Masco Corporation Reports Second Quarter 2021 Results
Masco Corporation (“Masco”), one of the world’s leading manufacturers of branded home improvement and building products, reported its second quarter results.
“Our business performed exceptionally well during the second quarter, demonstrating the strength, diversification and resilience of our business,” said Masco President and CEO, Keith Allman. “We delivered our fourth consecutive quarter of double-digit sales growth, and our sixth consecutive quarter of adjusted margin expansion and double-digit adjusted earnings per share growth. We also continued our capital deployment strategy and leveraged our strong free cash flow by returning $507 million to shareholders through dividends and share repurchases during the quarter. Finally, we further improved our balance sheet and reduced future cash contributions by settling our domestic qualified defined-benefit pension plans during the quarter.”
2021 Second Quarter Commentary
On a reported basis, compared to second quarter 2020:
– Net sales increased 24 percent to $2,179 million; in local currency and excluding acquisitions and divestitures, net sales increased 18 percent
– In local currency, North American sales increased 15 percent and international sales increased 50 percent
– Gross margins increased 70 basis points to 36.3 percent from 35.6 percent
– Operating profit increased 29 percent to $437 million
– Operating margins increased 90 basis points to 20.1 percent from 19.2 percent
– (Loss) income from continuing operations was $(0.14) per share, compared to $0.80 per share, due to the settlement of domestic qualified defined-benefit pension plans
Compared to second quarter 2020, results for key financial measures, as adjusted for certain items and with a normalized tax rate of 25 percent, were as follows:
– Gross margins increased 50 basis points to 36.3 percent compared to 35.8 percent
– Operating profit increased 27 percent to $438 million from $344 million
– Operating margins increased 60 basis points to 20.1 percent compared to 19.5 percent
– Income from continuing operations increased to $1.14 per share, compared to $0.85 per share
– Liquidity as of June 30, 2021 was $1,769 million (including availability under our revolving credit facility)
– Plumbing Products’ net sales increased 53 percent; in local currency and excluding acquisitions and divestitures, sales increased 44 percent
– Decorative Architectural Products’ net sales decreased five percent; in local currency and excluding acquisitions, sales decreased seven percent
“We continue to see robust demand for our products across our end markets,” stated Allman. “We are effectively managing supply chain tightness and escalating logistics inflation to deliver value for our customers and our shareholders. Based on our strong performance for the first half of 2021 and continued strong demand in our international business and trade channel, we now anticipate earnings per share to be in the range of $3.65 to $3.75 per share, increased from our previous expectation of $3.50 to $3.70 per share,” concluded Allman.
Masco’s Board of Directors declared a quarterly dividend of $0.235 per common share, payable on August 30, 2021, to shareholders of record on August 13, 2021.
For the full second quarter results, click here.
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; 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.
David Chaika – Vice President, Treasurer & Investor Relations – email@example.com – (313) 792-5500
Source: Masco Corporation