Highlights
- Net sales decreased 3 percent to $1,926 million
- Operating profit increased 1 percent to $318 million; adjusted
operating profit increased 3 percent to $322 million
- Operating profit margin increased 60 basis points to 16.5
percent; adjusted operating profit margin increased 90 basis points
to 16.7 percent
- Earnings per share was $0.97 per share; adjusted earnings per
share grew 8 percent to $0.93 per share
- Repurchased 2.1 million shares for $148 million
- Continue to expect 2024 earnings per share in the range of
$4.00 – $4.25 per share
Masco Corporation (NYSE: MAS), one of the world’s leading
manufacturers of branded home improvement and building products,
reported its first quarter 2024 results.
2024 First Quarter
Results
- On a reported basis, compared to first quarter 2023:
- Net sales decreased 3 percent to $1,926 million; in local
currency and excluding acquisitions, net sales decreased 4 percent
- Plumbing Products’ net sales decreased 2 percent; in local
currency and excluding acquisitions, net sales decreased 4
percent
- Decorative Architectural Products’ net sales decreased 3
percent
- In local currency, North American sales decreased 2 percent and
international sales decreased 5 percent
- Gross margin increased 180 basis points to 35.6 percent from
33.8 percent
- Operating profit increased 1 percent to $318 million from $315
million
- Operating margin increased 60 basis points to 16.5 percent from
15.9 percent
- Net income increased to $0.97 per share, compared to $0.90 per
share
- Compared to first quarter 2023, results for key financial
measures, as adjusted for certain items (see Exhibit A) and with a
normalized tax rate of 24.5 percent, were as follows:
- Gross margin increased 210 basis points to 35.7 percent from
33.6 percent
- Operating profit increased 3 percent to $322 million from $312
million
- Operating margin increased 90 basis points to 16.7 percent from
15.8 percent
- Net income increased 8 percent to $0.93 per share, compared to
$0.86 per share
- Liquidity at the end of the first quarter was $1,319 million
(including availability under revolving credit facility)
“We delivered another quarter of strong results,” said Masco
President and CEO, Keith Allman. “We expanded adjusted operating
profit margin by 90 basis points and grew adjusted earnings per
share by 8 percent through improved operational efficiencies and
our continued focus on execution. Additionally, our balanced
capital allocation strategy enabled us to return $212 million to
shareholders through dividends and share repurchases during the
quarter.”
“With the year beginning largely as expected, we continue to
anticipate that 2024 adjusted earnings per share will be in the
range of $4.00 to $4.25 per share,” said Allman. “Through our
ongoing investments in our market leading brands, innovation, and
service and our disciplined capital allocation strategy, we are
confident in Masco’s ability to continue to deliver long-term
shareholder value.”
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; Liberty® branded decorative and functional hardware; 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 2024 first quarter supplemental material, including a
presentation in PDF format, is available on the Company’s website
at www.masco.com.
Conference Call Details
A conference call regarding items contained in this release is
scheduled for Wednesday, April 24, 2024 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 888-259-6580 or
206-962-3782. Please use the conference identification number
73983883.
The conference call will be webcast simultaneously and in its
entirety through the Company’s website. Shareholders, media
representatives and others interested in Masco may participate in
the webcast by registering through the Investor Relations section
on the Company’s website.
A replay of the call will be available on Masco’s website or by
phone by dialing 877-674-7070 or 416-764-8692. Please use the
playback passcode 983883#. The telephone replay will be available
approximately two hours after the end of the call and continue
through May 23, 2024.
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,
to develop innovative products and respond to changing consumer
purchasing practices and preferences, our ability to maintain our
public image and reputation, our ability to maintain our
competitive position in our industries, our reliance on key
customers, the cost and availability of materials, our dependence
on 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 acquired and may in the future acquire, our
ability to attract, develop and retain a talented and diverse
workforce, risks associated with cybersecurity vulnerabilities,
threats and attacks and risks associated with our reliance on
information systems and 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.
MASCO CORPORATION
Condensed Consolidated Statements of
Operations - Unaudited
For the Three Months Ended March 31,
2024 and 2023
(in millions, except per
common share data)
Three Months Ended March
31,
2024
2023
Net sales
$
1,926
$
1,979
Cost of sales
1,241
1,310
Gross profit
685
669
Selling, general and administrative
expenses
367
354
Operating profit
318
315
Other income (expense), net:
Interest expense
(25
)
(28
)
Other, net
(5
)
(2
)
(30
)
(30
)
Income before income taxes
289
285
Income tax expense
60
64
Net income
229
221
Less: Net income attributable to
noncontrolling interest
14
16
Net income attributable to Masco
Corporation
$
215
$
205
Income per common share attributable to
Masco Corporation (diluted):
Net income
$
0.97
$
0.90
Average diluted common shares
outstanding
221
227
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months Ended March 31,
2024 and 2023
(dollars in millions)
Three Months Ended March
31,
2024
2023
Gross Profit,
Selling, General and Administrative Expenses, and Operating Profit
Reconciliations
Net sales
$
1,926
$
1,979
Gross profit, as reported
$
685
$
669
Rationalization charges (income)
(1)
3
(4
)
Gross profit, as adjusted
$
688
$
665
Gross margin, as reported
35.6
%
33.8
%
Gross margin, as adjusted
35.7
%
33.6
%
Selling, general and administrative
expenses, as reported
$
367
$
354
Rationalization charges
—
1
Selling, general and administrative
expenses, as adjusted
$
367
$
353
Selling, general and administrative
expenses as percent of net sales, as reported
19.1
%
17.9
%
Selling, general and administrative
expenses as percent of net sales, as adjusted
19.1
%
17.8
%
Operating profit, as reported
$
318
$
315
Rationalization charges (income)
(1)
3
(3
)
Operating profit, as adjusted
$
322
$
312
Operating margin, as reported
16.5
%
15.9
%
Operating margin, as adjusted
16.7
%
15.8
%
(1)
Represents income for the three months
ended March 31, 2023 due to the sale of excess and obsolete
inventory that was related to a rationalization activity, partially
offset by rationalization charges.
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Exhibit A: Reconciliations -
Unaudited
For the Three Months Ended March 31,
2024 and 2023
(in millions, except per
common share data)
Three Months Ended March
31,
2024
2023
Income Per Common
Share Reconciliations
Income before income taxes, as
reported
$
289
$
285
Rationalization charges (income)
(1)
3
(3
)
Realized (gains) from private equity
funds
—
(1
)
Income before income taxes, as
adjusted
292
281
Tax at 24.5% rate
(72
)
(69
)
Less: Net income attributable to
noncontrolling interest
14
16
Net income, as adjusted
$
206
$
196
Net income per common share, as
adjusted
$
0.93
$
0.86
Average diluted common shares
outstanding
221
227
(1)
Represents income for the three months
ended March 31, 2023 due to the sale of excess and obsolete
inventory that was related to a rationalization activity, partially
offset by rationalization charges.
Outlook for the Year Ended December 31,
2024
Year Ended December 31,
2024
Low End
High End
Income Per Common
Share Reconciliation
Net income per common share
$
4.00
$
4.25
Rationalization charges
—
—
Net income per common share, as
adjusted
$
4.00
$
4.25
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Condensed Consolidated Balance Sheets
and Other Financial Data - Unaudited
March 31, 2024 and December 31,
2023
(dollars in millions)
March 31, 2024
December 31, 2023
Balance Sheet
Assets
Current assets:
Cash and cash investments
$
368
$
634
Receivables
1,310
1,090
Inventories
1,059
1,022
Prepaid expenses and other
112
110
Total current assets
2,850
2,856
Property and equipment, net
1,111
1,121
Goodwill
598
604
Other intangible assets, net
367
377
Operating lease right-of-use assets
262
268
Other assets
148
139
Total assets
$
5,336
$
5,363
Liabilities
Current liabilities:
Accounts payable
$
899
$
840
Notes payable
52
3
Accrued liabilities
690
852
Total current liabilities
1,641
1,695
Long-term debt
2,945
2,945
Noncurrent operating lease liabilities
252
258
Other liabilities
340
349
Total liabilities
5,179
5,247
Redeemable noncontrolling interest
—
18
Equity
157
98
Total liabilities and equity
$
5,336
$
5,363
As of March 31,
2024
2023
Other Financial Data
Working capital days
Receivable days
55
54
Inventory days
81
80
Payable days
71
70
Working capital
$
1,470
$
1,612
Working capital as a % of sales (LTM)
18.6
%
19.1
%
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Condensed Consolidated Statements of
Cash Flows and Other Financial Data - Unaudited
For the Three Months Ended March 31,
2024 and 2023
(dollars in millions)
Three Months Ended March
31,
2024
2023
Cash Flows From (For) Operating
Activities:
Cash provided by operating activities
$
314
$
286
Working capital changes
(409
)
(253
)
Net cash (for) from operating
activities
(94
)
33
Cash Flows From (For) Financing
Activities:
Purchase of Company common stock
(145
)
(53
)
Cash dividends paid
(64
)
(65
)
Purchase of redeemable noncontrolling
interest
(15
)
—
Proceeds from revolving credit borrowings,
net
49
210
Proceeds from the exercise of stock
options
75
9
Employee withholding taxes paid on
stock-based compensation
(33
)
(20
)
Decrease in debt, net
(1
)
(3
)
Net cash (for) from financing
activities
(134
)
78
Cash Flows From (For) Investing
Activities:
Capital expenditures
(31
)
(61
)
Other, net
(2
)
2
Net cash for investing activities
(33
)
(59
)
Effect of exchange rate changes on cash
and cash investments
(6
)
6
Cash and Cash Investments:
(Decrease) increase for the period
(266
)
58
At January 1
634
452
At March 31
$
368
$
510
As of March 31,
2024
2023
Liquidity
Cash and cash investments
$
368
$
510
Revolver availability
951
790
Total Liquidity
$
1,319
$
1,300
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months Ended March 31,
2024 and 2023
(dollars in millions)
Three Months Ended March
31,
2024
2023
Change
Plumbing Products
Net sales
$
1,192
$
1,222
(2
)%
Operating profit, as reported
$
226
$
206
Operating margin, as reported
19.0
%
16.9
%
Rationalization charges (income)
3
(4
)
Operating profit, as adjusted
228
202
Operating margin, as adjusted
19.1
%
16.5
%
Depreciation and amortization
26
25
EBITDA, as adjusted
$
255
$
227
Decorative Architectural
Products
Net sales
$
734
$
757
(3
)%
Operating profit, as reported
$
124
$
132
Operating margin, as reported
16.9
%
17.4
%
Rationalization charges
1
1
Operating profit, as adjusted
125
133
Operating margin, as adjusted
17.0
%
17.6
%
Depreciation and amortization
10
8
EBITDA, as adjusted
$
134
$
141
Total
Net sales
$
1,926
$
1,979
(3
)%
Operating profit, as reported -
segment
$
350
$
338
General corporate expense, net
(31
)
(23
)
Operating profit, as reported
318
315
Operating margin, as reported
16.5
%
15.9
%
Rationalization charges (income) -
segment
3
(3
)
Operating profit, as adjusted
322
312
Operating margin, as adjusted
16.7
%
15.8
%
Depreciation and amortization -
segment
36
33
Depreciation and amortization - other
2
2
EBITDA, as adjusted
$
360
$
347
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
North American and International Data -
Unaudited
For the Three Months Ended March 31,
2024 and 2023
(dollars in millions)
Three Months Ended March
31,
2024
2023
Change
North American
Net sales
$
1,526
$
1,555
(2
)%
Operating profit, as reported
$
285
$
266
Operating margin, as reported
18.7
%
17.1
%
Rationalization charges (income)
2
(3
)
Operating profit, as adjusted
287
263
Operating margin, as adjusted
18.8
%
16.9
%
Depreciation and amortization
23
21
EBITDA, as adjusted
$
311
$
284
International
Net sales
$
400
$
424
(6
)%
Operating profit, as reported
$
65
$
72
Operating margin, as reported
16.3
%
17.0
%
Rationalization charges
1
—
Operating profit, as adjusted
66
72
Operating margin, as adjusted
16.5
%
17.0
%
Depreciation and amortization
12
12
EBITDA, as adjusted
$
78
$
84
Total
Net sales
$
1,926
$
1,979
(3
)%
Operating profit, as reported -
segment
$
350
$
338
General corporate expense, net
(31
)
(23
)
Operating profit, as reported
318
315
Operating margin, as reported
16.5
%
15.9
%
Rationalization charges (income) -
segment
3
(3
)
Operating profit, as adjusted
322
312
Operating margin, as adjusted
16.7
%
15.8
%
Depreciation and amortization -
segment
36
33
Depreciation and amortization - other
2
2
EBITDA, as adjusted
$
360
$
347
Historical information is available on our website.
Amounts may not add due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424871631/en/
Robin Zondervan Vice President, Investor Relations and FP&A
313.792.5500 robin_zondervan@mascohq.com
Grafico Azioni Masco (NYSE:MAS)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Masco (NYSE:MAS)
Storico
Da Nov 2023 a Nov 2024
