TAYLOR, MI - Masco’s cabinetry and related products segment posted third quarter revenues of $291 million, a drop of 5% compared to the same period last year.
The company said the improved pace of new home construction in North America and strong sales through big builders were offset by soft dealer and big box retail sales and a weak European market. Masco brands represented in this segment include: KraftMaid Cabinetry, Merillat, Quality Cabinets, Moores, DeNova Countertops and Tvilum.
Overall Masco Corp.’s net sales of $2 billion, posted for the third quarter ended Sept. 30, were flat compared to the third quarter of 2011. The company reported North American sales increased 4 % and international sales decreased 12 %.
"We are encouraged by the continued strength in new home construction activity," Masco's CEO, Tim Wadhams said in announcing the earnings. "In our Cabinet segment, we announced actions during the quarter, including the closure of a [DeNova countertop] manufacturing location and a headcount reduction, which we expect will improve our efficiency and reduce costs by approximately $20 million on an annual basis.
"While we are committed to returning our Cabinet segment to profitability, we anticipate that big ticket remodeling will remain weak, even though we continue to see modest improvement in overall repair and remodeling activity."
Earlier this year Masco made changes to its North American Cabinet business, including the appointment of Rick Roetken as president of the North American Cabinet Group. Group President Keith Allman now also heads the cabinet group as well as the plumbing group, which he has led since late 2011.
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