Masco profits surge in Q1
Home improvement and building products manufacturer Masco reported first quarter net sales increased 4% to $1.6 billion from sales of $1.51 billion in the first quarter last year.
The Linova, Mich.-based company also posted a surge in profits with a first quarter net income of $530 million compared to a net income of $116 million in the corresponding quarter a year ago. This includes $397 million in income from discontinued operations.
Plumbing product sales increased 2% during the quarter while sales of decorative architectural products grew 9%, driven by strong sales of paint and other coatings products.
Masco said that it implementing a hiring and wage freeze, delaying non-critical capital expenditures, and temporarily suspending its share repurchase activity. The company repurchased 14.2 million shares in the first quarter.
Masco’s portfolio of brands includes Behr paint; Delta and Hansgrohe faucets, bath and shower fixtures; Kichler decorative and outdoor lighting; and HotSpring spas.
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The Bottom Line: Sales rise 4% as profits jump to $530 million in Q1.
What the CEO said: "We delivered strong top and bottom-line growth and expanded margins in the quarter while managing through the initial challenges we faced in addressing the COVID-19 pandemic," said Masco President and CEO, Keith Allman. "I am extremely proud of how our people have responded and adapted to this rapidly changing environment.
“The entire organization has united to protect the safety of our employees and support our customers and communities, while still successfully running the business. Our focus remains on the health and safety of our employees, maintaining business operations, and executing on our plans to ensure continued long-term success for Masco."
Looking ahead, Allman said that demand for Masco products “will be solid as we recover from the pandemic.”
“We believe our work over the past few years to improve our portfolio and strengthen our balance sheet has positioned Masco very well to weather this storm and create long-term shareholder value,” he said.
Company info: Masco’s full first quarter 2020 financial report is available here.
The Linova, Mich.-based company also posted a surge in profits with a first quarter net income of $530 million compared to a net income of $116 million in the corresponding quarter a year ago. This includes $397 million in income from discontinued operations.
Plumbing product sales increased 2% during the quarter while sales of decorative architectural products grew 9%, driven by strong sales of paint and other coatings products.
Masco said that it implementing a hiring and wage freeze, delaying non-critical capital expenditures, and temporarily suspending its share repurchase activity. The company repurchased 14.2 million shares in the first quarter.
Masco’s portfolio of brands includes Behr paint; Delta and Hansgrohe faucets, bath and shower fixtures; Kichler decorative and outdoor lighting; and HotSpring spas.
###
The Bottom Line: Sales rise 4% as profits jump to $530 million in Q1.
What the CEO said: "We delivered strong top and bottom-line growth and expanded margins in the quarter while managing through the initial challenges we faced in addressing the COVID-19 pandemic," said Masco President and CEO, Keith Allman. "I am extremely proud of how our people have responded and adapted to this rapidly changing environment.
“The entire organization has united to protect the safety of our employees and support our customers and communities, while still successfully running the business. Our focus remains on the health and safety of our employees, maintaining business operations, and executing on our plans to ensure continued long-term success for Masco."
Looking ahead, Allman said that demand for Masco products “will be solid as we recover from the pandemic.”
“We believe our work over the past few years to improve our portfolio and strengthen our balance sheet has positioned Masco very well to weather this storm and create long-term shareholder value,” he said.
Company info: Masco’s full first quarter 2020 financial report is available here.