TAYLOR, MI - Masco Corp. today reported that net sales for the third quarter ended Sept. 30, 2011 increased three percent to $2.0 billion compared to the third quarter of 2010. North American sales were flat and International sales increased 12 percent. In local currencies, International sales increased four percent compared with the third quarter of 2010.

Income was $.08 per common share and $.11 per common share for the third quarters of 2011 and 2010, respectively, excluding the items in Exhibit A and with a normalized tax rate of 36 percent. As reported, income (loss) was $.10 per common share and $(.02) per common share for the third quarters ended September 30, 2011 and 2010, respectively.

Income for the three months ended Sept. 30, 2011 included $19 million of pre-tax gains ($.03 per common share, after tax) related to distributions from private equity funds. Income for the three months ended September 30, 2010 included $3 million of pre-tax losses ($.01 per common share, after tax) related to the sale of financial investments.

Income also included the impact of mark-to-market changes on certain metal commodity hedges aggregating $10 million of pre-tax losses ($.02 per common share, after tax) and $4 million of pre-tax gains ($.01 per common share, after tax), for the three month periods ended September 30, 2011 and 2010, respectively.

"Our sales increased three percent compared to third quarter 2010, reflecting strong sales of plumbing-related products driven by share gains of our Hansgrohe and Delta brands, share gains in our Installation segment and foreign currency translation. The third quarter of 2011 was negatively impacted by continued depressed conditions in new home construction and by the deferral of "big ticket" repair and remodel activity," said Masco's President and CEO Tim Wadhams.

"We have continued to take aggressive steps to address these challenging market dynamics and further reduce our cost structure. In October, we closed multiple facilities and reduced headcount in those businesses most affected by these economic conditions. In addition, we identified four businesses within the Installation and Other Services segment for divestiture. These businesses were focused on noncore diversified products which include framing, commercial drywall installation, and millwork."

We continue to focus on the rationalization of our businesses, including business consolidations, plant closures, headcount reductions, system implementations and other initiatives. During the third quarters of 2011 and 2010, we incurred costs and charges of $13 million pre-tax ($.02 per common share, after tax) and $39 million pre-tax ($.07 per common share, after tax), respectively, related to these initiatives.

Outlook 2011: "The foreclosure process, credit availability, declining home values, and consumer confidence continue to dampen the U.S. economy and hinder any housing recovery. We continue to believe that housing start levels in 2011 will be flat with 2010. Longer-term, however, we are confident about the fundamentals for the new home construction and home improvement markets and we are optimistic about the future," said Tim Wadhams. "We continue to focus on the things we can control, including managing our cost structure and business portfolio, and launching exciting new programs in paint, plumbing, cabinets and builder hardware. In addition, we are funding global initiatives in our paint and plumbing businesses. We expect that improvements in our markets and in consumer spending, together with the changes we are driving across Masco and our financial strength, will create significant value for our shareholders in the future."

Headquartered in Taylor, MI, Masco Corp. is one of the world's leading manufacturers of home improvement and building products, as well as a leading provider of services that include the installation of insulation and other building products.

The 2011 third quarter supplemental material, including a presentation in PDF format, will be distributed after the market closes on October 24, 2011 and will be available on the Company's Web site at Masco.com.

Source: Masco Corporation

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