Key Highlights
-
Sales increased 8 percent to $1.9 billion; in local currency, sales
increased 5 percent
-
Excluding acquisitions and divestitures, sales increased 7 percent; in
local currency, sales increased 5 percent
-
Earnings per share grew 9 percent to $0.47 per share; adjusted
earnings per share grew 13 percent to $0.45 per share
-
Completed the acquisition of The L.D. Kichler Co. for approximately
$550 million and returned approximately $183 million to shareholders
through dividends and share repurchases
-
Affirming 2018 anticipated earnings per share to be in the range of
$2.36-$2.51 per share, and on an adjusted basis to be in the range of
$2.48-$2.63 per share
LIVONIA, 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 earnings per share growth in the first quarter of 2018.
“We delivered a solid start to 2018 as we continued to grow our top
line, invest for future growth, and deploy capital to create value for
our shareholders,” said Masco President and CEO, Keith Allman. “Growth
was led by our Plumbing and Decorative Architectural Products segments,
and our North American windows business. Additionally, we completed the
acquisition of Kichler Lighting for approximately $550 million and
returned approximately $183 million to shareholders through dividends
and share repurchases.”
2018 First Quarter Commentary
-
On a reported basis, compared to first quarter 2017:
-
Net sales increased 8 percent to $1.9 billion; in local currency,
net sales increased 5 percent
-
In local currency, North American sales increased 7 percent and
international sales decreased 2 percent
-
Gross margins decreased 180 basis points to 32.2 percent from 34.0
percent
-
Operating margins decreased 180 basis points to 12.7 percent from
14.5 percent
-
Net income increased to $0.47 per share compared to $0.43 per share
-
Compared to first quarter 2017, results for key financial measures, as
adjusted for certain items (see Exhibit A) and with a normalized tax
rate of 26 percent (34 percent in 2017), were as follows:
-
Gross margins decreased 150 basis points to 32.6 percent compared
to 34.1 percent
-
Operating margins decreased 160 basis points to 13.0 percent
compared to 14.6 percent
-
Net income increased to $0.45 per share, compared to $0.40 per
share
-
Liquidity at the end of the first quarter was approximately $469
million
-
3.7 million shares were repurchased in the first quarter
2018 First Quarter Operating Segment Highlights
-
Plumbing Products’ net sales increased 11 percent (6 percent excluding
the impact of foreign currency translation), driven by North American
growth
-
Decorative Architectural Products’ net sales increased 10 percent due
to the acquisition of Kichler as well as growth from Behr’s pro
initiative and Liberty’s builders’ hardware business
-
Cabinetry Products’ net sales decreased 6 percent due to the
divestiture of Moores as well as decreased sales to U.S. builders,
partially offset by mid-single digit growth in the repair and remodel
business
-
Windows and Other Specialty Products’ net sales increased 4 percent (2
percent excluding the impact of foreign currency translation) due to
strong growth in our North American windows business
“We believe our end markets remain strong and very supportive of
long-term growth,” said Allman. “While we did have a high level of
investment spending in the first quarter, our expectations for the year
have not changed. With our strong brands, industry leading positions,
and strong execution, we continue to anticipate achieving adjusted
earnings per share for 2018 in the range of $2.48 to $2.63.”
About Masco
Headquartered in Livonia, 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; Kichler®
decorative and outdoor lighting; and HotSpring® 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 2018 first 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, April 24, 2018 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
3485119. 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 3485119. The telephone
replay will be available approximately two hours after the end of the
call and continue through May 24, 2018.
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 “outlook,” “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 residential
repair and remodel activity and new home construction, our ability to
maintain our strong brands and reputation and to develop new products,
our ability to maintain our competitive position in our industries, our
reliance on key customers, the cost and availability of raw materials,
our dependence on third-party suppliers, risks associated with
international operations and global strategies, our ability to achieve
the anticipated benefits of our strategic initiatives, our ability to
successfully execute our acquisition strategy and integrate businesses
that we have and may acquire, our ability to attract, develop and retain
talented personnel, our ability to achieve the anticipated benefits from
our investments in new technology, risks associated with our reliance on
information systems and technology, and our ability to sustain the
improved results of our U.S. window business. 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. Any forward-looking statement made by us speaks only as of
the date on which it was made. 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 Ended March 31, 2018 and 2017
|
|
(in millions, except per common share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2018
|
|
2017
|
Net sales
|
|
|
|
$
|
1,920
|
|
|
$
|
1,778
|
|
Cost of sales
|
|
|
|
1,301
|
|
|
1,173
|
|
Gross profit
|
|
|
|
619
|
|
|
605
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
375
|
|
|
348
|
|
Operating profit
|
|
|
|
244
|
|
|
257
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(41
|
)
|
|
(43
|
)
|
Other, net
|
|
|
|
(3
|
)
|
|
(4
|
)
|
|
|
|
|
(44
|
)
|
|
(47
|
)
|
Income before income taxes
|
|
|
|
200
|
|
|
210
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
39
|
|
|
62
|
|
Net income
|
|
|
|
161
|
|
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
12
|
|
|
10
|
|
Net income attributable to Masco Corporation
|
|
|
|
$
|
149
|
|
|
$
|
138
|
|
|
|
|
|
|
|
|
Income per common share attributable to Masco Corporation (diluted):
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
0.47
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding
|
|
|
|
313
|
|
|
321
|
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2018
|
|
2017
|
Gross Profit, Selling, General and
Administrative Expenses, and Operating Profit Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,920
|
|
|
$
|
1,778
|
|
|
|
|
|
|
|
|
Gross profit, as reported
|
|
|
|
$
|
619
|
|
|
$
|
605
|
|
Rationalization charges
|
|
|
|
1
|
|
|
2
|
|
Kichler inventory step up adjustment
|
|
|
|
5
|
|
|
—
|
|
Gross profit, as adjusted
|
|
|
|
$
|
625
|
|
|
$
|
607
|
|
|
|
|
|
|
|
|
Gross margin, as reported
|
|
|
|
32.2
|
%
|
|
34.0
|
%
|
Gross margin, as adjusted
|
|
|
|
32.6
|
%
|
|
34.1
|
%
|
|
|
|
|
|
|
|
Selling, general and administrative expenses, as reported
|
|
|
|
$
|
375
|
|
|
$
|
348
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses as percent of net
sales, as reported
|
|
|
|
19.5
|
%
|
|
19.6
|
%
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
244
|
|
|
$
|
257
|
|
Rationalization charges
|
|
|
|
1
|
|
|
2
|
|
Kichler inventory step up adjustment
|
|
|
|
5
|
|
|
—
|
|
Operating profit, as adjusted
|
|
|
|
$
|
250
|
|
|
$
|
259
|
|
|
|
|
|
|
|
|
Operating margin, as reported
|
|
|
|
12.7
|
%
|
|
14.5
|
%
|
Operating margin, as adjusted
|
|
|
|
13.0
|
%
|
|
14.6
|
%
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
(in millions, except per common share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2018
|
|
2017
|
Income Per Common Share Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as reported
|
|
|
|
$
|
200
|
|
|
$
|
210
|
|
Rationalization charges
|
|
|
|
1
|
|
|
2
|
|
Kichler inventory step up adjustment
|
|
|
|
5
|
|
|
—
|
|
(Gains) from private equity funds, net
|
|
|
|
—
|
|
|
(1
|
)
|
Income before income taxes, as adjusted
|
|
|
|
206
|
|
|
211
|
|
Tax at 26% rate (34% for 2017)
|
|
|
|
(54
|
)
|
|
(72
|
)
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
12
|
|
|
10
|
|
Net income, as adjusted
|
|
|
|
$
|
140
|
|
|
$
|
129
|
|
|
|
|
|
|
|
|
Net income per common share, as adjusted
|
|
|
|
$
|
0.45
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding
|
|
|
|
313
|
|
|
321
|
|
|
|
|
|
|
Outlook for the Twelve Months Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2018
|
|
|
|
|
Low End
|
|
High End
|
Income Per Common Share Outlook
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share
|
|
|
|
$
|
2.36
|
|
|
$
|
2.51
|
Rationalization charges
|
|
|
|
0.01
|
|
|
0.01
|
Kichler inventory purchase accounting adjustment
|
|
|
|
0.09
|
|
|
0.09
|
Allocation to participating securities per share (1)
|
|
|
|
0.02
|
|
|
0.02
|
Net income per common share, as adjusted
|
|
|
|
$
|
2.48
|
|
|
$
|
2.63
|
(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
March 31, 2018 and December 31, 2017
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
Balance Sheet
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash investments
|
|
|
|
$
|
370
|
|
|
$
|
1,194
|
Short-term bank deposits
|
|
|
|
99
|
|
|
108
|
Receivables
|
|
|
|
1,356
|
|
|
1,066
|
Inventories
|
|
|
|
1,050
|
|
|
784
|
Prepaid expenses and other
|
|
|
|
118
|
|
|
111
|
Total Current Assets
|
|
|
|
2,993
|
|
|
3,263
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
1,183
|
|
|
1,129
|
Goodwill
|
|
|
|
891
|
|
|
841
|
Other intangible assets, net
|
|
|
|
429
|
|
|
187
|
Other assets
|
|
|
|
134
|
|
|
114
|
Total Assets
|
|
|
|
$
|
5,630
|
|
|
$
|
5,534
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
1,008
|
|
|
$
|
824
|
Notes payable
|
|
|
|
116
|
|
|
116
|
Accrued liabilities
|
|
|
|
646
|
|
|
727
|
Total Current Liabilities
|
|
|
|
1,770
|
|
|
1,667
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
2,971
|
|
|
2,969
|
Other liabilities
|
|
|
|
706
|
|
|
715
|
Total Liabilities
|
|
|
|
5,447
|
|
|
5,351
|
|
|
|
|
|
|
|
Equity
|
|
|
|
183
|
|
|
183
|
Total Liabilities and Equity
|
|
|
|
$
|
5,630
|
|
|
$
|
5,534
|
|
|
|
|
|
|
|
|
|
As of March 31,
|
|
|
|
|
2018
|
|
2017
|
Other Financial Data
|
|
|
|
|
|
|
Working Capital Days
|
|
|
|
|
|
|
Receivable days
|
|
|
|
57
|
|
|
53
|
|
Inventory days
|
|
|
|
71
|
|
|
61
|
|
Payable days
|
|
|
|
71
|
|
|
71
|
|
Working capital
|
|
|
|
$
|
1,398
|
|
|
$
|
1,086
|
|
Working capital as a % of sales (LTM)
|
|
|
|
18.0
|
%
|
|
14.6
|
%
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
Condensed Consolidated Statements of Cash Flows and Other
Financial Data - Unaudited
For the Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2018
|
|
2017
|
Cash Flows From (For) Operating Activities:
|
|
|
|
|
|
|
Cash provided by operating activities
|
|
|
|
$
|
210
|
|
|
$
|
246
|
|
Working capital changes
|
|
|
|
(265
|
)
|
|
(395
|
)
|
Net cash for operating activities
|
|
|
|
(55
|
)
|
|
(149
|
)
|
|
|
|
|
|
|
|
Cash Flows From (For) Financing Activities:
|
|
|
|
|
|
|
Purchase of Company common stock
|
|
|
|
(150
|
)
|
|
(87
|
)
|
Cash dividends paid
|
|
|
|
(33
|
)
|
|
(32
|
)
|
Employee withholding taxes paid on stock-based compensation
|
|
|
|
(32
|
)
|
|
(14
|
)
|
Net cash for financing activities
|
|
|
|
(215
|
)
|
|
(133
|
)
|
|
|
|
|
|
|
|
Cash Flows From (For) Investing Activities:
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(40
|
)
|
|
(37
|
)
|
Acquisition of businesses, net of cash acquired
|
|
|
|
(548
|
)
|
|
—
|
|
Other, net
|
|
|
|
14
|
|
|
11
|
|
Net cash for investing activities
|
|
|
|
(574
|
)
|
|
(26
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash investments
|
|
|
|
20
|
|
|
7
|
|
|
|
|
|
|
|
|
Cash and Cash Investments:
|
|
|
|
|
|
|
Decrease for the period
|
|
|
|
(824
|
)
|
|
(301
|
)
|
At January 1
|
|
|
|
1,194
|
|
|
990
|
|
At March 31
|
|
|
|
$
|
370
|
|
|
$
|
689
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
|
|
|
|
|
2018
|
|
2017
|
Liquidity
|
|
|
|
|
|
|
Cash and cash investments
|
|
|
|
$
|
370
|
|
|
$
|
689
|
|
Short-term bank deposits
|
|
|
|
99
|
|
|
194
|
|
Total Liquidity
|
|
|
|
$
|
469
|
|
|
$
|
883
|
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
Change
|
Plumbing Products
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
971
|
|
|
$
|
872
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
163
|
|
|
$
|
162
|
|
|
|
Operating margin, as reported
|
|
|
|
16.8
|
%
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
1
|
|
|
—
|
|
|
|
Operating profit, as adjusted
|
|
|
|
164
|
|
|
162
|
|
|
|
Operating margin, as adjusted
|
|
|
|
16.9
|
%
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
18
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
182
|
|
|
$
|
176
|
|
|
|
|
|
|
|
|
|
|
|
|
Decorative Architectural Products
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
545
|
|
|
$
|
496
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
89
|
|
|
$
|
94
|
|
|
|
Operating margin, as reported
|
|
|
|
16.3
|
%
|
|
19.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Kichler inventory step up adjustment
|
|
|
|
5
|
|
|
—
|
|
|
|
Operating profit, as adjusted
|
|
|
|
94
|
|
|
94
|
|
|
|
Operating margin, as adjusted
|
|
|
|
17.2
|
%
|
|
19.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
5
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
99
|
|
|
$
|
98
|
|
|
|
|
|
|
|
|
|
|
|
|
Cabinetry Products
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
217
|
|
|
$
|
231
|
|
|
(6
|
)%
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
6
|
|
|
$
|
16
|
|
|
|
Operating margin, as reported
|
|
|
|
2.8
|
%
|
|
6.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
—
|
|
|
2
|
|
|
|
Operating profit, as adjusted
|
|
|
|
6
|
|
|
18
|
|
|
|
Operating margin, as adjusted
|
|
|
|
2.8
|
%
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
3
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
9
|
|
|
$
|
22
|
|
|
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
Change
|
Windows and Other Specialty Products
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
187
|
|
|
$
|
179
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
4
|
|
|
$
|
8
|
|
|
|
Operating margin, as reported
|
|
|
|
2.1
|
%
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
6
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
$
|
10
|
|
|
$
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,920
|
|
|
$
|
1,778
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment
|
|
|
|
$
|
262
|
|
|
$
|
280
|
|
|
|
General corporate expense, net (GCE)
|
|
|
|
(18
|
)
|
|
(23
|
)
|
|
|
Operating profit, as reported
|
|
|
|
244
|
|
|
257
|
|
|
|
Operating margin, as reported
|
|
|
|
12.7
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment
|
|
|
|
1
|
|
|
2
|
|
|
|
Kichler inventory step up adjustment
|
|
|
|
5
|
|
|
—
|
|
|
|
Operating profit, as adjusted
|
|
|
|
250
|
|
|
259
|
|
|
|
Operating margin, as adjusted
|
|
|
|
13.0
|
%
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment
|
|
|
|
32
|
|
|
27
|
|
|
|
Depreciation and amortization - non-operating
|
|
|
|
2
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
284
|
|
|
$
|
290
|
|
|
|
Historical information is available on our website.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASCO CORPORATION
North American and International Data - Unaudited
For the Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
Change
|
North American
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,516
|
|
|
$
|
1,412
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
218
|
|
|
$
|
238
|
|
|
|
Operating margin, as reported
|
|
|
|
14.4
|
%
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges
|
|
|
|
1
|
|
|
2
|
|
|
|
Kichler inventory step up adjustment
|
|
|
|
5
|
|
|
—
|
|
|
|
Operating profit, as adjusted
|
|
|
|
224
|
|
|
240
|
|
|
|
Operating margin, as adjusted
|
|
|
|
14.8
|
%
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
21
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
245
|
|
|
$
|
258
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
404
|
|
|
$
|
366
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported
|
|
|
|
$
|
44
|
|
|
$
|
42
|
|
|
|
Operating margin, as reported
|
|
|
|
10.9
|
%
|
|
11.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
11
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
$
|
55
|
|
|
$
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,920
|
|
|
$
|
1,778
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment
|
|
|
|
$
|
262
|
|
|
$
|
280
|
|
|
|
General corporate expense, net (GCE)
|
|
|
|
(18
|
)
|
|
(23
|
)
|
|
|
Operating profit, as reported
|
|
|
|
244
|
|
|
257
|
|
|
|
Operating margin, as reported
|
|
|
|
12.7
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment
|
|
|
|
1
|
|
|
2
|
|
|
|
Kichler inventory step up adjustment
|
|
|
|
5
|
|
|
—
|
|
|
|
Operating profit, as adjusted
|
|
|
|
250
|
|
|
259
|
|
|
|
Operating margin, as adjusted
|
|
|
|
13.0
|
%
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment
|
|
|
|
32
|
|
|
27
|
|
|
|
Depreciation and amortization - non-operating
|
|
|
|
2
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
|
|
$
|
284
|
|
|
$
|
290
|
|
|
|
Historical information is available on our website.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180424005375/en/
Source: Masco Corporation