contained in this press release that reflect our views about
our future performance constitute “forward-looking statements” under the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as “believe,” “anticipate,”
“appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,”
“expect,” “assume,” “seek,” “forecast,” and similar references to future
periods. These views involve risks and uncertainties that are difficult
to predict and, accordingly, our actual results may differ materially
from the results discussed in our forward-looking statements. We caution
you against relying on any of these forward-looking statements. Our
future performance may be affected by our reliance on new home
construction and home improvement, our reliance on key customers, the
cost and availability of raw materials, uncertainty in the international
economy, shifts in consumer preferences and purchasing practices, our
ability to improve our underperforming businesses, our ability to
maintain our competitive position in our industries, risks associated
with the proposed spin-off of our Services Business, our ability to
realize the expected benefits of the spin-off, the timing and terms of
our share repurchase program, and our ability to reduce corporate
expense and simplify our organizational structure. We discuss many of
the risks we face in Item 1A, “Risk Factors” in our most recent Annual
Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q
and in other filings we make with the Securities and Exchange
Commission. Our forward-looking statements in this press release speak
only as of the date of this press release. Factors or events that could
cause our actual results to differ may emerge from time to time, and it
is not possible for us to predict all of them. Unless required by law,
we undertake no obligation to update publicly any forward-looking
statements as a result of new information, future events or otherwise.
The Company believes that the non-GAAP performance measures and ratios
that are contained herein, 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 is contained in the Company's
filings with the Securities and Exchange Commission and is available on
Masco's website at www.masco.com.
Source: Masco Corporation