Masco beats expectations in Q2
Masco Corporation posted modest sales growth in the second quarter, though the company stock rose more than 11% at press time on exceeded expectations.
“Continued growth momentum, solid execution, and the timing of paint promotions enabled us to achieve earnings above our expectations for the quarter,” said Masco’s president and CEO Keith Allman. “Importantly, our Cabinets and Related Products segment accelerated the pace of its turnaround, resulting in better than expected top and bottom line results for that segment. In addition to our strong sales and profit growth, we returned nearly $270 million to shareholders through dividends and share repurchases in the first half of 2015.”
Sales for the quarter were up 3% to $1.9 billion, or 7% excluding the effects of foreign currency translation.
Regionally, sales performed better: an increase of 7% in North America, as well as 5% in International sales in local currency. In U.S. dollars, International sales decreased 10%.
Net income came in at $105 million, down from the previous year's $139 million.
However, a 14.5% adjusted operating profit margin — a 22% increase — came from strong performance from all segments.
Additionally, the tax-free spin-off of TopBuild Corp. was completed on June 30, with Masco receiving a $200 million cash distribution.
The company's board of directors also increased the annual dividend by $0.02 per share to $0.38 beginning with the quarterly dividend to be paid in the fourth quarter of 2015.
“Masco has delivered a strong first half of the year and we are proud of our focus and execution,” said Allman. “With the completion of the spin-off of TopBuild Corp., we begin a new chapter in Masco’s history focused on driving shareholder value through our portfolio of industry-leading branded building products, operational excellence and disciplined capital allocation. Our Cabinetry business has returned to profitability and we expect the momentum it has built over the first half of the year to continue. For the balance of 2015, we believe the underlying demand for our market-leading products will increase and that the repair and remodeling environment will continue to improve."
Valspar sinks a putt for Habitat
Valspar is setting up shop at the 3M Championship this July 31 through Aug. 2 with a golfing fundraiser benefiting Habitat for Humanity.
"Valspar's Putt for Habitat Challenge" will offer a chance for Twin Cities Habitat for Humanity to receive up to $15,000 of additional support from Valspar.
Every putt will trigger an additional $5 donation from the Valspar Foundation.
"Valspar has been a tremendous partner in helping us give families a brighter future," said Susan Haigh, president and CEO, Twin Cities Habitat for Humanity. "We are so thankful for all they do to contribute to our work at Habitat and to our communities. They help us carry on our critical mission to eliminate poverty housing in the Twin Cities."
Valspar initiated a new five-year pledge to Habitat in March, worth $36 million in paint and funding.
"Valspar is proud to partner with Habitat to provide families with decent, safe and affordable housing, and help transform lives and communities," said Gary E. Hendrickson, Valspar chairman and CEO. "Our volunteers, donated paint and financial support have made a difference for many families over the years, and we're looking forward to continuing our partnership with Habitat well into the future."
The Putt for Habitat Challenge will be located in the interactive "Family Fun Zone" located behind the 18th green of the Tournament Players Club in Blaine, Minnesota.
LP expands in the Middle East
LP Building Products is moving into the Middle East's Gulf Cooperation Council (G.C.C.) region.
Beyond expanding the company's footprint, the move will make LP SolidStart Laminated Strand Lumber (LSL) stile and rail door stabilizers available to wholesalers, remanufacturers and door producers in the Middle East. In particular, the G.C.C. region is a large and quickly growing construction market.
“With the expansion into this new market we will be able to provide SolidStart LSL in six new countries, allowing us to form new relationships in the Middle East,” said Al Huber, international sales manager for LP Building Products. “We are eager to fulfill the high demand in a vastly growing region.”
LP SolidStart LSL answers the demand for a fire-rated technical door that's also an affordable alternative to hardwood timber.
SolidStart also features dimensional stability and screw-holding and split-resistant characteristics, as well as both PEFC and SFI full CoC (Chain of Custody) forest certification.