Masco income down in Q2
Home improvement products company Masco, parent of Delta Faucet and Behr paint, had lower sales and earnings in the second quarter, tied to lower North American housing starts, but expressed optimism on rising international sales and recent acquisitions.
The company had income from continuing operations of $186 million, down 13.5 percent from $215 million in last year’s second quarter.
The company saw sales fall 6 percent on a lower sales volume of installation and other services, as well as assembled cabinets, windows and doors for the new home construction market. Sales were $3.1 billion compared with $3.4 billion last year.
North American sales declined 10 percent while international sales increased 14 percent, the company noted. The North American market was hampered by less consumer interest in “big ticket” home improvement items, “as well as a less favorable product mix and increased commodity cost.”
“Results were aided by recent acquisitions, increased sales volume of paints and stains and international operations, particularly plumbing products,” the company said in a statement.
During the quarter, Masco acquired wall panel and millwork provider Erickson Construction Co. and Guy Evans Inc., an installer of millwork, doors, windows and bath hardware.
The company said its results were better than expected and expressed optimism about the second half of the fiscal year.
“The company believes that the negative impact [of lower housing starts] will be largely offset by a combination of the stronger-than-expected first half results, the continued favorable effect of currency translation, share repurchases, recent acquisitions, selling price increases, market share gains and the profit improvement programs it is pursuing,” Masco said.
Based in Taylor, Mich., Masco is one of the world’s largest manufacturers of home improvement products, including Home Depot’s Behr paint brand, Delta Faucet, KraftMaid cabinets, PowerShot tools and Milgard windows.
Sears names new chief marketing officer
Sears Holdings has announced Richard Gerstein will join the company as chief marketing officer for its Sears, Roebuck and Co. subsidiary effective Aug. 6.
Gerstein last served as global chief marketing officer and senior vp of U.S. business for Alberto Culver Beauty.
Gerstein will have overall responsibilities for executing Sears’ brand marketing strategies and programs. He will help with initiatives that aim to “help Sears reconnect with its loyal customers and attract former customers back to Sears,” said Maureen McGuire, Sears Holdings’ chief marketing officer, adding, “We started that work with the announcement in May of Sears’ new integrated marketing campaign.”
Gerstein also served in senior leadership and marketing positions at Reflect True Custom Beauty, a Procter & Gamble spinoff, and at Procter & Gamble.
Board member steps down at Valspar
Minneapolis-based paint and coatings company Valspar announced Peter McCausland resigned from its board of directors, citing an increase in his business and personal commitments.
McCausland was a member of the board’s compensation and governance committees.
McCausland is chairman of the board and CEO of Airgas and a director of the International Oxygen Manufacturers Association, the Fox Chase Cancer Center and the Independence Seaport Museum. He had been a Valspar director since April 2006.