TAYLOR, MI - Kitchen cabinetry manufacturer Masco finally regained profitability in its North American cabinet business in the first quarter of 2013, it announced today.
Overall Masco sales rose 4 percent to $1.9 billion, with net income of $47 million, up 42 percent from a year ago.
Masco's cabinetry division worldwide moved to break even, as sales rose 4 percent to $236 million. North American cabinetry moved into the black, according to CEO Tim Wadhams, with a 5 percent sales gain over 2012. Masco's gains were driven by North American sales, which increased 6 percent - a result of the improvement in the U.S. housing market.
"Our Cabinet segment is heading in the right direction," said Wadhams. "We continue to believe that new home construction will show strong growth in 2013."
Wadhams said Eurozone financial woes remain a concern, but "reducing our cost structure and paying down debt, will continue to strengthen our business for the future,” said Wadhams.
Masco last quarter found cabinetry a challenging segment as sales declined 5 percent worldwide. European sales fell a steep 12 percent. Already announced plant closures and headcount reductions will yield $20 million in improved operating results in 2013, Masco said last quarter.
Masco's cabinetry brands include Merillat, Kraftmaid and Quality Cabinets.
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