Masco income down in Q2
Home improvement products company Masco, parent of Delta Faucet and Behr paint, had lower sales and earnings in the second quarter, tied to lower North American housing starts, but expressed optimism on rising international sales and recent acquisitions.
The company had income from continuing operations of $186 million, down 13.5 percent from $215 million in last year’s second quarter.
The company saw sales fall 6 percent on a lower sales volume of installation and other services, as well as assembled cabinets, windows and doors for the new home construction market. Sales were $3.1 billion compared with $3.4 billion last year.
North American sales declined 10 percent while international sales increased 14 percent, the company noted. The North American market was hampered by less consumer interest in “big ticket” home improvement items, “as well as a less favorable product mix and increased commodity cost.”
“Results were aided by recent acquisitions, increased sales volume of paints and stains and international operations, particularly plumbing products,” the company said in a statement.
During the quarter, Masco acquired wall panel and millwork provider Erickson Construction Co. and Guy Evans Inc., an installer of millwork, doors, windows and bath hardware.
The company said its results were better than expected and expressed optimism about the second half of the fiscal year.
“The company believes that the negative impact [of lower housing starts] will be largely offset by a combination of the stronger-than-expected first half results, the continued favorable effect of currency translation, share repurchases, recent acquisitions, selling price increases, market share gains and the profit improvement programs it is pursuing,” Masco said.
Based in Taylor, Mich., Masco is one of the world’s largest manufacturers of home improvement products, including Home Depot’s Behr paint brand, Delta Faucet, KraftMaid cabinets, PowerShot tools and Milgard windows.