Masco Corporation Reports First Quarter 2019 Results

April 25, 2019

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Key Results

  • Sales decreased 1 percent to $1.9 billion; excluding acquisitions and currency, sales decreased 2 percent
  • Earnings per share decreased 17 percent to $0.39 per share; adjusted earnings per share decreased 2 percent to $0.44 per share
  • Returned approximately $157 million to shareholders through share repurchases and dividends
  • Anticipate 2019 earnings per share to be in the range of $2.52 - $2.72 per share, and reaffirming 2019 adjusted earnings per share to be in the range of $2.60 - $2.80 per share

LIVONIA, Mich. (April 25, 2019) - Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its first quarter results.

“We experienced a challenging start to 2019, which resulted in reduced sales and operating profits for the first quarter,” said Masco President and CEO, Keith Allman.  “While we anticipated many of the factors that led to our results, our performance was also impacted by inventory rebalancing by certain customers and softness in some of our end markets.  We continued to focus on creating shareholder value and returned $157 million to shareholders through share repurchases and dividends during the quarter.”

2019 First Quarter Commentary

On a reported basis, compared to first quarter 2018:

  • Net sales decreased 1 percent to $1.9 billion; in local currency and excluding acquisition, net sales decreased 2 percent
  • In local currency, North American sales increased 2 percent and international sales decreased 1 percent
  • Gross margins decreased 80 basis points to 31.4 percent from 32.2 percent
  • Operating profit decreased 14 percent to $211 million
  • Operating margins decreased 160 basis points to 11.1 percent from 12.7 percent
  • Net income decreased to $0.39 per share, compared to $0.47 per share

Compared to first quarter 2018, 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 margins decreased 120 basis points to 31.4 percent compared to 32.6 percent
  • Operating profit decreased 8 percent to $230 million from $250 million
  • Operating margins decreased 90 basis points to 12.1 percent compared to 13.0 percent
  • Net income decreased to $0.44 per share, compared to $0.45 per share

Liquidity at the end of the first quarter was $316 million
Repurchased 3.5 million shares in the quarter

2019 First Quarter Operating Segment Results

  • Plumbing Products’ net sales decreased 3 percent (sales were flat excluding the impact of foreign currency translation) due to lower volume and unfavorable mix, partially offset by pricing
  • Decorative Architectural Products’ net sales increased 5 percent; excluding the acquisition of Kichler, sales decreased 7 percent due to sales of paints and other coating products pulled forward into the fourth quarter of 2018, soft end markets and channel inventory rebalancing
  • Cabinetry Products’ net sales increased 9 percent due to growth in both the repair and remodel and new construction businesses
  • Windows and Other Specialty Products’ net sales decreased 16 percent due to planned reduced volume resulting from an ERP implementation in North America and continued softness in the UK market

“We are optimistic about the remainder of the year, as sales trends started to improve in March, and we are reaffirming our full year adjusted earnings per share guidance range of $2.60 to $2.80,” said Allman.  “We remain confident in the fundamentals of our business and will continue to execute on our strategies to create shareholder value.  Additionally, we expect to reach a decision on our review of strategic alternatives for our Cabinetry and Windows businesses by the end of June.”

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; 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

The 2019 first quarter supplemental material, including a presentation in PDF format, is available on Masco’s website at

Conference Call Details

A conference call regarding items contained in this release is scheduled for Thursday, April 25, 2019 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 9087682.  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 9087682.  The telephone replay will be available approximately two hours after the end of the call and continue through May 25, 2019.

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 and increasing tariffs, 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, risks associated with our reliance on information systems and technology, and our ability to achieve the anticipated benefits from our investments in new technology.  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.

Investor Contact

David Chaika
Vice President, Treasurer and Investor Relations


Click here to view the Q1 2019 Analyst Package.

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