LIVONIA—Masco Corp., the manufacturer of branded home improvement and building products, reported flat sales of $2.2 billion in the third quarter ended Sept. 30. Net income was $233 million or 97 cents a share, down from $239 million or 89 cents a share a year earlier. (The earnings per share figure rose due to stock buybacks that reduced the number of Masco shares on the market.)
For the nine months, revenue was $6.76 billion, up from $6.35 billion a year earlier. Net income was $779 million or $3.13 a share, up from $278 million or $1.07 a share a year earlier. (The prior year’s nine-month results were hit by one-time losses related to the sale of a subsidiary.)
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.
“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. Given these challenges, we have lowered our guidance for full year adjusted earnings per share to $3.70 to $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.”
Masco’s board of directors declared a quarterly dividend of 28 cents a share payable on Nov. 28 to shareholders of record as of Nov. 10. The board also authorized a new $2 billion share repurchase program effective Oct. 20, 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 billion share repurchase program underscores the company’s resilient business model, strong financial position and the board’s confidence in Masco’s future,” Allman said.
Headquartered in Livonia, Masco is a global leader in the design, manufacture and distribution of branded home improvement and building products. Its portfolio of brands includes Behr paint; Delta and Hansgrohe faucets, bath and shower fixtures; Kichler decorative and outdoor lighting; and HotSpring spas. More at www.masco.com.
A replay of a conference call discussing these results will be available on Masco’s website or by phone by dialing (866) 813-9403 from the United States, (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 through Nov. 25.