Key Highlights
-
Sales for the third quarter increased 3 percent to $1.9 billion; in
local currency, sales increased 2 percent
-
Operating profit for the quarter grew 10 percent to $295 million;
adjusted operating profit grew 8 percent to $296 million
-
Earnings per share for the quarter grew 15 percent to $0.46 per common
share; adjusted earnings per share grew 22 percent to $0.50 per common
share
-
Updating 2017 earnings per share target to $1.93 to $1.97 from $1.93
to $2.00 per common share which reflects the impact of the severe
hurricanes
LIVONIA, 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 operating profit growth in the third quarter of 2017.
“We are pleased with our performance and the progress we made towards
our growth initiatives during the quarter, especially in light of the
impact from the severe hurricanes experienced in Texas, Florida, and
Puerto Rico,” said Masco President and CEO, Keith Allman. “Growth was
once again led by our Plumbing Products and Decorative Architectural
Products segments, and we continued to invest in our strong plumbing
brands and our pro paint initiative. Additionally, we returned
approximately $210 million to shareholders through dividends and share
repurchases in the quarter.”
2017 Third Quarter Commentary
-
On a reported basis, compared to third quarter 2016:
-
Net sales increased 3 percent to $1.9 billion; in local currency
net sales increased 2 percent
-
In local currency, North American sales increased 2 percent and
international sales increased 4 percent
-
Gross margins improved 90 basis points to 33.6 percent from 32.7
percent
-
Operating margins improved 90 basis points to 15.2 percent from
14.3 percent
-
Net income was $0.46 per common share compared to $0.40 per common
share
-
Compared to third 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 33.6 percent compared to 32.9 percent
-
Operating margins improved to 15.3 percent compared to 14.7 percent
-
Net income was $0.50 per common share, compared to $0.41 per
common share
-
Liquidity at the end of the third quarter was approximately $1.2
billion
-
4.0 million shares were repurchased in the third quarter
2017 Third Quarter Operating Segment Highlights
-
Plumbing Products’ net sales increased 6 percent (4 percent excluding
the impact of foreign currency translation), driven by North American
and international growth
-
Decorative Architectural Products’ net sales increased 3 percent with
growth from Behr’s pro initiative and Liberty’s builders’ hardware
business
-
Cabinetry Products’ net sales decreased 4 percent due to decreased
sales to U.S. and U.K. builders
-
Windows and Other Specialty Products’ net sales were flat due to the
divestiture of Arrow Fastener. Excluding the impact of this
divestiture, net sales increased 9 percent, driven by strong sales of
windows in North America
Outlook
“The demand drivers underlying our industry continue to be strong and
very supportive of long-term growth,” said Allman. “The negative effects
of the hurricanes are expected to be short-term for our business, and 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. Considering the impact of the severe
weather experienced recently, we are updating our 2017 earnings per
share target to a range of $1.93 to $1.97. Looking forward, we are
committed to achieving our 2019 earnings per share target of $2.50 that
we announced at our Investor Day in May.”
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 third 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 Tuesday, October 24, 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
89235746. 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 89235746. The telephone
replay will be available approximately two hours after the end of the
call and continue through November 24, 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 Nine Months Ended September 30, 2017 and
2016
|
|
(in millions, except per common share data)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net sales
|
|
$
|
1,936
|
|
|
$
|
1,877
|
|
|
$
|
5,770
|
|
|
$
|
5,598
|
|
Cost of sales
|
|
1,286
|
|
|
1,263
|
|
|
3,775
|
|
|
3,715
|
|
Gross profit
|
|
650
|
|
|
614
|
|
|
1,995
|
|
|
1,883
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
355
|
|
|
345
|
|
|
1,090
|
|
|
1,045
|
|
Operating profit
|
|
295
|
|
|
269
|
|
|
905
|
|
|
838
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(43
|
)
|
|
(43
|
)
|
|
(239
|
)
|
|
(186
|
)
|
Other, net
|
|
4
|
|
|
1
|
|
|
58
|
|
|
5
|
|
|
|
(39
|
)
|
|
(42
|
)
|
|
(181
|
)
|
|
(181
|
)
|
Income before income taxes
|
|
256
|
|
|
227
|
|
|
724
|
|
|
657
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
96
|
|
|
81
|
|
|
243
|
|
|
229
|
|
Net income
|
|
160
|
|
|
146
|
|
|
481
|
|
|
428
|
|
Less: Net income attributable to noncontrolling interest
|
|
12
|
|
|
12
|
|
|
35
|
|
|
35
|
|
Net income attributable to Masco Corporation
|
|
$
|
148
|
|
|
$
|
134
|
|
|
$
|
446
|
|
|
$
|
393
|
|
|
|
|
|
|
|
|
|
|
Income per common share attributable to Masco Corporation (diluted):
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
0.46
|
|
|
$
|
0.40
|
|
|
$
|
1.38
|
|
|
$
|
1.17
|
|
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding
|
|
316
|
|
|
329
|
|
|
319
|
|
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
|
|
|
MASCO CORPORATION
|
Exhibit A: Reconciliations - Unaudited
|
For the Three Months and Nine Months Ended September 30, 2017 and
2016
|
|
(in millions)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Gross Profit, Selling, General and
Administrative Expenses, and Operating Profit Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,936
|
|
|
$
|
1,877
|
|
|
$
|
5,770
|
|
|
$
|
5,598
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported
|
|
$
|
650
|
|
|
$
|
614
|
|
|
$
|
1,995
|
|
|
$
|
1,883
|
|
Rationalization charges
|
|
1
|
|
|
4
|
|
|
3
|
|
|
10
|
|
Gross profit, as adjusted
|
|
$
|
651
|
|
|
$
|
618
|
|
|
$
|
1,998
|
|
|
$
|
1,893
|
|
|
|
|
|
|
|
|
|
|
Gross margin, as reported
|
|
33.6
|
%
|
|
32.7
|
%
|
|
34.6
|
%
|
|
33.6
|
%
|
Gross margin, as adjusted
|
|
33.6
|
%
|
|
32.9
|
%
|
|
34.6
|
%
|
|
33.8
|
%
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses, as reported
|
|
$
|
355
|
|
|
$
|
345
|
|
|
$
|
1,090
|
|
|
$
|
1,045
|
|
Rationalization charges
|
|
—
|
|
|
2
|
|
|
—
|
|
|
6
|
|
Selling, general and administrative expenses, as adjusted
|
|
$
|
355
|
|
|
$
|
343
|
|
|
$
|
1,090
|
|
|
$
|
1,039
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses as percent of net
sales, as reported
|
|
18.3
|
%
|
|
18.4
|
%
|
|
18.9
|
%
|
|
18.7
|
%
|
Selling, general and administrative expenses as percent of net
sales, as adjusted
|
|
18.3
|
%
|
|
18.3
|
%
|
|
18.9
|
%
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
$
|
295
|
|
|
$
|
269
|
|
|
$
|
905
|
|
|
$
|
838
|
|
Rationalization charges
|
|
1
|
|
|
6
|
|
|
3
|
|
|
16
|
|
Operating profit, as adjusted
|
|
$
|
296
|
|
|
$
|
275
|
|
|
$
|
908
|
|
|
$
|
854
|
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported
|
|
15.2
|
%
|
|
14.3
|
%
|
|
15.7
|
%
|
|
15.0
|
%
|
Operating margin, as adjusted
|
|
15.3
|
%
|
|
14.7
|
%
|
|
15.7
|
%
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
|
|
|
MASCO CORPORATION
|
Exhibit A: Reconciliations - Unaudited
|
For the Three Months and Nine Months Ended September 30, 2017
and 2016
|
|
(in millions, except per common share data)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Income Per Common Share Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as reported
|
|
$
|
256
|
|
|
$
|
227
|
|
|
$
|
724
|
|
|
$
|
657
|
|
Rationalization charges
|
|
1
|
|
|
6
|
|
|
3
|
|
|
16
|
|
(Gain) from auction rate securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
(Gains) from private equity funds, net
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
(Earnings) from equity investments, net
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
Impairment of private equity funds
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
107
|
|
|
—
|
|
(Gain) on sale of business
|
|
(2
|
)
|
|
—
|
|
|
(51
|
)
|
|
—
|
|
Income before income taxes, as adjusted
|
|
257
|
|
|
232
|
|
|
782
|
|
|
669
|
|
Tax at 34% rate (36% for 2016)
|
|
(87
|
)
|
|
(84
|
)
|
|
(266
|
)
|
|
(241
|
)
|
Less: Net income attributable to noncontrolling interest
|
|
12
|
|
|
12
|
|
|
35
|
|
|
35
|
|
Net income, as adjusted
|
|
$
|
158
|
|
|
$
|
136
|
|
|
$
|
481
|
|
|
$
|
393
|
|
|
|
|
|
|
|
|
|
|
Net income per common share, as adjusted
|
|
$
|
0.50
|
|
|
$
|
0.41
|
|
|
$
|
1.51
|
|
|
$
|
1.18
|
|
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding
|
|
316
|
|
|
329
|
|
|
319
|
|
|
332
|
|
|
|
|
Outlook for the Twelve Months Ended December 31, 2017
|
|
|
|
|
|
Twelve Months Ended
|
|
|
December 31, 2017
|
|
|
Low End
|
|
High End
|
Income Per Common Share Outlook
|
|
|
|
|
|
|
|
|
|
Net income per common share
|
|
$
|
1.80
|
|
|
$
|
1.84
|
|
Loss on extinguishment of debt
|
|
0.22
|
|
|
0.22
|
|
(Gain) on sale of business
|
|
(0.11
|
)
|
|
(0.11
|
)
|
Allocation to participating securities per share (1)
|
|
0.02
|
|
|
0.02
|
|
Net income per common share, as adjusted
|
|
$
|
1.93
|
|
|
$
|
1.97
|
|
|
|
|
|
|
|
|
|
|
(1) Represents the impact of distributed dividends and
undistributed earnings to unvested restricted stock awards in
accordance with the two-class method of calculating earnings per
share.
|
|
Historical information is available on our website.
|
|
|
|
|
|
MASCO CORPORATION
|
Condensed Consolidated Balance Sheets and Other Financial Data -
Unaudited
|
September 30, 2017 and December 31, 2016
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
Balance Sheet
|
|
|
|
|
Assets
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and cash investments
|
|
$
|
1,141
|
|
|
$
|
990
|
|
Short-term bank deposits
|
|
77
|
|
|
201
|
|
Receivables
|
|
1,128
|
|
|
917
|
|
Inventories
|
|
866
|
|
|
712
|
|
Prepaid expenses and other
|
|
96
|
|
|
114
|
|
Total Current Assets
|
|
3,308
|
|
|
2,934
|
|
|
|
|
|
|
Property and equipment, net
|
|
1,097
|
|
|
1,060
|
|
Goodwill
|
|
801
|
|
|
832
|
|
Other intangible assets, net
|
|
156
|
|
|
154
|
|
Other assets
|
|
121
|
|
|
157
|
|
Total Assets
|
|
$
|
5,483
|
|
|
$
|
5,137
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
916
|
|
|
$
|
800
|
|
Notes payable
|
|
117
|
|
|
2
|
|
Accrued liabilities
|
|
675
|
|
|
658
|
|
Total Current Liabilities
|
|
1,708
|
|
|
1,460
|
|
|
|
|
|
|
Long-term debt
|
|
2,969
|
|
|
2,995
|
|
Other liabilities
|
|
746
|
|
|
785
|
|
Total Liabilities
|
|
5,423
|
|
|
5,240
|
|
|
|
|
|
|
Equity
|
|
60
|
|
|
(103
|
)
|
Total Liabilities and Equity
|
|
$
|
5,483
|
|
|
$
|
5,137
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30,
|
|
|
2017
|
|
2016
|
Other Financial Data
|
|
|
|
|
|
|
|
|
Working Capital Days
|
|
|
|
|
|
|
|
|
Receivable days
|
|
|
51
|
|
|
|
50
|
|
Inventory days
|
|
|
63
|
|
|
|
56
|
|
Payable days
|
|
|
72
|
|
|
|
72
|
|
Working capital
|
|
$
|
1,078
|
|
|
$
|
946
|
|
Working capital as a % of sales (LTM)
|
|
|
14.3
|
%
|
|
|
12.9
|
%
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
|
MASCO CORPORATION
|
Condensed Consolidated Statements of Cash Flows and Other
Financial Data - Unaudited
|
For the Nine Months Ended September 30, 2017 and 2016
|
|
(dollars in millions)
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2017
|
|
2016
|
Cash Flows From (For) Operating Activities:
|
|
|
|
|
Cash provided by operating activities
|
|
$
|
745
|
|
|
$
|
670
|
|
Working capital changes
|
|
(278
|
)
|
|
(187
|
)
|
Net cash from operating activities
|
|
467
|
|
|
483
|
|
|
|
|
|
|
Cash Flows From (For) Financing Activities:
|
|
|
|
|
Retirement of notes
|
|
(535
|
)
|
|
(1,300
|
)
|
Purchase of Company common stock
|
|
(312
|
)
|
|
(242
|
)
|
Cash dividends paid
|
|
(96
|
)
|
|
(95
|
)
|
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
|
|
(29
|
)
|
|
(40
|
)
|
Decrease in debt, net
|
|
—
|
|
|
(2
|
)
|
Net cash for financing activities
|
|
(518
|
)
|
|
(860
|
)
|
|
|
|
|
|
Cash Flows From (For) Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(113
|
)
|
|
(117
|
)
|
Proceeds from disposition of business
|
|
128
|
|
|
—
|
|
Other, net
|
|
142
|
|
|
77
|
|
Net cash from (for) investing activities
|
|
157
|
|
|
(40
|
)
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash investments
|
|
45
|
|
|
(10
|
)
|
|
|
|
|
|
Cash and Cash Investments:
|
|
|
|
|
Increase (decrease) for the period
|
|
151
|
|
|
(427
|
)
|
At January 1
|
|
990
|
|
|
1,468
|
|
At September 30
|
|
$
|
1,141
|
|
|
$
|
1,041
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30,
|
|
|
2017
|
|
2016
|
Liquidity
|
|
|
|
|
|
|
|
|
Cash and cash investments
|
|
$
|
1,141
|
|
|
$
|
1,041
|
|
Short-term bank deposits
|
|
|
77
|
|
|
|
182
|
|
Total Liquidity
|
|
$
|
1,218
|
|
|
$
|
1,223
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
|
Segment Data - Unaudited
|
For the Three Months and Nine Months Ended September 30, 2017
and 2016
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Plumbing Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
951
|
|
|
$
|
899
|
|
|
6
|
%
|
|
$
|
2,763
|
|
|
$
|
2,635
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
$
|
175
|
|
|
$
|
174
|
|
|
|
|
$
|
529
|
|
|
$
|
491
|
|
|
|
Operating margin, as reported
|
|
18.4
|
%
|
|
19.4
|
%
|
|
|
|
19.1
|
%
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
—
|
|
|
5
|
|
|
|
|
—
|
|
|
11
|
|
|
|
Accelerated depreciation related to rationalization activity
|
|
1
|
|
|
—
|
|
|
|
|
1
|
|
|
—
|
|
|
|
Operating profit, as adjusted
|
|
176
|
|
|
179
|
|
|
|
|
530
|
|
|
502
|
|
|
|
Operating margin, as adjusted
|
|
18.5
|
%
|
|
19.9
|
%
|
|
|
|
19.2
|
%
|
|
19.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
16
|
|
|
14
|
|
|
|
|
45
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
$
|
192
|
|
|
$
|
193
|
|
|
|
|
$
|
575
|
|
|
$
|
544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decorative Architectural Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
553
|
|
|
$
|
536
|
|
|
3
|
%
|
|
$
|
1,711
|
|
|
$
|
1,649
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
$
|
104
|
|
|
$
|
111
|
|
|
|
|
$
|
346
|
|
|
$
|
355
|
|
|
|
Operating margin, as reported
|
|
18.8
|
%
|
|
20.7
|
%
|
|
|
|
20.2
|
%
|
|
21.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
4
|
|
|
4
|
|
|
|
|
12
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
108
|
|
|
$
|
115
|
|
|
|
|
$
|
358
|
|
|
$
|
367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cabinetry Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
229
|
|
|
$
|
239
|
|
|
(4
|
)%
|
|
$
|
711
|
|
|
$
|
736
|
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
$
|
19
|
|
|
$
|
19
|
|
|
|
|
$
|
65
|
|
|
$
|
77
|
|
|
|
Operating margin, as reported
|
|
8.3
|
%
|
|
7.9
|
%
|
|
|
|
9.1
|
%
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
—
|
|
|
—
|
|
|
|
|
2
|
|
|
4
|
|
|
|
Accelerated depreciation related to rationalization activity
|
|
—
|
|
|
1
|
|
|
|
|
—
|
|
|
1
|
|
|
|
Operating profit, as adjusted
|
|
19
|
|
|
20
|
|
|
|
|
67
|
|
|
82
|
|
|
|
Operating margin, as adjusted
|
|
8.3
|
%
|
|
8.4
|
%
|
|
|
|
9.4
|
%
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
3
|
|
|
4
|
|
|
|
|
11
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
$
|
22
|
|
|
$
|
24
|
|
|
|
|
$
|
78
|
|
|
$
|
96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
MASCO CORPORATION
|
Segment Data - Unaudited
|
For the Three Months and Nine Months Ended September 30, 2017 and
2016
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Windows and Other Specialty Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
203
|
|
|
$
|
203
|
|
|
—
|
%
|
|
$
|
585
|
|
|
$
|
578
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss), as reported
|
|
$
|
23
|
|
|
$
|
(10
|
)
|
|
|
|
$
|
47
|
|
|
$
|
(9
|
)
|
|
|
Operating margin, as reported
|
|
11.3
|
%
|
|
(4.9
|
)%
|
|
|
|
8.0
|
%
|
|
(1.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
5
|
|
|
6
|
|
|
|
|
16
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
28
|
|
|
$
|
(4
|
)
|
|
|
|
$
|
63
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,936
|
|
|
$
|
1,877
|
|
|
|
%
|
|
$
|
5,770
|
|
|
$
|
5,598
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment
|
|
$
|
321
|
|
|
$
|
294
|
|
|
|
|
$
|
987
|
|
|
$
|
914
|
|
|
|
General corporate expense, net (GCE)
|
|
(26
|
)
|
|
(25
|
)
|
|
|
|
(82
|
)
|
|
(76
|
)
|
|
|
Operating profit, as reported
|
|
295
|
|
|
269
|
|
|
|
|
905
|
|
|
838
|
|
|
|
Operating margin, as reported
|
|
15.2
|
%
|
|
14.3
|
%
|
|
|
|
15.7
|
%
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment
|
|
—
|
|
|
5
|
|
|
|
|
2
|
|
|
15
|
|
|
|
Accelerated depreciation - segment
|
|
1
|
|
|
1
|
|
|
|
|
1
|
|
|
1
|
|
|
|
Operating profit, as adjusted
|
|
296
|
|
|
275
|
|
|
|
|
908
|
|
|
854
|
|
|
|
Operating margin, as adjusted
|
|
15.3
|
%
|
|
14.7
|
%
|
|
|
|
15.7
|
%
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment
|
|
28
|
|
|
28
|
|
|
|
|
84
|
|
|
84
|
|
|
|
Depreciation and amortization - non-operating
|
|
2
|
|
|
5
|
|
|
|
|
10
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
$
|
326
|
|
|
$
|
308
|
|
|
|
|
$
|
1,002
|
|
|
$
|
953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
|
North American and International Data - Unaudited
|
For the Three Months and Nine Months Ended September 30, 2017 and
2016
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
North American
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,529
|
|
|
$
|
1,497
|
|
|
2
|
%
|
|
$
|
4,600
|
|
|
$
|
4,445
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
$
|
266
|
|
|
$
|
235
|
|
|
|
|
$
|
835
|
|
|
$
|
749
|
|
|
|
Operating margin, as reported
|
|
17.4
|
%
|
|
15.7
|
%
|
|
|
|
18.2
|
%
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
—
|
|
|
4
|
|
|
|
|
2
|
|
|
11
|
|
|
|
Accelerated depreciation related to rationalization activity
|
|
1
|
|
|
1
|
|
|
|
|
1
|
|
|
1
|
|
|
|
Operating profit, as adjusted
|
|
267
|
|
|
240
|
|
|
|
|
838
|
|
|
761
|
|
|
|
Operating margin, as adjusted
|
|
17.5
|
%
|
|
16.0
|
%
|
|
|
|
18.2
|
%
|
|
17.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
18
|
|
|
19
|
|
|
|
|
56
|
|
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
$
|
285
|
|
|
$
|
259
|
|
|
|
|
$
|
894
|
|
|
$
|
818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
407
|
|
|
$
|
380
|
|
|
7
|
%
|
|
$
|
1,170
|
|
|
$
|
1,153
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
$
|
55
|
|
|
$
|
59
|
|
|
|
|
$
|
152
|
|
|
$
|
165
|
|
|
|
Operating margin, as reported
|
|
13.5
|
%
|
|
15.5
|
%
|
|
|
|
13.0
|
%
|
|
14.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
—
|
|
|
1
|
|
|
|
|
—
|
|
|
4
|
|
|
|
Operating profit, as adjusted
|
|
55
|
|
|
60
|
|
|
|
|
152
|
|
|
169
|
|
|
|
Operating margin, as adjusted
|
|
13.5
|
%
|
|
15.8
|
%
|
|
|
|
13.0
|
%
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
10
|
|
|
9
|
|
|
|
|
28
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
$
|
65
|
|
|
$
|
69
|
|
|
|
|
$
|
180
|
|
|
$
|
196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,936
|
|
|
$
|
1,877
|
|
|
3
|
%
|
|
$
|
5,770
|
|
|
$
|
5,598
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment
|
|
$
|
321
|
|
|
$
|
294
|
|
|
|
|
$
|
987
|
|
|
$
|
914
|
|
|
|
General corporate expense, net (GCE)
|
|
(26
|
)
|
|
(25
|
)
|
|
|
|
(82
|
)
|
|
(76
|
)
|
|
|
Operating profit, as reported
|
|
295
|
|
|
269
|
|
|
|
|
905
|
|
|
838
|
|
|
|
Operating margin, as reported
|
|
15.2
|
%
|
|
14.3
|
%
|
|
|
|
15.7
|
%
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment
|
|
—
|
|
|
5
|
|
|
|
|
2
|
|
|
15
|
|
|
|
Accelerated depreciation - segment
|
|
1
|
|
|
1
|
|
|
|
|
1
|
|
|
1
|
|
|
|
Operating profit, as adjusted
|
|
296
|
|
|
275
|
|
|
|
|
908
|
|
|
854
|
|
|
|
Operating margin, as adjusted
|
|
15.3
|
%
|
|
14.7
|
%
|
|
|
|
15.7
|
%
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment
|
|
28
|
|
|
28
|
|
|
|
|
84
|
|
|
84
|
|
|
|
Depreciation and amortization - non-operating
|
|
2
|
|
|
5
|
|
|
|
|
10
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
$
|
326
|
|
|
$
|
308
|
|
|
|
|
$
|
1,002
|
|
|
$
|
953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical information is available on our website.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171024005456/en/
Source: Masco Corporation