TAYLOR, MI - Masco Corp., parent of Merillat Cabinets, Delta faucets and Liberty hardware, among other brands (NYSE: MAS), said its cabinetry sales fell 3 percent during the fourth quarter of 2014, even as overall sales rose 3 percent, led by gains in its Delta plumbing and decorative architectural hardware.
An ERP implementation created challenges in the cabinetry segment, Masco says.
Overall, Masco's net sales from continuing operations increased 3 percent to $2.1 billion. North American sales increased 4 percent and international sales decreased 2 percent in U.S. dollars, but increased 6 percent in local currency. For the year, net sales increased 4 percent to $8.5 billion, compared to 201.
Plumbing Products’ net sales increased 1 percent (5 percent excluding the impact of currency translation); Decorative Architectural Products’ net sales increased 7 percent, driven by new products and program wins across the businesses; Cabinets and Related Products’ net sales decreased 3 percent due to challenges in retail and dealer channels. And Installation and Other Services’ net sales increased 7 percent with continued growth in custom homes and the commercial channel. Other Specialty Products’ net sales increased 8 percent, fueled by growth in repair and remodeling
"While our Cabinet and Related Products segment faced lingering demand challenges from an ERP implementation, we believe we are taking the necessary actions to position it for profitability in 2015,” said Masco CEO, Keith Allman. “Our Installation and Other Services segment capitalized on the housing recovery and ongoing growth of its commercial business."
In September, Masco announced the spin-off of its Services Business and says it will be completed by mid-year 2015. A restructuring of its corporate office is expected to yield annual savings of up to $40 million.
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