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Masco Corporation Reports Third Quarter 2022 Results

October 26, 2022

Highlights

  • Sales of $2,204 million matched prior year third quarter 2021 sales; in local currency, sales increased 3 percent
  • Operating profit was $351 million and operating margin was 15.9 percent
  • Earnings per share increased 9 percent to $0.97 per share; adjusted earnings per share decreased 1 percent to $0.98 per share
  • Board authorized new $2.0 billion share repurchase program
  • Anticipate 2022 earnings per share in the range of $3.73 - $3.83 per share, and on an adjusted basis, in the range of $3.70 - $3.80 per share, compared to the previous range of $4.15 - $4.25 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 its third quarter results.

2022 Third Quarter Results

  • On a reported basis, compared to third quarter 2021:
    • Net sales of $2,204 million matched prior year; in local currency, net sales increased 3 percent
    • North American sales increased 2 percent and international sales decreased 9 percent; in local currency, North American sales increased 3 percent and international sales increased 5 percent
    • Gross margin decreased 270 basis points to 31.5 percent from 34.2 percent
    • Operating profit decreased 9 percent to $351 million
    • Operating margin decreased 160 basis points to 15.9 percent from 17.5 percent
    • Net income increased to $0.97 per share, compared to $0.89 per share
  • Compared to third quarter 2021, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 25 percent, were as follows:
    • Gross margin decreased 270 basis points to 31.5 percent compared to 34.2 percent
    • Operating profit decreased 9 percent to $351 million from $385 million
    • Operating margin decreased 160 basis points to 15.9 percent compared to 17.5 percent
    • Net income decreased to $0.98 per share, compared to $0.99 per share
  • Liquidity as of September 30, 2022 was $1,464 million (including availability under revolving credit facility)
  • Plumbing Products’ net sales were flat to prior year third quarter; in local currency, sales increased 5 percent
  • Decorative Architectural Products’ net sales increased 1 percent

“During the third quarter, our pricing actions helped mitigate the impact of volume declines and persistent supply chain challenges,” said Masco President and CEO, Keith Allman. “As a result, we delivered modest sales growth of three percent in local currency.”

“As market conditions continue to evolve, we now anticipate lower market demand, elevated operational costs, and additional foreign currency headwinds in the fourth quarter,” continued Allman. “Given these challenges, we have lowered our guidance for full year adjusted earnings per share to $3.70 - $3.80 per share. We are enacting plans to address the lower market demand and elevated operational costs. We remain confident in the power of our leading brands and the underlying positive long-term structural factors in housing that are supportive of our repair and remodel-oriented business.”

Dividend and Share Repurchase Authorization

Masco’s Board of Directors declared a quarterly dividend of $0.28 per share payable on November 28, 2022 to shareholders of record on November 10, 2022.

The Board also authorized a new $2.0 billion share repurchase program effective October 20, 2022, replacing the existing authorization.

“Our dividend and share repurchase program are important pillars of our capital allocation strategy to deliver enhanced value to shareholders. The new $2.0 billion share repurchase program underscores the Company’s resilient business model, strong financial position and the Board’s confidence in Masco’s future,” concluded Allman.

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; 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 third quarter 2022 supplemental material, including a presentation in PDF format, is available on Masco’s website at www.masco.com.

Conference Call Detail

A conference call regarding items contained in this release is scheduled for Wednesday, October 26, 2022 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 (844) 200-6205 and from outside the U.S. at (929) 526-1599. Please use the conference identification number 231792. Alternatively, you can pre-register for the call using this link: https://www.netroadshow.com/events/login?show=433f3dfb&confId=42422.

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 (866) 813-9403 from the U.S., (226) 828-7578 from Canada, and +44 204 525 0658 from all other locations. Please use access code 438003. The telephone replay will be available approximately two hours after the end of the call and continue through November 25, 2022.

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 to a lesser extent, new home construction, our ability to maintain our strong brands and reputation and to develop innovative products, our ability to maintain our competitive position in our industries, our reliance on key customers, the duration of the ongoing COVID-19 pandemic, including its impact on domestic and international economic activity, consumer discretionary spending, our employees and our supply chain, the cost and availability of materials, our dependence on third-party suppliers and service providers, extreme weather events and changes in climate, risks associated with our 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 and diverse personnel, risks associated with our reliance on information systems and technology, and risks associated with cybersecurity vulnerabilities, threats and attacks. 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 and Nine Months Ended September 30, 2022 and 2021

(in millions, except per common share data)

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2022

 

2021

 

2022

 

2021

Net sales

$

2,204

 

 

$

2,204

 

 

$

6,757

 

 

$

6,353

 

Cost of sales

 

1,509

 

 

 

1,451

 

 

 

4,589

 

 

 

4,109

 

Gross profit

 

695

 

 

 

753

 

 

 

2,168

 

 

 

2,244

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

344

 

 

 

368

 

 

 

1,056

 

 

 

1,057

 

Operating profit

 

351

 

 

 

385

 

 

 

1,112

 

 

 

1,187

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

Interest expense

 

(29

)

 

 

(26

)

 

 

(82

)

 

 

(253

)

Other, net

 

(12

)

 

 

(17

)

 

 

4

 

 

 

(438

)

 

 

(41

)

 

 

(43

)

 

 

(78

)

 

 

(691

)

Income before income taxes

 

310

 

 

 

342

 

 

 

1,034

 

 

 

496

 

 

 

 

 

 

 

 

 

Income tax expense

 

77

 

 

 

103

 

 

 

255

 

 

 

158

 

Net income

 

233

 

 

 

239

 

 

 

779

 

 

 

338

 

 

 

 

 

 

 

 

 

Less: Net income attributable to noncontrolling interest

 

15

 

 

 

19

 

 

 

50

 

 

 

60

 

Net income attributable to Masco Corporation

$

218

 

 

$

220

 

 

$

729

 

 

$

278

 

 

 

 

 

 

 

 

 

Income per common share attributable to Masco Corporation (diluted):

 

 

 

 

 

 

 

Net income

$

0.97

 

 

$

0.89

 

 

$

3.13

 

 

$

1.07

 

 

 

 

 

 

 

 

 

Average diluted common shares outstanding

 

227

 

 

 

247

 

 

 

233

 

 

 

253

 

Historical information is available on our website.

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2022 and 2021

(dollars in millions)

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2022

 

2021

 

2022

 

2021

Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

2,204

 

 

$

2,204

 

 

$

6,757

 

 

$

6,353

 

 

 

 

 

 

 

 

 

Gross profit, as reported

$

695

 

 

$

753

 

 

$

2,168

 

 

$

2,244

 

Rationalization charges

 

 

 

 

 

 

 

9

 

 

 

2

 

Gross profit, as adjusted

$

695

 

 

$

753

 

 

$

2,177

 

 

$

2,246

 

 

 

 

 

 

 

 

 

Gross margin, as reported

 

31.5

%

 

 

34.2

%

 

 

32.1

%

 

 

35.3

%

Gross margin, as adjusted

 

31.5

%

 

 

34.2

%

 

 

32.2

%

 

 

35.4

%

 

 

 

 

 

 

 

 

Selling, general and administrative expenses, as reported

$

344

 

 

$

368

 

 

$

1,056

 

 

$

1,057

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses as percent of net sales, as reported

 

15.6

%

 

 

16.7

%

 

 

15.6

%

 

 

16.6

%

 

 

 

 

 

 

 

 

Operating profit, as reported

$

351

 

 

$

385

 

 

$

1,112

 

 

$

1,187

 

Rationalization charges

 

 

 

 

 

 

 

9

 

 

 

2

 

Operating profit, as adjusted

$

351

 

 

$

385

 

 

$

1,121

 

 

$

1,189

 

 

 

 

 

 

 

 

 

Operating margin, as reported

 

15.9

%

 

 

17.5

%

 

 

16.5

%

 

 

18.7

%

Operating margin, as adjusted

 

15.9

%

 

 

17.5

%

 

 

16.6

%

 

 

18.7

%

Historical information is available on our website.

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2022 and 2021

(in millions, except per common share data)

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2022

 

2021

 

2022

 

2021

Income Per Common Share Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes, as reported

$

310

 

 

$

342

 

 

$

1,034

 

 

$

496

 

Rationalization charges

 

 

 

 

 

 

 

9

 

 

 

2

 

Pension costs associated with terminated plans

 

 

 

 

 

 

 

 

 

 

422

 

Loss (earnings) from equity investments, net

 

6

 

 

 

(5

)

 

 

6

 

 

 

(7

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

168

 

Fair value adjustment to contingent earnout obligation (1)

 

 

 

 

14

 

 

 

(24

)

 

 

14

 

(Gain) loss on sale of business (2)

 

 

 

 

 

 

 

(2

)

 

 

18

 

(Gain) on preferred stock redemption

 

 

 

 

 

 

 

 

 

 

(14

)

Income before income taxes, as adjusted

 

316

 

 

 

351

 

 

 

1,023

 

 

 

1,099

 

Tax at 25% rate

 

(79

)

 

 

(88

)

 

 

(256

)

 

 

(275

)

Less: Net income attributable to noncontrolling interest

 

15

 

 

 

19

 

 

 

50

 

 

 

60

 

Net income, as adjusted

$

222

 

 

$

244

 

 

$

717

 

 

$

764

 

 

 

 

 

 

 

 

 

Net income per common share, as adjusted

$

0.98

 

 

$

0.99

 

 

$

3.08

 

 

$

3.02

 

 

 

 

 

 

 

 

 

Average diluted common shares outstanding

 

227

 

 

 

247

 

 

 

233

 

 

 

253

(1)

Represents income for the nine months ended September 30, 2022 and expense for the three and nine months ended September 30, 2021 from the revaluation of contingent consideration related to a prior acquisition.

(2)

Represents a pre-tax post-closing gain related to the finalization of working capital items related to the divestiture of Hüppe GmbH (“Hüppe”) for the nine months ended September 30, 2022. Represents a loss related to the divestiture of Hüppe for the nine months ended September 30, 2021.

Outlook for the Twelve Months Ended December 31, 2022

 

Twelve Months Ended December 31, 2022

 

Low End

 

High End

Income Per Common Share Outlook

 

 

 

 

 

 

 

Net income per common share

$

3.73

 

 

$

3.83

 

Rationalization charges

 

0.03

 

 

 

0.03

 

Fair value adjustment to contingent earnout obligation (1)

 

(0.08

)

 

 

(0.08

)

(Gain) on sale of business (2)

 

(0.01

)

 

 

(0.01

)

Loss from equity investments, net

 

0.02

 

 

 

0.02

 

Allocation to participating securities per share (3)

 

0.01

 

 

 

0.01

 

Net income per common share, as adjusted

$

3.70

 

 

$

3.80

 

(1)

Represents income from the revaluation of contingent consideration related to a prior acquisition.

(2)

Represents a pre-tax post-closing gain related to the finalization of working capital items related to the divestiture of Hüppe.

(3)

Represents the impact of distributed dividends and undistributed earnings to unvested restricted stock awards as well as an allocation to redeemable noncontrolling interest 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, 2022 and December 31, 2021

(dollars in millions)

 

September 30, 2022

 

December 31, 2021

Balance Sheet

 

 

 

Assets

 

 

 

Current Assets:

 

 

 

Cash and cash investments

$

464

 

 

$

926

Receivables

 

1,330

 

 

 

1,171

Prepaid expenses and other

 

131

 

 

 

109

Inventories

 

1,339

 

 

 

1,216

Total Current Assets

 

3,264

 

 

 

3,422

 

 

 

 

Property and equipment, net

 

902

 

 

 

896

Goodwill

 

544

 

 

 

568

Other intangible assets, net

 

359

 

 

 

388

Operating lease right-of-use assets

 

263

 

 

 

187

Other assets

 

85

 

 

 

114

Total Assets

$

5,417

 

 

$

5,575

 

 

 

 

Liabilities

 

 

 

Current Liabilities:

 

 

 

Accounts payable

$

1,048

 

 

$

1,045

Notes payable

 

405

 

 

 

10

Accrued liabilities

 

771

 

 

 

884

Total Current Liabilities

 

2,224

 

 

 

1,939

 

 

 

 

Long-term debt

 

2,946

 

 

 

2,949

Noncurrent operating lease liabilities

 

253

 

 

 

172

Other liabilities

 

410

 

 

 

437

Total Liabilities

 

5,833

 

 

 

5,497

 

 

 

 

Redeemable noncontrolling interest

 

20

 

 

 

22

 

 

 

 

Equity

 

(436

)

 

 

56

Total Liabilities and Equity

$

5,417

 

 

$

5,575

 

As of September 30,

 

2022

 

2021

Other Financial Data

 

 

 

Working Capital Days

 

 

 

Receivable days

 

51

 

 

 

51

 

Inventory days

 

87

 

 

 

80

 

Payable days

 

66

 

 

 

65

 

Working capital

$

1,621

 

 

$

1,400

 

Working capital as a % of sales (LTM)

 

18.5

%

 

 

17.0

%

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, 2022 and 2021

(dollars in millions)

 

Nine Months Ended September 30,

 

2022

 

2021

Cash Flows From (For) Operating Activities:

 

 

 

Cash provided by operating activities

$

954

 

 

$

904

 

Working capital changes

 

(434

)

 

 

(309

)

Net cash from operating activities

 

520

 

 

 

595

 

 

 

 

 

Cash Flows From (For) Financing Activities:

 

 

 

Retirement of notes

 

 

 

 

(1,326

)

Purchase of Company common stock

 

(914

)

 

 

(878

)

Cash dividends paid

 

(195

)

 

 

(154

)

Dividends paid to noncontrolling interest

 

(68

)

 

 

(43

)

Issuance of notes, net of issuance costs

 

 

 

 

1,481

 

Proceeds from term loan

 

500

 

 

 

 

Payment of term loan

 

(100

)

 

 

 

Debt extinguishment costs

 

 

 

 

(160

)

Proceeds from the exercise of stock options

 

1

 

 

 

1

 

Employee withholding taxes paid on stock-based compensation

 

(17

)

 

 

(14

)

Decrease in debt, net

 

(9

)

 

 

(2

)

Net cash for financing activities

 

(802

)

 

 

(1,095

)

 

 

 

 

Cash Flows From (For) Investing Activities:

 

 

 

Capital expenditures

 

(137

)

 

 

(82

)

Acquisition of businesses, net of cash acquired

 

 

 

 

(57

)

Proceeds from disposition of businesses, net of cash disposed

 

 

 

 

5

 

Proceeds from disposition of other financial investments

 

1

 

 

 

170

 

Other, net

 

(8

)

 

 

7

 

Net cash (for) from investing activities

 

(144

)

 

 

43

 

 

 

 

 

Effect of exchange rate changes on cash and cash investments

 

(36

)

 

 

(15

)

 

 

 

 

Cash and Cash Investments:

 

 

 

Decrease for the period

 

(462

)

 

 

(472

)

At January 1

 

926

 

 

 

1,326

 

At September 30

$

464

 

 

$

854

 

 

As of September 30,

 

2022

 

2021

Liquidity

 

 

 

Cash and cash investments

$

464

 

$

854

Revolver availability

 

1,000

 

 

1,000

Total Liquidity

$

1,464

 

$

1,854

Historical information is available on our website.

MASCO CORPORATION

Segment Data - Unaudited

For the Three and Nine Months Ended September 30, 2022 and 2021

(dollars in millions)

 

Three Months Ended
September 30,

 

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

2021

 

Change

 

2022

 

2021

 

Change

Plumbing Products

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,324

 

 

$

1,329

 

 

%

 

$

4,056

 

 

$

3,907

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

$

220

 

 

$

248

 

 

 

 

$

686

 

 

$

773

 

 

 

Operating margin, as reported

 

16.6

%

 

 

18.7

%

 

 

 

 

16.9

%

 

 

19.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

Operating profit, as adjusted

 

220

 

 

 

248

 

 

 

 

 

686

 

 

 

775

 

 

 

Operating margin, as adjusted

 

16.6

%

 

 

18.7

%

 

 

 

 

16.9

%

 

 

19.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

24

 

 

 

26

 

 

 

 

 

73

 

 

 

76

 

 

 

EBITDA, as adjusted

$

244

 

 

$

274

 

 

 

 

$

759

 

 

$

851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decorative Architectural Products

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

880

 

 

$

875

 

 

1

%

 

$

2,701

 

 

$

2,446

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

$

151

 

 

$

166

 

 

 

 

$

498

 

 

$

496

 

 

 

Operating margin, as reported

 

17.2

%

 

 

19.0

%

 

 

 

 

18.4

%

 

 

20.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

Accelerated depreciation related to rationalization activity - segment

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

Operating profit, as adjusted

 

151

 

 

 

166

 

 

 

 

 

507

 

 

 

496

 

 

 

Operating margin, as adjusted

 

17.2

%

 

 

19.0

%

 

 

 

 

18.8

%

 

 

20.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

8

 

 

 

8

 

 

 

 

 

25

 

 

 

27

 

 

 

EBITDA, as adjusted

$

159

 

 

$

174

 

 

 

 

$

532

 

 

$

523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

2,204

 

 

$

2,204

 

 

%

 

$

6,757

 

 

$

6,353

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported - segment

$

371

 

 

$

414

 

 

 

 

$

1,184

 

 

$

1,269

 

 

 

General corporate expense, net

 

(20

)

 

 

(29

)

 

 

 

 

(72

)

 

 

(82

)

 

 

Operating profit, as reported

 

351

 

 

 

385

 

 

 

 

 

1,112

 

 

 

1,187

 

 

 

Operating margin, as reported

 

15.9

%

 

 

17.5

%

 

 

 

 

16.5

%

 

 

18.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges - segment

 

 

 

 

 

 

 

 

 

8

 

 

 

2

 

 

 

Accelerated depreciation related to rationalization activity - segment

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

Operating profit, as adjusted

 

351

 

 

 

385

 

 

 

 

 

1,121

 

 

 

1,189

 

 

 

Operating margin, as adjusted

 

15.9

%

 

 

17.5

%

 

 

 

 

16.6

%

 

 

18.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization - segment

 

32

 

 

 

34

 

 

 

 

 

98

 

 

 

103

 

 

 

Depreciation and amortization - other

 

2

 

 

 

2

 

 

 

 

 

6

 

 

 

11

 

 

 

EBITDA, as adjusted

$

385

 

 

$

421

 

 

 

 

$

1,225

 

 

$

1,303

 

 

 

Historical information is available on our website.

MASCO CORPORATION

North American and International Data - Unaudited

For the Three and Nine Months Ended September 30, 2022 and 2021

(dollars in millions)

 

Three Months Ended
September 30,

 

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

2021

 

Change

 

2022

 

2021

 

Change

North American

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,792

 

 

$

1,753

 

 

2

%

 

$

5,431

 

 

$

4,999

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

$

305

 

 

$

332

 

 

 

 

$

961

 

 

$

1,010

 

 

 

Operating margin, as reported

 

17.0

%

 

 

18.9

%

 

 

 

 

17.7

%

 

 

20.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

 

 

 

 

 

 

 

8

 

 

 

2

 

 

 

Accelerated depreciation related to rationalization activity

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

Operating profit, as adjusted

 

305

 

 

 

332

 

 

 

 

 

970

 

 

 

1,012

 

 

 

Operating margin, as adjusted

 

17.0

%

 

 

18.9

%

 

 

 

 

17.9

%

 

 

20.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

21

 

 

 

22

 

 

 

 

 

64

 

 

 

66

 

 

 

EBITDA, as adjusted

$

326

 

 

$

354

 

 

 

 

$

1,034

 

 

$

1,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

412

 

 

$

451

 

 

(9

)%

 

$

1,326

 

 

$

1,354

 

 

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

$

66

 

 

$

82

 

 

 

 

$

223

 

 

$

259

 

 

 

Operating margin, as reported

 

16.0

%

 

 

18.2

%

 

 

 

 

16.8

%

 

 

19.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

11

 

 

 

12

 

 

 

 

 

34

 

 

 

37

 

 

 

EBITDA

$

77

 

 

$

94

 

 

 

 

$

257

 

 

$

296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

2,204

 

 

$

2,204

 

 

%

 

$

6,757

 

 

$

6,353

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported - segment

$

371

 

 

$

414

 

 

 

 

$

1,184

 

 

$

1,269

 

 

 

General corporate expense, net

 

(20

)

 

 

(29

)

 

 

 

 

(72

)

 

 

(82

)

 

 

Operating profit, as reported

 

351

 

 

 

385

 

 

 

 

 

1,112

 

 

 

1,187

 

 

 

Operating margin, as reported

 

15.9

%

 

 

17.5

%

 

 

 

 

16.5

%

 

 

18.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges - segment

 

 

 

 

 

 

 

 

 

8

 

 

 

2

 

 

 

Accelerated depreciation related to rationalization activity - segment

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

Operating profit, as adjusted

 

351

 

 

 

385

 

 

 

 

 

1,121

 

 

 

1,189

 

 

 

Operating margin, as adjusted

 

15.9

%

 

 

17.5

%

 

 

 

 

16.6

%

 

 

18.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization - segment

 

32

 

 

 

34

 

 

 

 

 

98

 

 

 

103

 

 

 

Depreciation and amortization - other

 

2

 

 

 

2

 

 

 

 

 

6

 

 

 

11

 

 

 

EBITDA, as adjusted

$

385

 

 

$

421

 

 

 

 

$

1,225

 

 

$

1,303

 

 

 

Historical information is available on our website.

Investor Contact
David Chaika
Vice President, Treasurer and Investor Relations
313.792.5500
david_chaika@mascohq.com

Source: Masco Corporation

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