Key Highlights
-
Sales for the second quarter increased 4 percent to $2.0 billion
-
Operating profit grew 20 percent to $335 million; adjusted operating
profit grew 22 percent to $342 million
-
Operating profit margin for the quarter increased to 16.7 percent, a
220 basis point expansion; adjusted operating profit margin for the
quarter increased to 17.1 percent, a 260 basis point expansion
-
Earnings per share for the quarter grew 45 percent to $0.45 per common
share; adjusted earnings per share for the quarter grew 21 percent to
$0.46 per common share
-
Board announces intent to increase annual dividend by $0.02 per share
to $0.40 per share, beginning in the fourth quarter
TAYLOR, Mich.--(BUSINESS WIRE)--
Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers
of branded home improvement and building products, reported strong net
sales and operating profit growth in the second quarter of 2016,
recording its highest second quarter operating margin since 2002.
“We continued our great start to 2016 with solid execution in the second
quarter,” said Masco’s President and CEO, Keith Allman. “Our Plumbing
segment in particular had an exceptional second quarter, with strong
top- and bottom-line performance both in North America and
internationally, and our Cabinetry segment continued to exceed
expectations as it executed against its strategic plan to optimize sales
mix and increase profitability. Additionally, we continued our
disciplined capital allocation by reducing debt by $400 million, as
planned, and returning nearly $120 million to shareholders through
dividends and share repurchases during the quarter.”
2016 Second Quarter Commentary
-
On a reported basis, compared to second quarter 2015:
-
Net sales from continuing operations increased 4 percent to $2.0
billion
-
In local currency, North American sales increased 3 percent and
international sales increased 9 percent
-
Gross margins improved to 35.0 percent from 33.0 percent
-
Operating margins improved to 16.7 percent from 14.5 percent
-
Income from continuing operations was $0.45 per common share,
which included the $40 million debt extinguishment cost incurred
during the quarter, compared to $0.31 per common share
-
Compared to second quarter 2015, 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 35.2 percent compared to 33.0 percent
-
Operating margins improved to 17.1 percent compared to 14.5 percent
-
Income from continuing operations was $0.46 per common share
compared to $0.38 per common share
-
Liquidity at the end of the second quarter was approximately $1.1
billion
-
2.8 million shares were repurchased in the second quarter
2016 Second Quarter Operating Segment Highlights
-
Plumbing Products’ net sales increased 9 percent (10 percent excluding
the impact of foreign currency translation), driven by growth in the
retail and wholesale channels
-
Decorative Architectural Products’ net sales matched last year, with
growth from paints and other coating products and builders’ hardware
offset by the timing and amount of promotions
-
Cabinetry Products’ net sales decreased 3 percent due to the exit of
lower margin business in the builder channel, which was partially
offset by growth and improved mix in the retail channel
-
Windows and Other Specialty Products’ net sales increased 3 percent (4
percent excluding the impact of foreign currency translation), led by
our North American windows business
Outlook
“The fundamental demand drivers of our end markets remain robust,” said
Allman. “Combined with these underlying fundamentals, our strong
performance this quarter is evidence that we continue to successfully
execute against our long-term growth strategies by leveraging our brand
portfolio, our industry-leading positions and our Masco Operating
System. Reflecting confidence in Masco’s future outlook, our Board of
Directors intends to increase our annual dividend by $0.02 per share to
$0.40 per share, beginning with the quarterly dividend to be paid in the
fourth quarter of 2016.”
About Masco
Headquartered in Taylor, Michigan, Masco Corporation is a global leader
in the design, manufacture and distribution of branded home improvement
and building products. Our portfolio of industry-leading brands includes
Behr® paint; Delta® and Hansgrohe® faucets, bath and shower fixtures;
KraftMaid® and Merillat® cabinets; Milgard® windows and doors; and Hot
Spring® spas. We leverage our powerful brands across product categories,
sales channels and geographies to create value for our customers and
shareholders. For more information about Masco Corporation, visit www.masco.com.
The 2016 second 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, July 26, 2016 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
34096856. 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 34096856. The telephone
replay will be available approximately two hours after the end of the
call and continue through August 26, 2016.
Safe Harbor Statement
This press release contains statements that reflect our views about our
future performance and 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. Our views about future performance 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 the levels of home improvement
activity and new home construction, our ability to maintain our strong
brands and to develop and introduce new and improved products, our
ability to maintain our competitive position in our industries, our
reliance on key customers, our ability to achieve the anticipated
benefits of our strategic initiatives, our ability to sustain the
performance of our cabinetry businesses, the cost and availability of
raw materials, our dependence on third party suppliers, and risks
associated with international operations and global strategies. These
and other factors are discussed in detail 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. The 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.
|
|
MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three Months and Six Months Ended June 30, 2016 and 2015
|
|
(in millions, except per common share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net sales
|
|
|
|
$
|
2,001
|
|
|
$
|
1,929
|
|
|
$
|
3,721
|
|
|
$
|
3,588
|
|
Cost of sales
|
|
|
|
1,301
|
|
|
1,292
|
|
|
2,452
|
|
|
2,456
|
|
Gross profit
|
|
|
|
700
|
|
|
637
|
|
|
1,269
|
|
|
1,132
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
365
|
|
|
358
|
|
|
700
|
|
|
688
|
|
Operating profit
|
|
|
|
335
|
|
|
279
|
|
|
569
|
|
|
444
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(87
|
)
|
|
(61
|
)
|
|
(143
|
)
|
|
(117
|
)
|
Other, net
|
|
|
|
5
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
|
|
|
(82
|
)
|
|
(58
|
)
|
|
(139
|
)
|
|
(113
|
)
|
Income from continuing operations before income taxes
|
|
|
|
253
|
|
|
221
|
|
|
430
|
|
|
331
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
(90
|
)
|
|
(102
|
)
|
|
(148
|
)
|
|
(142
|
)
|
Income from continuing operations
|
|
|
|
163
|
|
|
119
|
|
|
282
|
|
|
189
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net
|
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(1
|
)
|
Net income
|
|
|
|
163
|
|
|
115
|
|
|
282
|
|
|
188
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
13
|
|
|
10
|
|
|
23
|
|
|
19
|
|
Net income attributable to Masco Corporation
|
|
|
|
$
|
150
|
|
|
$
|
105
|
|
|
$
|
259
|
|
|
$
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share attributable to Masco Corporation (diluted):
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
0.45
|
|
|
$
|
0.31
|
|
|
$
|
0.77
|
|
|
$
|
0.48
|
|
Loss from discontinued operations, net
|
|
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
Net income
|
|
|
|
$
|
0.45
|
|
|
$
|
0.30
|
|
|
$
|
0.77
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding
|
|
|
|
331
|
|
|
344
|
|
|
333
|
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Masco Corporation:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
150
|
|
|
$
|
109
|
|
|
$
|
259
|
|
|
$
|
170
|
|
Loss from discontinued operations, net
|
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(1
|
)
|
Net income attributable to Masco Corporation
|
|
|
|
$
|
150
|
|
|
$
|
105
|
|
|
$
|
259
|
|
|
$
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months and Six Months Ended June 30, 2016 and 2015
|
|
(in millions, except per common share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Gross Profit, Selling, General and
Administrative Expenses, and Operating Profit Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
2,001
|
|
|
$
|
1,929
|
|
|
$
|
3,721
|
|
|
$
|
3,588
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported
|
|
|
|
$
|
700
|
|
|
$
|
637
|
|
|
$
|
1,269
|
|
|
$
|
1,132
|
|
Rationalization charges
|
|
|
|
5
|
|
|
—
|
|
|
6
|
|
|
1
|
|
Gross profit, as adjusted
|
|
|
|
$
|
705
|
|
|
$
|
637
|
|
|
$
|
1,275
|
|
|
$
|
1,133
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin, as reported
|
|
|
|
35.0
|
%
|
|
33.0
|
%
|
|
34.1
|
%
|
|
31.5
|
%
|
Gross margin, as adjusted
|
|
|
|
35.2
|
%
|
|
33.0
|
%
|
|
34.3
|
%
|
|
31.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses, as reported
|
|
|
|
$
|
365
|
|
|
$
|
358
|
|
|
$
|
700
|
|
|
$
|
688
|
|
Rationalization charges
|
|
|
|
2
|
|
|
1
|
|
|
4
|
|
|
6
|
|
Selling, general and administrative expenses, as adjusted
|
|
|
|
$
|
363
|
|
|
$
|
357
|
|
|
$
|
696
|
|
|
$
|
682
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses as percent of net
sales, as reported
|
|
|
|
18.2
|
%
|
|
18.6
|
%
|
|
18.8
|
%
|
|
19.2
|
%
|
Selling, general and administrative expenses as percent of net
sales, as adjusted
|
|
|
|
18.1
|
%
|
|
18.5
|
%
|
|
18.7
|
%
|
|
19.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
335
|
|
|
$
|
279
|
|
|
$
|
569
|
|
|
$
|
444
|
|
Rationalization charges
|
|
|
|
7
|
|
|
1
|
|
|
10
|
|
|
7
|
|
Operating profit, as adjusted
|
|
|
|
$
|
342
|
|
|
$
|
280
|
|
|
$
|
579
|
|
|
$
|
451
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported
|
|
|
|
16.7
|
%
|
|
14.5
|
%
|
|
15.3
|
%
|
|
12.4
|
%
|
Operating margin, as adjusted
|
|
|
|
17.1
|
%
|
|
14.5
|
%
|
|
15.6
|
%
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes, as reported
|
|
|
|
$
|
253
|
|
|
$
|
221
|
|
|
$
|
430
|
|
|
$
|
331
|
|
Rationalization charges
|
|
|
|
7
|
|
|
1
|
|
|
10
|
|
|
7
|
|
Gain from auction rate securities
|
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
Gains from private equity funds, net
|
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
Earnings from equity investments, net
|
|
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
Income from continuing operations before income taxes, as adjusted
|
|
|
|
258
|
|
|
218
|
|
|
437
|
|
|
332
|
|
Tax at 36% rate
|
|
|
|
(93
|
)
|
|
(78
|
)
|
|
(157
|
)
|
|
(120
|
)
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
13
|
|
|
10
|
|
|
23
|
|
|
19
|
|
Income from continuing operations, as adjusted
|
|
|
|
$
|
152
|
|
|
$
|
130
|
|
|
$
|
257
|
|
|
$
|
193
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share, as adjusted
|
|
|
|
$
|
0.46
|
|
|
$
|
0.38
|
|
|
$
|
0.77
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding
|
|
|
|
331
|
|
|
344
|
|
|
333
|
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
Condensed Consolidated Balance Sheets and
Other Financial Data - Unaudited
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
Balance Sheet
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash investments
|
|
|
|
|
$
|
956
|
|
|
$
|
1,468
|
Short-term bank deposits
|
|
|
|
|
135
|
|
|
248
|
Receivables
|
|
|
|
|
1,113
|
|
|
853
|
Inventories
|
|
|
|
|
765
|
|
|
687
|
Prepaid expenses and other
|
|
|
|
|
88
|
|
|
72
|
Total Current Assets
|
|
|
|
|
3,057
|
|
|
3,328
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
1,039
|
|
|
1,027
|
Goodwill
|
|
|
|
|
840
|
|
|
839
|
Other intangible assets, net
|
|
|
|
|
156
|
|
|
160
|
Other assets
|
|
|
|
|
232
|
|
|
310
|
Total Assets
|
|
|
|
|
$
|
5,324
|
|
|
$
|
5,664
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
913
|
|
|
$
|
749
|
Notes payable
|
|
|
|
|
3
|
|
|
1,004
|
Accrued liabilities
|
|
|
|
|
716
|
|
|
752
|
Total Current Liabilities
|
|
|
|
|
1,632
|
|
|
2,505
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
2,993
|
|
|
2,403
|
Other liabilities
|
|
|
|
|
629
|
|
|
698
|
Total Liabilities
|
|
|
|
|
5,254
|
|
|
5,606
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
70
|
|
|
58
|
Total Liabilities and Equity
|
|
|
|
|
$
|
5,324
|
|
|
$
|
5,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
June 30, 2016
|
|
June 30, 2015
|
Other Financial Data
|
|
|
|
|
|
|
|
Working Capital Days
|
|
|
|
|
|
|
|
Receivable days
|
|
|
|
|
50
|
|
|
51
|
|
Inventory days
|
|
|
|
|
57
|
|
|
58
|
|
Payable days
|
|
|
|
|
71
|
|
|
68
|
|
Working capital
|
|
|
|
|
$
|
965
|
|
|
$
|
995
|
|
Working capital as a % of sales (LTM)
|
|
|
|
|
13.3
|
%
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
Condensed Consolidated Statements of Cash Flows
and Other Financial Data - Unaudited
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2016
|
|
2015
|
Cash Flows From (For) Operating Activities:
|
|
|
|
|
|
|
Cash provided by operating activities
|
|
|
|
$
|
357
|
|
|
$
|
355
|
|
Working capital changes
|
|
|
|
(243
|
)
|
|
(216
|
)
|
Net cash from operating activities
|
|
|
|
114
|
|
|
139
|
|
|
|
|
|
|
|
|
Cash Flows From (For) Financing Activities:
|
|
|
|
|
|
|
Retirement of notes
|
|
|
|
(1,300
|
)
|
|
(500
|
)
|
Purchase of Company common stock
|
|
|
|
(168
|
)
|
|
(207
|
)
|
Cash dividends paid
|
|
|
|
(63
|
)
|
|
(62
|
)
|
Dividend paid to noncontrolling interest
|
|
|
|
(31
|
)
|
|
(36
|
)
|
Cash distributed to TopBuild Corp.
|
|
|
|
—
|
|
|
(63
|
)
|
Issuance of TopBuild Corp. debt
|
|
|
|
—
|
|
|
200
|
Issuance of notes, net of issuance costs
|
|
|
|
889
|
|
|
497
|
|
Issuance of Company common stock
|
|
|
|
1
|
|
|
—
|
|
Excess tax benefit from stock-based compensation
|
|
|
|
12
|
|
|
15
|
|
Credit Agreement and other financing costs
|
|
|
|
—
|
|
|
(3
|
)
|
Decrease in debt, net
|
|
|
|
(2
|
)
|
|
—
|
|
Net cash for financing activities
|
|
|
|
(662
|
)
|
|
(159
|
)
|
|
|
|
|
|
|
|
Cash Flows From (For) Investing Activities:
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(79
|
)
|
|
(70
|
)
|
Other, net
|
|
|
|
124
|
|
|
10
|
|
Net cash from (for) investing activities
|
|
|
|
45
|
|
|
(60
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash investments
|
|
|
|
(9
|
)
|
|
(6
|
)
|
|
|
|
|
|
|
|
Cash and Cash Investments:
|
|
|
|
|
|
|
Decrease for the period
|
|
|
|
(512
|
)
|
|
(86
|
)
|
At January 1
|
|
|
|
1,468
|
|
|
1,383
|
|
At June 30
|
|
|
|
$
|
956
|
|
|
$
|
1,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30,
|
|
|
|
|
2016
|
|
2015
|
Liquidity
|
|
|
|
|
|
|
Cash and cash investments
|
|
|
|
$
|
956
|
|
|
$
|
1,297
|
|
Short-term bank deposits
|
|
|
|
135
|
|
|
210
|
|
Total Liquidity
|
|
|
|
$
|
1,091
|
|
|
$
|
1,507
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months and Six Months Ended June 30, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Plumbing Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
923
|
|
|
$
|
846
|
|
|
9
|
%
|
|
$
|
1,736
|
|
|
$
|
1,642
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
188
|
|
|
$
|
138
|
|
|
|
|
$
|
317
|
|
|
$
|
249
|
|
|
|
Operating margin, as reported
|
|
|
|
20.4
|
%
|
|
16.3
|
%
|
|
|
|
18.3
|
%
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
4
|
|
|
—
|
|
|
|
|
6
|
|
|
1
|
|
|
|
Operating profit, as adjusted
|
|
|
|
192
|
|
|
138
|
|
|
|
|
323
|
|
|
250
|
|
|
|
Operating margin, as adjusted
|
|
|
|
20.8
|
%
|
|
16.3
|
%
|
|
|
|
18.6
|
%
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
14
|
|
|
14
|
|
|
|
|
28
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
206
|
|
|
$
|
152
|
|
|
|
|
$
|
351
|
|
|
$
|
278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decorative Architectural Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
620
|
|
|
$
|
622
|
|
|
—
|
%
|
|
$
|
1,113
|
|
|
$
|
1,073
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
139
|
|
|
$
|
133
|
|
|
|
|
$
|
244
|
|
|
$
|
216
|
|
|
|
Operating margin, as reported
|
|
|
|
22.4
|
%
|
|
21.4
|
%
|
|
|
|
21.9
|
%
|
|
20.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
4
|
|
|
4
|
|
|
|
|
8
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
$
|
143
|
|
|
$
|
137
|
|
|
|
|
$
|
252
|
|
|
$
|
224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cabinetry Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
261
|
|
|
$
|
269
|
|
|
(3
|
)%
|
|
$
|
497
|
|
|
$
|
518
|
|
|
(4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
34
|
|
|
$
|
15
|
|
|
|
|
$
|
58
|
|
|
$
|
11
|
|
|
|
Operating margin, as reported
|
|
|
|
13.0
|
%
|
|
5.6
|
%
|
|
|
|
11.7
|
%
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
3
|
|
|
—
|
|
|
|
|
4
|
|
|
2
|
|
|
|
Operating profit, as adjusted
|
|
|
|
37
|
|
|
15
|
|
|
|
|
62
|
|
|
13
|
|
|
|
Operating margin, as adjusted
|
|
|
|
14.2
|
%
|
|
5.6
|
%
|
|
|
|
12.5
|
%
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
5
|
|
|
6
|
|
|
|
|
10
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
42
|
|
|
$
|
21
|
|
|
|
|
$
|
72
|
|
|
$
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months and Six Months Ended June 30, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Windows and Other Specialty Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
197
|
|
|
$
|
192
|
|
|
3
|
%
|
|
$
|
375
|
|
|
$
|
355
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) profit, as reported
|
|
|
|
$
|
(2
|
)
|
|
$
|
21
|
|
|
|
|
$
|
1
|
|
|
$
|
27
|
|
|
|
Operating margin, as reported
|
|
|
|
(1.0
|
)%
|
|
10.9
|
%
|
|
|
|
0.3
|
%
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
5
|
|
|
4
|
|
|
|
|
10
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
$
|
3
|
|
|
$
|
25
|
|
|
|
|
$
|
11
|
|
|
$
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
2,001
|
|
|
$
|
1,929
|
|
|
4
|
%
|
|
$
|
3,721
|
|
|
$
|
3,588
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment
|
|
|
|
$
|
359
|
|
|
$
|
307
|
|
|
|
|
$
|
620
|
|
|
$
|
503
|
|
|
|
General corporate expense, net (GCE)
|
|
|
|
(24
|
)
|
|
(28
|
)
|
|
|
|
(51
|
)
|
|
(59
|
)
|
|
|
Operating profit, as reported
|
|
|
|
335
|
|
|
279
|
|
|
|
|
569
|
|
|
444
|
|
|
|
Operating margin, as reported
|
|
|
|
16.7
|
%
|
|
14.5
|
%
|
|
|
|
15.3
|
%
|
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment
|
|
|
|
7
|
|
|
—
|
|
|
|
|
10
|
|
|
3
|
|
|
|
Rationalization charges - GCE
|
|
|
|
—
|
|
|
1
|
|
|
|
|
—
|
|
|
4
|
|
|
|
Operating profit, as adjusted
|
|
|
|
342
|
|
|
280
|
|
|
|
|
579
|
|
|
451
|
|
|
|
Operating margin, as adjusted
|
|
|
|
17.1
|
%
|
|
14.5
|
%
|
|
|
|
15.6
|
%
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment
|
|
|
|
28
|
|
|
28
|
|
|
|
|
56
|
|
|
57
|
|
|
|
Depreciation and amortization - non-operating
|
|
|
|
6
|
|
|
3
|
|
|
|
|
10
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
376
|
|
|
$
|
311
|
|
|
|
|
$
|
645
|
|
|
$
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
North American and International Data - Unaudited
For the Three Months and Six Months Ended June 30, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
North American
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,598
|
|
|
$
|
1,554
|
|
|
3
|
%
|
|
$
|
2,948
|
|
|
$
|
2,836
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
299
|
|
|
$
|
260
|
|
|
|
|
$
|
514
|
|
|
$
|
411
|
|
|
|
Operating margin, as reported
|
|
|
|
18.7
|
%
|
|
16.7
|
%
|
|
|
|
17.4
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
5
|
|
|
—
|
|
|
|
|
7
|
|
|
2
|
|
|
|
Operating profit, as adjusted
|
|
|
|
304
|
|
|
260
|
|
|
|
|
521
|
|
|
413
|
|
|
|
Operating margin, as adjusted
|
|
|
|
19.0
|
%
|
|
16.7
|
%
|
|
|
|
17.7
|
%
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
19
|
|
|
19
|
|
|
|
|
38
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
323
|
|
|
$
|
279
|
|
|
|
|
$
|
559
|
|
|
$
|
452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
403
|
|
|
$
|
375
|
|
|
7
|
%
|
|
$
|
773
|
|
|
$
|
752
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
60
|
|
|
$
|
47
|
|
|
|
|
$
|
106
|
|
|
$
|
92
|
|
|
|
Operating margin, as reported
|
|
|
|
14.9
|
%
|
|
12.5
|
%
|
|
|
|
13.7
|
%
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
2
|
|
|
—
|
|
|
|
|
3
|
|
|
1
|
|
|
|
Operating profit, as adjusted
|
|
|
|
62
|
|
|
47
|
|
|
|
|
109
|
|
|
93
|
|
|
|
Operating margin, as adjusted
|
|
|
|
15.4
|
%
|
|
12.5
|
%
|
|
|
|
14.1
|
%
|
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
9
|
|
|
9
|
|
|
|
|
18
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
71
|
|
|
$
|
56
|
|
|
|
|
$
|
127
|
|
|
$
|
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
2,001
|
|
|
$
|
1,929
|
|
|
4
|
%
|
|
$
|
3,721
|
|
|
$
|
3,588
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment
|
|
|
|
$
|
359
|
|
|
$
|
307
|
|
|
|
|
$
|
620
|
|
|
$
|
503
|
|
|
|
General corporate expense, net (GCE)
|
|
|
|
(24
|
)
|
|
(28
|
)
|
|
|
|
(51
|
)
|
|
(59
|
)
|
|
|
Operating profit, as reported
|
|
|
|
335
|
|
|
279
|
|
|
|
|
569
|
|
|
444
|
|
|
|
Operating margin, as reported
|
|
|
|
16.7
|
%
|
|
14.5
|
%
|
|
|
|
15.3
|
%
|
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment
|
|
|
|
7
|
|
|
—
|
|
|
|
|
10
|
|
|
3
|
|
|
|
Rationalization charges - GCE
|
|
|
|
—
|
|
|
1
|
|
|
|
|
—
|
|
|
4
|
|
|
|
Operating profit, as adjusted
|
|
|
|
342
|
|
|
280
|
|
|
|
|
579
|
|
|
451
|
|
|
|
Operating margin, as adjusted
|
|
|
|
17.1
|
%
|
|
14.5
|
%
|
|
|
|
15.6
|
%
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment
|
|
|
|
28
|
|
|
28
|
|
|
|
|
56
|
|
|
57
|
|
|
|
Depreciation and amortization - non-operating
|
|
|
|
6
|
|
|
3
|
|
|
|
|
10
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
376
|
|
|
$
|
311
|
|
|
|
|
$
|
645
|
|
|
$
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160726005313/en/
Source: Masco Corporation