Masco Corporation Reports Third Quarter 2021 Results

Masco Corporation, one of the world’s leading manufacturers of branded home improvement and building products, reported its third quarter results.

Key Results

-Sales increased 11 percent to $2,204 million
-Operating profit was $385 million and operating margin was 17.5 percent
-Earnings per share from continuing operations was $0.89 per share; adjusted earnings per share from continuing operations was $0.99 per share
-Returned $186 million to shareholders in the form of dividends and share repurchases
-Updating 2021 expected earnings per share to be in the range of $1.67 – $1.73, and on an adjusted earnings per share basis, in the range of $3.67 – $3.73, narrowed from the previous range of $3.65 – $3.75

“Masco delivered its fifth consecutive quarter of double-digit sales growth, demonstrating the resourcefulness and strength of our organization in the face of ongoing headwinds,” said Masco President and CEO, Keith Allman. “Our team effectively navigated supply chain challenges to deliver for our customers while successfully implementing pricing and cost productivity actions to offset persistent inflation. We also advanced our capital deployment strategy by returning approximately $186 million to shareholders in the form of dividends and share repurchases, bringing our year-to-date total dividends and share repurchases to $1.0 billion.”

2021 Third Quarter Commentary

On a reported basis, compared to third quarter 2020:

-Net sales increased 11 percent to $2,204 million; in local currency and excluding acquisitions and divestitures, net sales increased nine percent
-In local currency, North American sales increased nine percent and international sales increased 15 percent
-Gross margins decreased 370 basis points to 34.2 percent from 37.9 percent
-Operating profit decreased nine percent to $385 million
-Operating margins decreased 390 basis points to 17.5 percent from 21.4 percent
-Income from continuing operations was $0.89 per share, compared to $1.05 per share

Compared to third quarter 2020, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 25 percent, were as follows:

-Gross margins decreased 380 basis points to 34.2 percent compared to 38.0 percent
-Operating profit decreased nine percent to $385 million from $425 million
-Operating margins decreased 390 basis points to 17.5 percent compared to 21.4 percent
-Income from continuing operations decreased to $0.99 per share, compared to $1.06 per share

Liquidity as of September 30, 2021 was $1,854 million (including availability under our revolving credit facility)

Plumbing Products’ net sales increased 16 percent; in local currency and excluding acquisitions and divestitures, sales increased 13 percent

Decorative Architectural Products’ net sales increased four percent; excluding acquisitions, sales increased three percent

Allman continued, “Demand for our products remains strong across categories and channels, and we are continuing to enhance our operational efficiency and capitalize on opportunities while navigating supply chain constraints and inflation. Based on the strength of our year-to-date performance, we expect to deliver full year adjusted earnings per share in the range of $3.67 to $3.73 per share, representing approximately 19 percent growth at the midpoint compared to 2020. While we will provide further guidance on our fourth quarter earnings call, based on our current view of our business, we expect to achieve margin expansion and double-digit adjusted earnings per share growth in 2022, consistent with the long-term growth outlook we provided earlier this year.”

Dividend Declaration

Masco’s Board of Directors declared a quarterly dividend of $0.235 per common share, payable on November 29, 2021, to shareholders of record on November 12, 2021.

For the complete press release, click here.

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; 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.

Contact:

David Chaika – Vice President, Treasurer & Investor Relations – david_chaika@mascohq.com – (313) 792-5500

Source: Masco Corporation