Masco Corporation Reports Third Quarter 2022 Results

Masco Corporation (“Masco” or the “Company”), one of the world’s leading manufacturers of branded home improvement and building products, reported its third quarter results.

2022 Third Quarter Results

• On a reported basis, compared to third quarter 2021:
  • Net sales of $2,204 million matched prior year; in local currency, net sales increased 3 percent
  • North American sales increased 2 percent and international sales decreased 9 percent; in local currency, North American sales increased 3 percent and international sales increased 5 percent
  • Gross margin decreased 270 basis points to 31.5 percent from 34.2 percent
  • Operating profit decreased 9 percent to $351 million
  • Operating margin decreased 160 basis points to 15.9 percent from 17.5 percent
  • Net income increased to $0.97 per share, compared to $0.89 per share
• Compared to third quarter 2021, 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 margin decreased 270 basis points to 31.5 percent compared to 34.2 percent
  • Operating profit decreased 9 percent to $351 million from $385 million
  • Operating margin decreased 160 basis points to 15.9 percent compared to 17.5 percent
  • Net income decreased to $0.98 per share, compared to $0.99 per share
• Liquidity as of September 30, 2022 was $1,464 million (including availability under revolving credit facility)
• Plumbing Products’ net sales were flat to prior year third quarter; in local currency, sales increased 5 percent
• Decorative Architectural Products’ net sales increased 1 percent

“During the third quarter, our pricing actions helped mitigate the impact of volume declines and persistent supply chain challenges,” said Masco President and CEO, Keith Allman. “As a result, we delivered modest sales growth of three percent in local currency.”

“As market conditions continue to evolve, we now anticipate lower market demand, elevated operational costs, and additional foreign currency headwinds in the fourth quarter,” continued Allman. “Given these challenges, we have lowered our guidance for full year adjusted earnings per share to $3.70 – $3.80 per share. We are enacting plans to address the lower market demand and elevated operational costs. We remain confident in the power of our leading brands and the underlying positive long-term structural factors in housing that are supportive of our repair and remodel-oriented business.”

Dividend and Share Repurchase Authorization

Masco’s Board of Directors declared a quarterly dividend of $0.28 per share payable on November 28, 2022 to shareholders of record on November 10, 2022.

The Board also authorized a new $2.0 billion share repurchase program effective October 20, 2022, replacing the existing authorization.

“Our dividend and share repurchase program are important pillars of our capital allocation strategy to deliver enhanced value to shareholders. The new $2.0 billion share repurchase program underscores the Company’s resilient business model, strong financial position and the Board’s confidence in Masco’s future,” concluded Allman.

To read the full third quarter results, 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