Masco could part ways with cabinets and windows

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Masco could part ways with cabinets and windows

Masco revealed on Friday morning that it plans to explore “strategic alternatives” to its cabinetry and window businesses.

A review of the businesses is being conducted as Masco, essentially, figures out whether or not it’s still worth producing and carrying these lines.

The move is designed to drive greater shareholder value, according to Masco President and CEO Keith Allman. The review is expected to be completed by June.

The Moline, Ill.-based company’s cabinetry and window brands include Masco cabinetry in Ann Arbor, Mich.; Kraftmaid and Cardell, sold to dealers and home center retailers; and Merillat and Quality sold to dealer and home builders.

For 2018, Masco reported net sales $950 million for its Cabinetry Products segment of $950 million, along with an operating profit of $86 million and EBITDA of $99 million.

“Over the past five years, we have been executing our strategy to drive the full potential of our core businesses, leverage opportunities across our organization, and actively manage our portfolio to drive shareholder value,” Allman said. “Our cabinetry and window businesses are leaders in their respective markets and are well positioned to continue their growth.”

Masco’s window businesses include Milgard Windows and Doors, headquartered in Tacoma, Wa., and UK Window Group, headquartered in Wales in the United Kingdom.

Milgard manufactures and sells vinyl, fiberglass and aluminum windows and patio doors under the Milgard brand name for home improvement and new home construction, principally in the western United States. The UK Window Group manufactures and sells vinyl windows, composite doors, related products and components under several brand names, including Duraflex, Griffin, Premier, Phoenix Doors, and Evolution.

Masco posted net sales of its Windows and Other Specialty Products segment of $755 million, operating profit of $34 million and adjusted EBITDA of $62 million.

Masco’s combined portfolio of home improvement brands is wide and diverse. The company also owns Behr paint; Delta and Hansgrohe faucets, bath and shower fixtures; Kichler decorative and outdoor lighting; and HotSpring spas.

Last month the company reported net sales for the fourth quarter 2018 increased 11% to $2 billion from net sales of $1.85 billion in the fourth quarter 2017.

For the full year, Masco net sales rose more than 9% to $8.36 billion from 2017 net sales of $7.64 billion.

But cabinetry products sales increased just 1% in the fourth quarter of 2018 while windows and other specialty products’ sales fell 1%.