2015 Fourth Quarter Key Highlights
-
Sales for the fourth quarter increased 3 percent to $1.7 billion;
sales increased 6 percent excluding the impact of foreign currency
translation
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Adjusted operating profit grew 31 percent to $219 million
-
Adjusted operating profit margin for the quarter increased to 12.8
percent, a 280 basis point expansion
-
Adjusted EPS for the quarter grew 61 percent to $.29 per common share
TAYLOR, Mich.--(BUSINESS WIRE)--
Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers
of branded home improvement and building products, reported net sales
and adjusted operating profit growth in the fourth quarter of 2015.
Adjusted operating profit margin rose to 12.8 percent, representing a
280 basis point increase over the prior year.
2015 Fourth Quarter Commentary
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Compared to fourth quarter 2014, net sales from continuing operations
increased 3 percent to $1.7 billion. In local currency, North American
sales increased 6 percent and international sales increased 4 percent
-
Compared to fourth 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:
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Gross margins improved to 31.3 percent compared to 29.1 percent
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Operating margins improved to 12.8 percent compared to 10.0 percent
-
Income from continuing operations was $.29 per common share
compared to $.18 per common share
-
Income from continuing operations, as reported, was $.22 per common
share
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Liquidity at the end of the fourth quarter was approximately $1.7
billion
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1.8 million shares were repurchased in the fourth quarter
2015 Fourth Quarter Operating Segment Highlights
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Plumbing Products’ net sales increased 5 percent (10 percent excluding
the impact of foreign currency translation) driven by growth across
the segment
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Decorative Architectural Products’ net sales decreased 4 percent,
primarily due to challenging year-over-year comparisons driven by the
timing of inventory replenishments in 2014
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Cabinets and Related Products’ net sales increased 5 percent, fueled
by continued growth in the retail and dealer channels
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Other Specialty Products’ net sales increased 8 percent, led by the
strong performance of our North American windows business
“Our fourth quarter results illustrate our ability to deliver consistent
and profitable growth,” said Masco President and CEO, Keith Allman.
“Exceptional improvement in our U.S. cabinet business drove increased
revenue and profit. Our industry-leading plumbing businesses continued
their excellent performance trend and delivered another quarter of
outstanding results. In our Decorative Architectural Products segment,
the ongoing momentum of Behr Pro® and Liberty Hardware was
masked by challenging year-over-year comparisons, while our windows
businesses benefitted from increased demand in the U.S. and U.K.”
2015 Full Year Key Highlights
-
Sales for the full year increased 2 percent to $7.1 billion; sales
increased 6 percent excluding the impact of foreign currency
translation
-
Adjusted operating profit grew 19 percent to $927 million
-
Adjusted operating profit margin for the full year increased to 13
percent, a 190 basis point expansion
-
Adjusted EPS for the year grew 35 percent to $1.19 per common share
2015 Full Year Commentary
-
Compared to full-year 2014, net sales increased 2 percent to $7.1
billion. In local currency, North American sales increased 6 percent
and international sales increased 5 percent
-
Compared to full-year 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 profit margins were 31.6 percent compared to 29.9 percent
-
Operating profit margins were 13.0 percent compared to 11.1 percent
-
Income from continuing operations was $1.19 per common share
compared to $0.88 per common share
-
Income from continuing operations, as reported, was $1.03 per common
share compared to $2.28 per common share in 2014
-
Free cash flow was nearly $500 million
“2015 was a transformative year for Masco,” said Keith Allman. “On June
30, 2015, we successfully completed the spinoff of our services
businesses, transforming Masco into a branded home improvement and
building products company. Our clear strategy and focused execution
enabled us to reach a number of milestones. We achieved record sales at
Delta, Hansgrohe and Watkins and returned our U.S. cabinet business to
profitability by improving adjusted operating profit over $80 million.
We also strengthened our balance sheet by generating nearly half a
billion dollars in free cash flow and we ended the year with $1.7
billion of liquidity. Furthermore, we demonstrated our continued
commitment to return capital to shareholders by increasing our dividend
and repurchasing over 17 million shares.”
2016 Outlook
“We look forward to capitalizing on the momentum we’ve built this past
year,” continued Mr. Allman. “We remain confident in our ability to
successfully execute against our long term growth strategies by
leveraging our industry leading positions, robust innovation pipeline
and our Masco Operating System. We expect that these growth strategies,
coupled with our disciplined capital allocation approach, will continue
to create shareholder value in 2016.”
About Masco
Headquartered in Taylor, Mich., 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 2015 fourth 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, February 9, 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
19596574. 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 19596574. The telephone
replay will be available approximately two hours after the end of the
call and continue through March 9, 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.
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Source: Masco Corporation