Key Highlights
-
Sales for the second quarter increased 3 percent to $2.1 billion; in
local currencies, sales increased 4 percent
-
Operating profit for the quarter grew 7 percent to $357 million;
adjusted operating profit grew 4 percent to $357 million
-
Earnings per share for the quarter grew 9 percent to $0.49 per common
share; adjusted earnings per share grew 30 percent to $0.60 per common
share
-
Updating our 2017 earnings per share target range to $1.93 to $2.00
from $1.90 to $2.00 per common share
-
Board announces intent to increase annual dividend by $0.02 per share
to $0.42 per share, beginning in the fourth quarter
LIVONIA, Mich.--(BUSINESS WIRE)--
Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers
of branded home improvement and building products, reported solid net
sales and operating profit growth in the second quarter of 2017.
“We continued to execute on our strategic plan in the second quarter,”
said Masco President and CEO, Keith Allman. “Our Plumbing Products and
Decorative Architectural Products segments once again delivered strong
results, and I am extremely pleased with the progress we have made in
our Windows business. In our Cabinetry Products segment, we exited
certain lower margin builder business and are now pivoting towards
growth. Additionally, we continued our disciplined capital allocation by
returning approximately $74 million to shareholders through dividends
and share repurchases in the quarter.”
2017 Second Quarter Commentary
-
On a reported basis, compared to second quarter 2016:
-
Net sales increased 3 percent to $2.1 billion
-
In local currency, North American sales and international sales
increased 4 percent
-
Gross margins improved 80 basis points to 35.8 percent from 35.0
percent
-
Operating margins improved 70 basis points to 17.4 percent from
16.7 percent
-
Net income was $0.49 per common share compared to $0.45 per common
share
-
Compared to second quarter 2016, results for key financial measures,
as adjusted for certain items (see Exhibit A) and with a normalized
tax rate of 34 percent (36 percent in 2016), were as follows:
-
Gross margins improved to 35.8 percent compared to 35.2 percent
-
Operating margins improved to 17.4 percent compared to 17.1 percent
-
Net income was $0.60 per common share, compared to $0.46 per
common share (which included $40 million, or approximately $0.08
per share, in debt extinguishment costs in 2016)
-
Liquidity at the end of the second quarter was approximately $1.1
billion
-
1.2 million shares were repurchased in the second quarter
2017 Second Quarter Operating Segment Highlights
-
Plumbing Products’ net sales increased 3 percent (5 percent excluding
the impact of foreign currency translation), driven by North America
and international growth
-
Decorative Architectural Products’ net sales increased 5 percent with
growth from builders’ hardware and Behr’s pro initiative
-
Cabinetry Products’ net sales decreased 4 percent (3 percent excluding
the impact of foreign currency translation) due to the previously
announced exit of lower margin business in the builder channel and
lower sales in our United Kingdom cabinet operation
-
Windows and Other Specialty Products’ net sales increased 4 percent.
Excluding the impact of foreign currency translation, net sales
increased 7 percent, driven by strong sales of windows in North America
Outlook
“As we presented during our Investor Day in May, the demand drivers
underlying our business are strong and very supportive of continued,
long-term growth,” said Allman. “We are confident in our plans to
leverage our strong brands, industry leading positions, and our Masco
Operating System to capitalize on these robust, long-term demand
drivers. We are pleased with our performance this year, and accordingly,
we are updating our 2017 earnings per share target to the range of $1.93
to $2.00. Looking forward, we are committed to achieving our 2019
earnings per share target of $2.50 that we introduced at our Investor
Day. Reflecting confidence in our plans and Masco’s outlook, our Board
of Directors intends to increase our annual dividend by $0.02 per share
to $0.42 per share, beginning with the quarterly dividend to be paid in
the fourth quarter of 2017.”
About Masco
Headquartered in Livonia, 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 2017 second quarter supplemental material, including a presentation
in PDF format, is available on Masco’s website at www.masco.com.
Conference Call Details
A conference call regarding items contained in this release is scheduled
for Thursday, July 27, 2017 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
36385520. The conference call will be webcast simultaneously and in its
entirety through Masco’s website. Shareholders, media representatives
and others interested in Masco may participate in the webcast by
registering through the Investor Relations section on Masco’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 36385520. The telephone
replay will be available approximately two hours after the end of the
call and continue through August 27, 2017.
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 improve our
under-performing U.S. window business, 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, 2017 and 2016
|
|
(in millions, except per common share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net sales
|
|
|
$
|
2,057
|
|
|
$
|
2,001
|
|
|
$
|
3,834
|
|
|
$
|
3,721
|
|
Cost of sales
|
|
|
1,320
|
|
|
1,301
|
|
|
2,489
|
|
|
2,452
|
|
Gross profit
|
|
|
737
|
|
|
700
|
|
|
1,345
|
|
|
1,269
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
380
|
|
|
365
|
|
|
735
|
|
|
700
|
|
Operating profit
|
|
|
357
|
|
|
335
|
|
|
610
|
|
|
569
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(153
|
)
|
|
(87
|
)
|
|
(196
|
)
|
|
(143
|
)
|
Other, net
|
|
|
51
|
|
|
5
|
|
|
54
|
|
|
4
|
|
|
|
|
(102
|
)
|
|
(82
|
)
|
|
(142
|
)
|
|
(139
|
)
|
Income before income taxes
|
|
|
255
|
|
|
253
|
|
|
468
|
|
|
430
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
84
|
|
|
90
|
|
|
147
|
|
|
148
|
|
Net income
|
|
|
171
|
|
|
163
|
|
|
321
|
|
|
282
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
13
|
|
|
13
|
|
|
23
|
|
|
23
|
|
Net income attributable to Masco Corporation
|
|
|
$
|
158
|
|
|
$
|
150
|
|
|
$
|
298
|
|
|
$
|
259
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share attributable to Masco Corporation (diluted):
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.49
|
|
|
$
|
0.45
|
|
|
$
|
0.92
|
|
|
$
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding
|
|
|
319
|
|
|
331
|
|
|
320
|
|
|
333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
|
Exhibit A: Reconciliations - Unaudited
|
For the Three Months and Six Months Ended June 30, 2017 and 2016
|
|
(in millions, except per common share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Gross Profit, Selling, General and
Administrative Expenses, and Operating Profit Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
2,057
|
|
|
$
|
2,001
|
|
|
$
|
3,834
|
|
|
$
|
3,721
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported
|
|
|
$
|
737
|
|
|
$
|
700
|
|
|
$
|
1,345
|
|
|
$
|
1,269
|
|
Rationalization charges
|
|
|
—
|
|
|
5
|
|
|
2
|
|
|
6
|
|
Gross profit, as adjusted
|
|
|
$
|
737
|
|
|
$
|
705
|
|
|
$
|
1,347
|
|
|
$
|
1,275
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin, as reported
|
|
|
35.8
|
%
|
|
35.0
|
%
|
|
35.1
|
%
|
|
34.1
|
%
|
Gross margin, as adjusted
|
|
|
35.8
|
%
|
|
35.2
|
%
|
|
35.1
|
%
|
|
34.3
|
%
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses, as reported
|
|
|
$
|
380
|
|
|
$
|
365
|
|
|
$
|
735
|
|
|
$
|
700
|
|
Rationalization charges
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
4
|
|
Selling, general and administrative expenses, as adjusted
|
|
|
$
|
380
|
|
|
$
|
363
|
|
|
$
|
735
|
|
|
$
|
696
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses as percent of net
sales, as reported
|
|
|
18.5
|
%
|
|
18.2
|
%
|
|
19.2
|
%
|
|
18.8
|
%
|
Selling, general and administrative expenses as percent of net
sales, as adjusted
|
|
|
18.5
|
%
|
|
18.1
|
%
|
|
19.2
|
%
|
|
18.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
$
|
357
|
|
|
$
|
335
|
|
|
$
|
610
|
|
|
$
|
569
|
|
Rationalization charges
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
10
|
|
Operating profit, as adjusted
|
|
|
$
|
357
|
|
|
$
|
342
|
|
|
$
|
612
|
|
|
$
|
579
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported
|
|
|
17.4
|
%
|
|
16.7
|
%
|
|
15.9
|
%
|
|
15.3
|
%
|
Operating margin, as adjusted
|
|
|
17.4
|
%
|
|
17.1
|
%
|
|
16.0
|
%
|
|
15.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as reported
|
|
|
$
|
255
|
|
|
$
|
253
|
|
|
$
|
468
|
|
|
$
|
430
|
|
Rationalization charges
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
10
|
|
(Gain) from auction rate securities
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
(Gains) from private equity funds, net
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
(Earnings) from equity investments, net
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
Loss on extinguishment of debt
|
|
|
107
|
|
|
—
|
|
|
107
|
|
|
—
|
|
(Gain) on sale of business
|
|
|
(49
|
)
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
Income before income taxes, as adjusted
|
|
|
311
|
|
|
258
|
|
|
525
|
|
|
437
|
|
Tax at 34% rate (36% for 2016)
|
|
|
(106
|
)
|
|
(93
|
)
|
|
(179
|
)
|
|
(157
|
)
|
Less: Net income attributable to noncontrolling interest
|
|
|
13
|
|
|
13
|
|
|
23
|
|
|
23
|
|
Net income, as adjusted
|
|
|
$
|
192
|
|
|
$
|
152
|
|
|
$
|
323
|
|
|
$
|
257
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share, as adjusted
|
|
|
$
|
0.60
|
|
|
$
|
0.46
|
|
|
$
|
1.01
|
|
|
$
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding
|
|
|
319
|
|
|
331
|
|
|
320
|
|
|
333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
Outlook for the Twelve Months Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2017
|
|
|
|
|
|
|
Low End
|
|
High End
|
Outlook
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share
|
|
|
|
|
|
$
|
1.81
|
|
|
$
|
1.88
|
|
Loss on extinguishment of debt
|
|
|
|
|
|
0.22
|
|
|
0.22
|
|
(Gain) on sale of business
|
|
|
|
|
|
(0.10
|
)
|
|
(0.10
|
)
|
Net income per common share, as adjusted
|
|
|
|
|
|
$
|
1.93
|
|
|
$
|
2.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
Condensed Consolidated Balance Sheets and Other Financial Data
- Unaudited
June 30, 2017 and December 31, 2016
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
Balance Sheet
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash investments
|
|
|
|
|
$
|
992
|
|
|
$
|
990
|
|
Short-term bank deposits
|
|
|
|
|
144
|
|
|
201
|
|
Receivables
|
|
|
|
|
1,231
|
|
|
917
|
|
Inventories
|
|
|
|
|
850
|
|
|
712
|
|
Prepaid expenses and other
|
|
|
|
|
89
|
|
|
114
|
|
Total Current Assets
|
|
|
|
|
3,306
|
|
|
2,934
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
1,080
|
|
|
1,060
|
|
Goodwill
|
|
|
|
|
797
|
|
|
832
|
|
Other intangible assets, net
|
|
|
|
|
156
|
|
|
154
|
|
Other assets
|
|
|
|
|
150
|
|
|
157
|
|
Total Assets
|
|
|
|
|
$
|
5,489
|
|
|
$
|
5,137
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
960
|
|
|
$
|
800
|
|
Notes payable
|
|
|
|
|
117
|
|
|
2
|
|
Accrued liabilities
|
|
|
|
|
615
|
|
|
658
|
|
Total Current Liabilities
|
|
|
|
|
1,692
|
|
|
1,460
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
2,967
|
|
|
2,995
|
|
Other liabilities
|
|
|
|
|
760
|
|
|
785
|
|
Total Liabilities
|
|
|
|
|
5,419
|
|
|
5,240
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
70
|
|
|
(103
|
)
|
Total Liabilities and Equity
|
|
|
|
|
$
|
5,489
|
|
|
$
|
5,137
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30,
|
|
|
|
|
|
2017
|
|
2016
|
Other Financial Data
|
|
|
|
|
|
|
|
Working Capital Days
|
|
|
|
|
|
|
|
Receivable days
|
|
|
|
|
52
|
|
|
50
|
|
Inventory days
|
|
|
|
|
63
|
|
|
57
|
|
Payable days
|
|
|
|
|
72
|
|
|
71
|
|
Working capital
|
|
|
|
|
$
|
1,121
|
|
|
$
|
965
|
|
Working capital as a % of sales (LTM)
|
|
|
|
|
15.0
|
%
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
|
Condensed Consolidated Statements of Cash Flows and Other
Financial Data - Unaudited
|
For the Six Months Ended June 30, 2017 and 2016
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2017
|
|
2016
|
Cash Flows From (For) Operating Activities:
|
|
|
|
|
|
|
|
Cash provided by operating activities
|
|
|
|
|
$
|
536
|
|
|
$
|
433
|
|
Working capital changes
|
|
|
|
|
(381
|
)
|
|
(243
|
)
|
Net cash from operating activities
|
|
|
|
|
155
|
|
|
190
|
|
|
|
|
|
|
|
|
|
Cash Flows From (For) Financing Activities:
|
|
|
|
|
|
|
|
Retirement of notes
|
|
|
|
|
(535
|
)
|
|
(1,300
|
)
|
Purchase of Company common stock
|
|
|
|
|
(134
|
)
|
|
(168
|
)
|
Cash dividends paid
|
|
|
|
|
(64
|
)
|
|
(63
|
)
|
Dividend paid to noncontrolling interest
|
|
|
|
|
(35
|
)
|
|
(31
|
)
|
Issuance of notes, net of issuance costs
|
|
|
|
|
593
|
|
|
889
|
|
Debt extinguishment costs
|
|
|
|
|
(104
|
)
|
|
(40
|
)
|
Issuance of Company common stock
|
|
|
|
|
—
|
|
|
1
|
|
Employee withholding taxes paid on stock-based compensation
|
|
|
|
|
(27
|
)
|
|
(24
|
)
|
Increase (decrease) in debt, net
|
|
|
|
|
1
|
|
|
(2
|
)
|
Net cash for financing activities
|
|
|
|
|
(305
|
)
|
|
(738
|
)
|
|
|
|
|
|
|
|
|
Cash Flows From (For) Investing Activities:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(77
|
)
|
|
(79
|
)
|
Proceeds from disposition of business
|
|
|
|
|
126
|
|
|
—
|
|
Other, net
|
|
|
|
|
75
|
|
|
124
|
|
Net cash from investing activities
|
|
|
|
|
124
|
|
|
45
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash investments
|
|
|
|
|
28
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
Cash and Cash Investments:
|
|
|
|
|
|
|
|
Increase (decrease) for the period
|
|
|
|
|
2
|
|
|
(512
|
)
|
At January 1
|
|
|
|
|
990
|
|
|
1,468
|
|
At June 30
|
|
|
|
|
$
|
992
|
|
|
$
|
956
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30,
|
|
|
|
|
|
2017
|
|
2016
|
Liquidity
|
|
|
|
|
|
|
|
Cash and cash investments
|
|
|
|
|
$
|
992
|
|
|
$
|
956
|
|
Short-term bank deposits
|
|
|
|
|
144
|
|
|
135
|
|
Total Liquidity
|
|
|
|
|
$
|
1,136
|
|
|
$
|
1,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
|
Segment Data - Unaudited
|
For the Three Months and Six Months Ended June 30, 2017 and 2016
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Plumbing Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
949
|
|
|
$
|
923
|
|
|
3
|
%
|
|
$
|
1,812
|
|
|
$
|
1,736
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
198
|
|
|
$
|
188
|
|
|
|
|
$
|
354
|
|
|
$
|
317
|
|
|
|
Operating margin, as reported
|
|
|
|
20.9
|
%
|
|
20.4
|
%
|
|
|
|
19.5
|
%
|
|
18.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
—
|
|
|
4
|
|
|
|
|
—
|
|
|
6
|
|
|
|
Operating profit, as adjusted
|
|
|
|
198
|
|
|
192
|
|
|
|
|
|
354
|
|
|
323
|
|
|
|
Operating margin, as adjusted
|
|
|
|
20.9
|
%
|
|
20.8
|
%
|
|
|
|
19.5
|
%
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
15
|
|
|
14
|
|
|
|
|
29
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
213
|
|
|
$
|
206
|
|
|
|
|
$
|
383
|
|
|
$
|
351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decorative Architectural Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
653
|
|
|
$
|
620
|
|
|
5
|
%
|
|
$
|
1,158
|
|
|
$
|
1,113
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
141
|
|
|
$
|
139
|
|
|
|
|
$
|
242
|
|
|
$
|
244
|
|
|
|
Operating margin, as reported
|
|
|
|
21.6
|
%
|
|
22.4
|
%
|
|
|
|
20.9
|
%
|
|
21.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
4
|
|
|
4
|
|
|
|
|
8
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
$
|
145
|
|
|
$
|
143
|
|
|
|
|
$
|
250
|
|
|
$
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cabinetry Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
251
|
|
|
$
|
261
|
|
|
(4
|
)%
|
|
$
|
482
|
|
|
$
|
497
|
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
30
|
|
|
$
|
34
|
|
|
|
|
$
|
46
|
|
|
$
|
58
|
|
|
|
Operating margin, as reported
|
|
|
|
12.0
|
%
|
|
13.0
|
%
|
|
|
|
9.5
|
%
|
|
11.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
—
|
|
|
3
|
|
|
|
|
2
|
|
|
4
|
|
|
|
Operating profit, as adjusted
|
|
|
|
30
|
|
|
37
|
|
|
|
|
48
|
|
|
62
|
|
|
|
Operating margin, as adjusted
|
|
|
|
12.0
|
%
|
|
14.2
|
%
|
|
|
|
10.0
|
%
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
4
|
|
|
5
|
|
|
|
|
8
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
34
|
|
|
$
|
42
|
|
|
|
|
$
|
56
|
|
|
$
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
MASCO CORPORATION
|
Segment Data - Unaudited
|
For the Three Months and Six Months Ended June 30, 2017 and 2016
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Windows and Other Specialty Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
204
|
|
|
$
|
197
|
|
|
4
|
%
|
|
$
|
382
|
|
|
$
|
375
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss), as reported
|
|
|
|
$
|
18
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
24
|
|
|
$
|
1
|
|
|
|
Operating margin, as reported
|
|
|
|
8.8
|
%
|
|
(1.0
|
)%
|
|
|
|
6.3
|
%
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
6
|
|
|
5
|
|
|
|
|
11
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
$
|
24
|
|
|
$
|
3
|
|
|
|
|
$
|
35
|
|
|
$
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
2,057
|
|
|
$
|
2,001
|
|
|
3
|
%
|
|
$
|
3,834
|
|
|
$
|
3,721
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment
|
|
|
|
$
|
387
|
|
|
$
|
359
|
|
|
|
|
$
|
666
|
|
|
$
|
620
|
|
|
|
General corporate expense, net (GCE)
|
|
|
|
(30
|
)
|
|
(24
|
)
|
|
|
|
(56
|
)
|
|
(51
|
)
|
|
|
Operating profit, as reported
|
|
|
|
357
|
|
|
335
|
|
|
|
|
610
|
|
|
569
|
|
|
|
Operating margin, as reported
|
|
|
|
17.4
|
%
|
|
16.7
|
%
|
|
|
|
15.9
|
%
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment
|
|
|
|
—
|
|
|
7
|
|
|
|
|
2
|
|
|
10
|
|
|
|
Operating profit, as adjusted
|
|
|
|
357
|
|
|
342
|
|
|
|
|
612
|
|
|
579
|
|
|
|
Operating margin, as adjusted
|
|
|
|
17.4
|
%
|
|
17.1
|
%
|
|
|
|
16.0
|
%
|
|
15.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment
|
|
|
|
29
|
|
|
28
|
|
|
|
|
56
|
|
|
56
|
|
|
|
Depreciation and amortization - non-operating
|
|
|
|
4
|
|
|
6
|
|
|
|
|
8
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
390
|
|
|
$
|
376
|
|
|
|
|
$
|
676
|
|
|
$
|
645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2017 and 2016
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
North American
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,660
|
|
|
$
|
1,598
|
|
|
4
|
%
|
|
$
|
3,071
|
|
|
$
|
2,948
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
330
|
|
|
$
|
299
|
|
|
|
|
$
|
569
|
|
|
$
|
514
|
|
|
|
Operating margin, as reported
|
|
|
|
19.9
|
%
|
|
18.7
|
%
|
|
|
|
18.5
|
%
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
—
|
|
|
5
|
|
|
|
|
2
|
|
|
7
|
|
|
|
Operating profit, as adjusted
|
|
|
|
330
|
|
|
304
|
|
|
|
|
571
|
|
|
521
|
|
|
|
Operating margin, as adjusted
|
|
|
|
19.9
|
%
|
|
19.0
|
%
|
|
|
|
18.6
|
%
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
20
|
|
|
19
|
|
|
|
|
38
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
350
|
|
|
$
|
323
|
|
|
|
|
$
|
609
|
|
|
$
|
559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
397
|
|
|
$
|
403
|
|
|
(1
|
)%
|
|
$
|
763
|
|
|
$
|
773
|
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
57
|
|
|
$
|
60
|
|
|
|
|
$
|
97
|
|
|
$
|
106
|
|
|
|
Operating margin, as reported
|
|
|
|
14.4
|
%
|
|
14.9
|
%
|
|
|
|
12.7
|
%
|
|
13.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
—
|
|
|
2
|
|
|
|
|
—
|
|
|
3
|
|
|
|
Operating profit, as adjusted
|
|
|
|
57
|
|
|
62
|
|
|
|
|
97
|
|
|
109
|
|
|
|
Operating margin, as adjusted
|
|
|
|
14.4
|
%
|
|
15.4
|
%
|
|
|
|
12.7
|
%
|
|
14.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
9
|
|
|
9
|
|
|
|
|
18
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
66
|
|
|
$
|
71
|
|
|
|
|
$
|
115
|
|
|
$
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
2,057
|
|
|
$
|
2,001
|
|
|
3
|
%
|
|
$
|
3,834
|
|
|
$
|
3,721
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment
|
|
|
|
$
|
387
|
|
|
$
|
359
|
|
|
|
|
$
|
666
|
|
|
$
|
620
|
|
|
|
General corporate expense, net (GCE)
|
|
|
|
(30
|
)
|
|
(24
|
)
|
|
|
|
(56
|
)
|
|
(51
|
)
|
|
|
Operating profit, as reported
|
|
|
|
357
|
|
|
335
|
|
|
|
|
610
|
|
|
569
|
|
|
|
Operating margin, as reported
|
|
|
|
17.4
|
%
|
|
16.7
|
%
|
|
|
|
15.9
|
%
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment
|
|
|
|
—
|
|
|
7
|
|
|
|
|
2
|
|
|
10
|
|
|
|
Operating profit, as adjusted
|
|
|
|
357
|
|
|
342
|
|
|
|
|
612
|
|
|
579
|
|
|
|
Operating margin, as adjusted
|
|
|
|
17.4
|
%
|
|
17.1
|
%
|
|
|
|
16.0
|
%
|
|
15.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment
|
|
|
|
29
|
|
|
28
|
|
|
|
|
56
|
|
|
56
|
|
|
|
Depreciation and amortization - non-operating
|
|
|
|
4
|
|
|
6
|
|
|
|
|
8
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
390
|
|
|
$
|
376
|
|
|
|
|
$
|
676
|
|
|
$
|
645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170727005237/en/
Source: Masco Corporation