Masco Sales Rise, Net Falls

TAYLOR — Masco Corp. (NYSE: MAS), the Taylor-based building products manufacturer, reported revenue and profit growth in the first quarter of 2015.

Revenue was $2.02 billion, up from $1.97 billion in the first quarter of 2014. Net income was $64 million or 18 cents a share, down from $74 million or 21 cents a share a year earlier.

The company also reported income from continuing operations, adjusted for one-time events, of $70 million or 20 cents a share, up from $51 million or 14 cents a share a year earlier.

The company said all company segments reported increased sales in local currency.

“The momentum we built over the past several years carried into the first quarter as we realized top- and bottom- line growth as well as margin expansion,” said Masco president and CEO Keith Allman. “In local currency, both Delta Faucet and Hansgrohe achieved their highest sales quarters ever. Our focus on the pro painter and new products drove sales in the Decorative Architectural segment. The Other Specialty segment’s ongoing commitment to innovation led to strengthened results. The Installation segment continues to perform well, benefiting from strategic diversification into commercial construction and a recovering housing environment. In the Cabinets and Related Products segment, our efforts to improve execution are paying off as we increased sales to home centers and builders while improving profitability.”

North American sales increased 5 percent and international sales decreased 8 percent in U.S. dollars but increased 10 percent in local currency — reflecting the strengthening U.S. dollar.

The company said its gross margin improved to 28.2 percent of sales from 28 percent a year earlier. Operating margins improved to 9 percent compared to 8 percent a year earlier.

Added Allman: “Our outlook for the year remains positive as we anticipate increasing demand for our market-leading products and services.”

A replay of a conference call discussing the financial results is available by calling (855) 859-2056 in the United States or (404) 537-3406 elsewhere, using the conference identification number 15309385.

More at www.masco.com.

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