Masco Corporation Reports First Quarter 2021 Results

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

Highlights

–Sales increased 25 percent to $1,970 million; in local currency, sales increased 22 percent

–Operating profit increased 62 percent to $365 million; adjusted operating profit increased 61 percent to $366 million

–Operating margin increased 430 basis points to 18.5 percent; adjusted operating margin increased 420 basis points to 18.6 percent

–Earnings per share from continuing operations decreased 29 percent to $0.34 per share; adjusted earnings per share from continuing operations increased 89 percent to $0.89 per share
Repurchased 5.5 million shares for $303 million

–Anticipate 2021 earnings per share in the range of $1.52 – $1.72, and on an adjusted basis, in the range of $3.50 – $3.70, an increase from previously announced expectation of $3.25 – $3.45.

“We achieved another outstanding quarter,” said Masco President and CEO, Keith Allman. “We capitalized on the continued strong demand for our products to deliver exceptional sales growth, margin expansion and an 89 percent increase in adjusted earnings per share. We also continued our capital deployment of our strong free cash flow by returning $339 million to shareholders through dividends and share repurchases during the quarter. Finally, we further strengthened our balance sheet and reduced interest expense through the successful refinancing of our 2022, 2025 and 2026 debt maturities.”

2021 First Quarter Commentary

On a reported basis, compared to first quarter 2020:

–Net sales increased 25 percent to $1,970 million; in local currency and excluding acquisitions, net sales increased 19 percent

–In local currency, North American sales increased 21 percent and international sales increased 27 percent

–Gross margins increased 90 basis points to 35.5 percent from 34.6 percent

–Operating profit increased 62 percent to $365 million

–Operating margins increased 430 basis points to 18.5 percent from 14.2 percent

–Income from continuing operations decreased to $0.34 per share, compared to $0.48 per share

Compared to first 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 increased 80 basis points to 35.6 percent compared to 34.8 percent

–Operating profit increased 61 percent to $366 million from $228 million

–Operating margins increased 420 basis points to 18.6 percent compared to 14.4 percent

–Income from continuing operations increased to $0.89 per share, compared to $0.47 per share

Liquidity at the end of the first quarter was $1,838 million (including availability under our revolving credit facility)

Plumbing Products’ net sales increased 31 percent; in local currency and excluding acquisitions, sales increased 22 percent

Decorative Architectural Products’ net sales increased 15 percent; in local currency and excluding acquisitions, sales increased 13 percent

“Masco is off to a strong start in 2021,” said Allman. “Our markets remain strong, and we continue to demonstrate our ability to execute extremely well in this dynamic environment. We have taken actions and developed further plans to offset the raw material and logistics inflation that we are experiencing. While we anticipate these challenges will continue for the next few quarters, we believe we are well prepared and will continue to adjust to deliver value for our customers and our shareholders. Based on our strong performance in the first quarter and continued strength in our markets, we now anticipate our earnings per share for 2021 to be in the range of $3.50 to $3.70 per share, increased from our previous expectation of $3.25 to $3.45 per share,” concluded Allman.

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