Masco sales, profits flat

LIVONIA—Masco Corp. (NYSE: MAS), the manufacturer of home improvement and building products, reported net income from continuing operations of $639 million for 2019, up slightly from $636 million in 2018. Revenue was $6.71 billion, up from $6.65 billion in 2018.

For the fourth quarter, net income from continuing operations was $158 million, down from $172 million in the fourth quarter of 2018. Revenue was $1.64 billion, unchanged from a year earlier.

The company said its plumbing products business saw a 2 percent increase in sales, driven by 5 percent growth in North America. Sales of decorative architectural products fell 3 percent, with  growth in paints and other coating products offset by lower sales in lighting.

“We finished the year on plan, with solid growth in both North American plumbing and paints and other coating products,” said Keith Allman, Masco’s president and CEO. “We also closed the sale of our Milgard Windows and Doors business, signed an agreement to sell our Masco Cabinetry business, and returned $495 million to shareholders through share repurchases and dividends during the quarter. We executed on our strategy to become more focused on our higher margin, lower ticket, and less cyclical plumbing and decorative architectural products segments. We also delivered on our commitments, achieving sales growth of 2 percent in local currencies and adjusted earnings per share growth from continuing operations of 6 percent, despite slower overall end markets and higher input costs for many of our products. Lastly, we continued our balanced capital allocation strategy by repurchasing 20.1 million shares for $896 million, increasing our dividend for the sixth year in a row, and reducing our debt by $201 million.”

Masco’s portfolio of brands includes Behr paint; Delta and Hansgrohe faucets, bath and shower fixtures; Kichler decorative and outdoor lighting; and HotSpring spas. The 2019 fourth quarter and full year supplemental material, including a presentation in PDF format, is available at www.masco.com.

To listen to a replay of the conference call discussing these results, visit the company website, or call (855) 859-2056 in the United States and (404) 537-3406 elsewhere, using the conference identification number 6649309.

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