Highlights
- Net sales were in line with prior year at $1,983 million
- Operating profit decreased 7 percent to $357 million; adjusted
operating profit increased 3 percent to $360 million
- Operating profit margin decreased 140 basis points to 18.0
percent; adjusted operating profit margin increased 60 basis points
to 18.2 percent
- Earnings per share was $0.77 per share; adjusted earnings per
share grew 8 percent to $1.08 per share
- Repurchased 2.5 million shares for $192 million
- Expect 2024 earnings per share in the range of $3.74 - $3.84
per share, and on an adjusted basis, $4.05 - $4.15 per share
Masco Corporation (NYSE: MAS), one of the world’s leading
manufacturers of branded home improvement and building products,
reported its third quarter 2024 results.
2024 Third Quarter
Results
- On a reported basis, compared to third quarter 2023:
- Net sales were in line with prior year at $1,983 million; in
local currency net sales increased 1 percent
- Plumbing Products’ net sales increased 2 percent; in local
currency and excluding acquisitions, net sales increased 1
percent
- Decorative Architectural Products’ net sales decreased 3
percent; in local currency and excluding divestitures, net sales
decreased 1 percent
- In local currency, North American sales were in line with prior
year and International sales increased 3 percent
- Gross margin decreased 100 basis points to 36.6 percent from
37.6 percent
- Operating profit decreased 7 percent to $357 million from $383
million
- Operating margin decreased 140 basis points to 18.0 percent
from 19.4 percent
- Net income decreased to $0.77 per share, compared to $1.10 per
share
- Compared to third 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 90 basis points to 36.7 percent from
35.8 percent
- Operating profit increased 3 percent to $360 million from $348
million
- Operating margin increased 60 basis points to 18.2 percent from
17.6 percent
- Net income increased 8 percent to $1.08 per share, compared to
$1.00 per share
- Liquidity at the end of the third quarter was $1,646 million
(including availability under our revolving credit facility)
“We delivered another quarter of strong operating results,” said
Masco President and CEO, Keith Allman. “Our adjusted operating
margin expanded 60 basis points to 18.2 percent, marking the sixth
consecutive quarter of year-over-year margin expansion, and our
adjusted earnings per share grew by 8 percent. Additionally, we
executed on our capital allocation strategy by returning $255
million to shareholders though dividends and share
repurchases.”
“We remain focused on driving the full potential of our
portfolio with our leading brands, innovative products, and
exceptional customer service. For the remainder of the year, we
expect market demand to remain challenged and now anticipate our
2024 adjusted earnings per share to be in the range of $4.05 to
$4.15, compared to our previous expectation of $4.05 to $4.20,”
said Allman. “With our ongoing focus on operational efficiencies
and cost savings initiatives, we remain well positioned to drive
operating margin expansion for the full year. Additionally, we
remain confident in the long-term fundamentals of the repair and
remodel market and our ability to deliver shareholder value.”
Dividend Declaration
Masco’s Board of Directors declared a quarterly dividend of
$0.29 per share, payable on November 25, 2024 to shareholders of
record on November 8, 2024.
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; 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 third 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 Tuesday, October 29, 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 800-549-8228 or
646-564-2877. Please use the conference identification number
72522.
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 888-660-6264 or 646-517-3975. Please use the
playback passcode 72522#. The telephone replay will be available
approximately two hours after the end of the call and continue
through November 29, 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 and Nine Months Ended
September 30, 2024 and 2023
(in millions, except per common share
data)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net sales
$
1,983
$
1,979
$
6,000
$
6,085
Cost of sales
1,258
1,235
3,805
3,903
Gross profit
725
744
2,195
2,182
Selling, general and administrative
expenses
368
361
1,123
1,081
Operating profit
357
383
1,073
1,101
Other income (expense), net:
Interest expense
(25
)
(26
)
(75
)
(82
)
Other, net
(85
)
(11
)
(95
)
(14
)
(109
)
(37
)
(170
)
(96
)
Income before income taxes
248
346
903
1,005
Income tax expense
68
86
222
246
Net income
180
260
681
759
Less: Net income attributable to
noncontrolling interest
13
11
41
42
Net income attributable to Masco
Corporation
$
167
$
249
$
640
$
717
Income per common share attributable to
Masco Corporation (diluted):
Net income
$
0.77
$
1.10
$
2.91
$
3.17
Average diluted common shares
outstanding
218
226
220
226
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Exhibit A: Reconciliations -
Unaudited
For the Three and Nine Months Ended
September 30, 2024 and 2023
(dollars in millions)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Gross Profit,
Selling, General and Administrative Expenses, and Operating Profit
Reconciliations
Net sales
$
1,983
$
1,979
$
6,000
$
6,085
Gross profit, as reported
$
725
$
744
$
2,195
$
2,182
Rationalization charges
2
5
6
2
Insurance settlement (1)
—
(40
)
—
(40
)
Gross profit, as adjusted
$
727
$
709
$
2,202
$
2,144
Gross margin, as reported
36.6
%
37.6
%
36.6
%
35.9
%
Gross margin, as adjusted
36.7
%
35.8
%
36.7
%
35.2
%
Selling, general and administrative
expenses, as reported
$
368
$
361
$
1,123
$
1,081
Rationalization charges
—
—
1
1
Selling, general and administrative
expenses, as adjusted
$
368
$
361
$
1,121
$
1,080
Selling, general and administrative
expenses as a percent of net sales, as reported
18.6
%
18.2
%
18.7
%
17.8
%
Selling, general and administrative
expenses as a percent of net sales, as adjusted
18.6
%
18.2
%
18.7
%
17.7
%
Operating profit, as reported
$
357
$
383
$
1,073
$
1,101
Rationalization charges
2
5
8
3
Insurance settlement (1)
—
(40
)
—
(40
)
Operating profit, as adjusted
$
360
$
348
$
1,081
$
1,064
Operating margin, as reported
18.0
%
19.4
%
17.9
%
18.1
%
Operating margin, as adjusted
18.2
%
17.6
%
18.0
%
17.5
%
(1)
Represents income for the three and nine
months ended September 30, 2023 from the receipt of an insurance
settlement payment.
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Exhibit A: Reconciliations -
Unaudited
For the Three and Nine Months Ended
September 30, 2024 and 2023
(in millions, except per common share
data)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Income Per Common
Share Reconciliations
Income before income taxes, as
reported
$
248
$
346
$
903
$
1,005
Rationalization charges
2
5
8
3
Loss on sale of business (1)
81
—
81
—
Realized (gains) from private equity
funds
(1
)
—
(1
)
(1
)
Loss from equity investments, net
—
1
—
1
Insurance settlement (2)
—
(40
)
—
(40
)
Income before income taxes, as
adjusted
330
312
990
968
Tax at 24.5% rate
(81
)
(76
)
(243
)
(237
)
Less: Net income attributable to
noncontrolling interest
13
11
41
42
Net income, as adjusted
$
236
$
225
$
706
$
689
Net income per common share, as
adjusted
$
1.08
$
1.00
$
3.21
$
3.05
Average diluted common shares
outstanding
218
226
220
226
(1)
Represents the preliminary loss for the
three and nine months ended September 30, 2024 from the sale of our
Kichler Lighting business.
(2)
Represents income for the three and nine
months ended September 30, 2023 from the receipt of an insurance
settlement payment.
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
$
3.74
$
3.84
Rationalization charges
0.03
0.03
Loss on sale of business (1)
0.28
0.28
Net income per common share, as
adjusted
$
4.05
$
4.15
(1)
Represents the preliminary loss from the
sale of our Kichler Lighting business.
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
September 30, 2024 and December 31,
2023
(dollars in millions)
September 30, 2024
December 31, 2023
Balance Sheet
Assets
Current assets:
Cash and cash investments
$
646
$
634
Receivables
1,152
1,090
Inventories
1,013
1,022
Prepaid expenses and other
153
110
Total current assets
2,965
2,856
Property and equipment, net
1,125
1,121
Goodwill
610
604
Other intangible assets, net
230
377
Operating lease right-of-use assets
238
268
Other assets
128
139
Total assets
$
5,296
$
5,363
Liabilities
Current liabilities:
Accounts payable
$
874
$
840
Notes payable
3
3
Accrued liabilities
742
852
Total current liabilities
1,618
1,695
Long-term debt
2,945
2,945
Noncurrent operating lease liabilities
230
258
Other liabilities
360
349
Total liabilities
5,154
5,247
Redeemable noncontrolling interest
—
18
Equity
142
98
Total liabilities and equity
$
5,296
$
5,363
As of September 30,
2024
2023
Other Financial Data
Working capital days
Receivable days
50
54
Inventory days
78
77
Payable days
70
71
Working capital
$
1,291
$
1,447
Working capital as a % of sales (LTM)
16.4
%
18.1
%
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 Nine Months Ended September 30,
2024 and 2023
(dollars in millions)
Nine Months Ended September
30,
2024
2023
Cash Flows From (For) Operating
Activities:
Cash provided by operating activities
$
957
$
954
Working capital changes
(288
)
(26
)
Net cash from operating activities
668
928
Cash Flows From (For) Financing
Activities:
Purchase of Company common stock
(482
)
(126
)
Cash dividends paid
(191
)
(193
)
Purchase of redeemable noncontrolling
interest
(15
)
—
Dividends paid to noncontrolling
interest
(25
)
(49
)
Proceeds from short-term borrowings
—
77
Payment of short-term borrowings
—
(11
)
Payment of term loan
—
(200
)
Proceeds from the exercise of stock
options
76
37
Employee withholding taxes paid on
stock-based compensation
(34
)
(29
)
Decrease in debt, net
(2
)
(4
)
Net cash for financing activities
(673
)
(498
)
Cash Flows From (For) Investing
Activities:
Capital expenditures
(112
)
(181
)
Acquisition of business, net of cash
acquired
(4
)
(136
)
Proceeds from disposition of business, net
of cash disposed
131
—
Other, net
(3
)
(4
)
Net cash from (for) investing
activities
12
(321
)
Effect of exchange rate changes on cash
and cash investments
5
(1
)
Cash and Cash Investments:
Increase for the period
12
108
At January 1
634
452
At September 30
$
646
$
560
As of September 30,
2024
2023
Liquidity
Cash and cash investments
$
646
$
560
Revolver availability
1,000
1,000
Total Liquidity
$
1,646
$
1,560
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Segment Data - Unaudited
For the Three and Nine Months Ended
September 30, 2024 and 2023
(dollars in millions)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
Change
2024
2023
Change
Plumbing Products
Net sales
$
1,219
$
1,191
2
%
$
3,665
$
3,638
1
%
Operating profit, as reported
$
240
$
223
$
713
$
673
Operating margin, as reported
19.7
%
18.7
%
19.5
%
18.5
%
Rationalization charges (income)
2
2
7
(1
)
Operating profit, as adjusted
242
225
720
672
Operating margin, as adjusted
19.9
%
18.9
%
19.6
%
18.5
%
Depreciation and amortization
26
26
80
76
EBITDA, as adjusted
$
269
$
251
$
799
$
748
Decorative Architectural
Products
Net sales
$
764
$
788
(3
)%
$
2,336
$
2,447
(5
)%
Operating profit, as reported
$
138
$
181
$
436
$
493
Operating margin, as reported
18.1
%
23.0
%
18.7
%
20.1
%
Rationalization charges
—
3
1
4
Insurance settlement
—
(40
)
—
(40
)
Operating profit, as adjusted
138
144
437
457
Operating margin, as adjusted
18.1
%
18.3
%
18.7
%
18.7
%
Depreciation and amortization
9
9
28
26
EBITDA, as adjusted
$
147
$
153
$
465
$
483
Total
Net sales
$
1,983
$
1,979
—
%
$
6,000
$
6,085
(1
)%
Operating profit, as reported -
segment
$
378
$
404
$
1,149
$
1,166
General corporate expense, net
(21
)
(21
)
(76
)
(65
)
Operating profit, as reported
357
383
1,073
1,101
Operating margin, as reported
18.0
%
19.4
%
17.9
%
18.1
%
Rationalization charges - segment
2
5
8
3
Insurance settlement
—
(40
)
—
(40
)
Operating profit, as adjusted
360
348
1,081
1,064
Operating margin, as adjusted
18.2
%
17.6
%
18.0
%
17.5
%
Depreciation and amortization -
segment
36
35
108
102
Depreciation and amortization - other
2
2
5
5
EBITDA, as adjusted
$
397
$
385
$
1,194
$
1,171
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 and Nine Months Ended
September 30, 2024 and 2023
(dollars in millions)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
Change
2024
2023
Change
North American
Net sales
$
1,595
$
1,602
—
%
$
4,815
$
4,875
(1
)%
Operating profit, as reported
$
322
$
348
$
967
$
972
Operating margin, as reported
20.2
%
21.7
%
20.1
%
19.9
%
Rationalization charges
2
5
5
3
Insurance settlement
—
(40
)
—
(40
)
Operating profit, as adjusted
324
313
973
935
Operating margin, as adjusted
20.3
%
19.5
%
20.2
%
19.2
%
Depreciation and amortization
23
22
69
65
EBITDA, as adjusted
$
347
$
335
$
1,042
$
1,000
International
Net sales
$
388
$
377
3
%
$
1,185
$
1,210
(2
)%
Operating profit, as reported
$
56
$
56
$
182
$
194
Operating margin, as reported
14.4
%
14.9
%
15.4
%
16.0
%
Rationalization charges
—
—
2
—
Operating profit, as adjusted
56
56
184
194
Operating margin, as adjusted
14.4
%
14.9
%
15.5
%
16.0
%
Depreciation and amortization
13
13
38
37
EBITDA, as adjusted
$
69
$
69
$
222
$
231
Total
Net sales
$
1,983
$
1,979
—
%
$
6,000
$
6,085
(1
)%
Operating profit, as reported -
segment
$
378
$
404
$
1,149
$
1,166
General corporate expense, net
(21
)
(21
)
(76
)
(65
)
Operating profit, as reported
357
383
1,073
1,101
Operating margin, as reported
18.0
%
19.4
%
17.9
%
18.1
%
Rationalization charges - segment
2
5
8
3
Insurance settlement
—
(40
)
—
(40
)
Operating profit, as adjusted
360
348
1,081
1,064
Operating margin, as adjusted
18.2
%
17.6
%
18.0
%
17.5
%
Depreciation and amortization -
segment
36
35
108
102
Depreciation and amortization - other
2
2
5
5
EBITDA, as adjusted
$
397
$
385
$
1,194
$
1,171
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/20241029650200/en/
Investor Contact 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
