Highlights
- Net sales decreased 2 percent to $2,091 million
- Operating profit decreased 1 percent to $397 million; adjusted
operating profit decreased 1 percent to $399 million
- Operating profit margin increased 10 basis points to 19.0
percent; adjusted operating profit margin increased 10 basis points
to 19.1 percent
- Earnings per share was $1.17 per share; adjusted earnings per
share grew 1 percent to $1.20 per share
- Repurchased 2.0 million shares for $143 million
- Expect 2024 earnings per share in the range of $4.03 - $4.18
per share, and on an adjusted basis, $4.05 - $4.20 per share
Masco Corporation (NYSE: MAS), one of the world’s leading
manufacturers of branded home improvement and building products,
reported its second quarter 2024 results.
2024 Second Quarter
Results
- On a reported basis, compared to second quarter 2023:
- Net sales decreased 2 percent to $2,091 million; in local
currency and excluding acquisitions, net sales decreased 2 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 7
percent
- In local currency, North American and International sales both
decreased 1 percent
- Gross margin increased 130 basis points to 37.5 percent from
36.2 percent
- Operating profit decreased 1 percent to $397 million from $403
million
- Operating margin increased 10 basis points to 19.0 percent from
18.9 percent
- Net income increased to $1.17 per share, compared to $1.16 per
share
- Compared to second 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 140 basis points to 37.6 percent from
36.2 percent
- Operating profit decreased 1 percent to $399 million from $404
million
- Operating margin increased 10 basis points to 19.1 percent from
19.0 percent
- Net income increased 1 percent to $1.20 per share, compared to
$1.19 per share
- Liquidity at the end of the second quarter was $1,398 million
(including availability under our revolving credit facility)
“During the first half of this year, we continued to deliver
solid results and shareholder value, despite a challenging
environment, through the strength of our operating performance,”
said Masco President and CEO, Keith Allman. “In the second quarter,
we delivered strong adjusted operating profit margin of 19.1
percent and grew adjusted earnings per share by 1 percent.
Additionally, our capital allocation strategy enabled us to return
$206 million to shareholders though dividends and share
repurchases.”
“In the second half of the year, we anticipate ongoing demand
headwinds as market conditions remain challenged. However, with our
continued focus on execution and operational efficiencies, we are
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 the strength of
our brands and product portfolio,” said Allman. “We now anticipate
our 2024 adjusted earnings per share to be in the range of $4.05 to
$4.20 per share, compared to our previous expectations of $4.00 to
$4.25 per share.”
Dividend Declaration
Masco’s Board of Directors declared a quarterly dividend of
$0.29 per share, payable on August 19, 2024 to shareholders of
record on August 2, 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; Kichler® decorative and outdoor
lighting; 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 second 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 Thursday, July 25, 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 45864.
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 45864#. The telephone replay will be available
approximately two hours after the end of the call and continue
through August 25, 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 Six Months Ended June
30, 2024 and 2023
(in millions, except per
common share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net sales
$
2,091
$
2,127
$
4,017
$
4,106
Cost of sales
1,306
1,358
2,547
2,668
Gross profit
785
769
1,470
1,438
Selling, general and administrative
expenses
388
366
755
720
Operating profit
397
403
715
718
Other income (expense), net:
Interest expense
(26
)
(28
)
(50
)
(56
)
Other, net
(5
)
(1
)
(10
)
(3
)
(31
)
(29
)
(61
)
(59
)
Income before income taxes
366
374
655
659
Income tax expense
94
96
154
160
Net income
272
278
501
499
Less: Net income attributable to
noncontrolling interest
14
15
28
31
Net income attributable to Masco
Corporation
$
258
$
263
$
473
$
468
Income per common share attributable to
Masco Corporation (diluted):
Net income
$
1.17
$
1.16
$
2.14
$
2.07
Average diluted common shares
outstanding
220
226
221
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 Six Months Ended June
30, 2024 and 2023
(dollars in millions)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Gross Profit,
Selling, General and Administrative Expenses, and Operating Profit
Reconciliations
Net sales
$
2,091
$
2,127
$
4,017
$
4,106
Gross profit, as reported
$
785
$
769
$
1,470
$
1,438
Rationalization charges (income)
(1)
1
1
5
(3
)
Gross profit, as adjusted
$
786
$
770
$
1,475
$
1,435
Gross margin, as reported
37.5
%
36.2
%
36.6
%
35.0
%
Gross margin, as adjusted
37.6
%
36.2
%
36.7
%
34.9
%
Selling, general and administrative
expenses, as reported
$
388
$
366
$
755
$
720
Rationalization charges
1
—
1
1
Selling, general and administrative
expenses, as adjusted
$
387
$
366
$
754
$
719
Selling, general and administrative
expenses as a percent of net sales, as reported
18.6
%
17.2
%
18.8
%
17.5
%
Selling, general and administrative
expenses as a percent of net sales, as adjusted
18.5
%
17.2
%
18.8
%
17.5
%
Operating profit, as reported
$
397
$
403
$
715
$
718
Rationalization charges (income)
(1)
2
1
6
(2
)
Operating profit, as adjusted
$
399
$
404
$
721
$
716
Operating margin, as reported
19.0
%
18.9
%
17.8
%
17.5
%
Operating margin, as adjusted
19.1
%
19.0
%
17.9
%
17.4
%
(1)
Represents income for the six months ended
June 30, 2023 due to the sale of excess and obsolete inventory that
was related to a rationalization activity, partially offset by
rationalization charges.
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Exhibit A: Reconciliations -
Unaudited
For the Three and Six Months Ended June
30, 2024 and 2023
(in millions, except per
common share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Income Per Common
Share Reconciliations
Income before income taxes, as
reported
$
366
$
374
$
655
$
659
Rationalization charges (income)
(1)
2
1
6
(2
)
Realized (gains) from private equity
funds
—
—
—
(1
)
Income before income taxes, as
adjusted
368
375
660
656
Tax at 24.5% rate
(90
)
(92
)
(162
)
(161
)
Less: Net income attributable to
noncontrolling interest
14
15
28
31
Net income, as adjusted
$
264
$
268
$
470
$
464
Net income per common share, as
adjusted
$
1.20
$
1.19
$
2.13
$
2.05
Average diluted common shares
outstanding
220
226
221
226
(1)
Represents income for the six months ended
June 30, 2023 due to the sale of excess and obsolete inventory that
was related to a rationalization activity, partially offset by
rationalization charges.
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
$
4.03
$
4.18
Rationalization charges
0.02
0.02
Net income per common share, as
adjusted
$
4.05
$
4.20
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
June 30, 2024 and December 31,
2023
(dollars in millions)
June 30, 2024
December 31, 2023
Balance Sheet
Assets
Current assets:
Cash and cash investments
$
398
$
634
Receivables
1,314
1,090
Inventories
1,057
1,022
Prepaid expenses and other
129
110
Total current assets
2,898
2,856
Property and equipment, net
1,116
1,121
Goodwill
601
604
Other intangible assets, net
359
377
Operating lease right-of-use assets
254
268
Other assets
137
139
Total assets
$
5,365
$
5,363
Liabilities
Current liabilities:
Accounts payable
$
924
$
840
Notes payable
3
3
Accrued liabilities
718
852
Total current liabilities
1,645
1,695
Long-term debt
2,945
2,945
Noncurrent operating lease liabilities
245
258
Other liabilities
347
349
Total liabilities
5,183
5,247
Redeemable noncontrolling interest
—
18
Equity
182
98
Total liabilities and equity
$
5,365
$
5,363
As of June 30,
2024
2023
Other Financial Data
Working capital days
Receivable days
54
54
Inventory days
82
80
Payable days
71
70
Working capital
$
1,447
$
1,557
Working capital as a % of sales (LTM)
18.4
%
18.9
%
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 Six Months Ended June 30,
2024 and 2023
(dollars in millions)
Six Months Ended June
30,
2024
2023
Cash Flows From (For) Operating
Activities:
Cash provided by operating activities
$
648
$
632
Working capital changes
(395
)
(184
)
Net cash from operating activities
252
448
Cash Flows From (For) Financing
Activities:
Purchase of Company common stock
(290
)
(81
)
Cash dividends paid
(128
)
(129
)
Dividends paid to noncontrolling
interest
(12
)
(49
)
Purchase of redeemable noncontrolling
interest
(15
)
—
Proceeds from short-term borrowings
—
77
Payment of term loan
—
(200
)
Proceeds from the exercise of stock
options
75
23
Employee withholding taxes paid on
stock-based compensation
(33
)
(23
)
Decrease in debt, net
(1
)
(4
)
Net cash for financing activities
(404
)
(386
)
Cash Flows From (For) Investing
Activities:
Capital expenditures
(74
)
(133
)
Acquisition of business
(4
)
—
Other, net
(1
)
(4
)
Net cash for investing activities
(80
)
(137
)
Effect of exchange rate changes on cash
and cash investments
(5
)
3
Cash and Cash Investments:
Decrease for the period
(236
)
(72
)
At January 1
634
452
At June 30
$
398
$
380
As of June 30,
2024
2023
Liquidity
Cash and cash investments
$
398
$
380
Revolver availability
1,000
1,000
Total Liquidity
$
1,398
$
1,380
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Segment Data - Unaudited
For the Three and Six Months Ended
June 30, 2024 and 2023
(dollars in millions)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
Change
2024
2023
Change
Plumbing Products
Net sales
$
1,253
$
1,225
2
%
$
2,445
$
2,447
—
%
Operating profit, as reported
$
247
$
244
$
472
$
450
Operating margin, as reported
19.7
%
19.9
%
19.3
%
18.4
%
Rationalization charges (income)
2
1
5
(3
)
Operating profit, as adjusted
249
245
477
447
Operating margin, as adjusted
19.9
%
20.0
%
19.5
%
18.3
%
Depreciation and amortization
27
25
53
50
EBITDA, as adjusted
$
276
$
270
$
530
$
497
Decorative Architectural
Products
Net sales
$
838
$
902
(7
)%
$
1,572
$
1,659
(5
)%
Operating profit, as reported
$
174
$
180
$
299
$
312
Operating margin, as reported
20.8
%
20.0
%
19.0
%
18.8
%
Rationalization charges
—
—
1
1
Operating profit, as adjusted
174
180
299
313
Operating margin, as adjusted
20.8
%
20.0
%
19.0
%
18.9
%
Depreciation and amortization
9
9
19
17
EBITDA, as adjusted
$
184
$
189
$
318
$
330
Total
Net sales
$
2,091
$
2,127
(2
)%
$
4,017
$
4,106
(2
)%
Operating profit, as reported -
segment
$
421
$
424
$
771
$
762
General corporate expense, net
(24
)
(21
)
(55
)
(44
)
Operating profit, as reported
397
403
715
718
Operating margin, as reported
19.0
%
18.9
%
17.8
%
17.5
%
Rationalization charges (income) -
segment
2
1
6
(2
)
Operating profit, as adjusted
399
404
721
716
Operating margin, as adjusted
19.1
%
19.0
%
17.9
%
17.4
%
Depreciation and amortization -
segment
36
34
72
67
Depreciation and amortization - other
2
1
4
3
EBITDA, as adjusted
$
437
$
439
$
797
$
786
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 Six Months Ended June
30, 2024 and 2023
(dollars in millions)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
Change
2024
2023
Change
North American
Net sales
$
1,695
$
1,718
(1
)%
$
3,220
$
3,273
(2
)%
Operating profit, as reported
$
360
$
358
$
645
$
624
Operating margin, as reported
21.2
%
20.8
%
20.0
%
19.1
%
Rationalization charges (income)
1
1
4
(2
)
Operating profit, as adjusted
361
359
649
622
Operating margin, as adjusted
21.3
%
20.9
%
20.2
%
19.0
%
Depreciation and amortization
23
22
47
43
EBITDA, as adjusted
$
385
$
381
$
695
$
665
International
Net sales
$
397
$
409
(3
)%
$
797
$
833
(4
)%
Operating profit, as reported
$
61
$
66
$
126
$
138
Operating margin, as reported
15.4
%
16.1
%
15.8
%
16.6
%
Rationalization charges
1
—
2
—
Operating profit, as adjusted
62
66
128
138
Operating margin, as adjusted
15.6
%
16.1
%
16.1
%
16.6
%
Depreciation and amortization
13
12
25
24
EBITDA, as adjusted
$
75
$
78
$
153
$
162
Total
Net sales
$
2,091
$
2,127
(2
)%
$
4,017
$
4,106
(2
)%
Operating profit, as reported -
segment
$
421
$
424
$
771
$
762
General corporate expense, net
(24
)
(21
)
(55
)
(44
)
Operating profit, as reported
397
403
715
718
Operating margin, as reported
19.0
%
18.9
%
17.8
%
17.5
%
Rationalization charges (income) -
segment
2
1
6
(2
)
Operating profit, as adjusted
399
404
721
716
Operating margin, as adjusted
19.1
%
19.0
%
17.9
%
17.4
%
Depreciation and amortization -
segment
36
34
72
67
Depreciation and amortization - other
2
1
4
3
EBITDA, as adjusted
$
437
$
439
$
797
$
786
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/20240725328908/en/
Investor Contact Robin
Zondervan Vice President, Investor Relations and FP&A
313.792.5500 robin_zondervan@mascohq.com
Masco (NYSE:MAS)
過去 株価チャート
から 6 2024 まで 7 2024
Masco (NYSE:MAS)
過去 株価チャート
から 7 2023 まで 7 2024
