Las Vegas, NV - Masco CFO John Snzewajs spoke at the RBC Capital Markets Global Industrials Conference today, September 10th. Masco, the maker of KraftMaid, Merillat and QualityCabinets, as well as DeNova countertops, is proud of the progress it has seen in turning around its cabinets business. Masco saw cabinetry sales decline in the last quarter of 2014 on implementation of an Enterprise Resource Planning computer system. 

If current trends continue the company expects to hit its target of $25 million in operating profit from the cabinets segment in 2015. Snzewajs noted that consumers are looking to reinvest in their homes. A full 80% of homes are at least 20 years old, so the company believes there is great opportunity for home improvement business.

Masco Chief Financial Officer John Sznewajs

The cabinets business has gone from a loss last year to a slight gain this year. Masco attributes that gain to three factors. The company threw a lot of labor into improving delivery times and now it is stripping out those costs for labor, especially IT, dropping more to the bottom line. The top line is growing due to a stronger market in new construction, and its Repair and Remodel business has been better than expected.

Like Home Depot, Masco is also trying to grow its Pro business. The home improvement and building products maker has added about 125 sales representatives to go after the professional contractor category this year.

 

 

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