Masco Corporation Reports Third Quarter 2008 Results
28 10월 2008 - 8:00PM
PR Newswire (US)
Third Quarter 2008 TAYLOR, Mich., Oct. 28 /PRNewswire-FirstCall/ --
Masco Corporation (NYSE: MAS) today reported that net sales from
continuing operations for the quarter ended September 30, 2008
declined 16 percent to $2.5 billion compared with $3.0 billion for
the third quarter of 2007. North American sales declined 18 percent
and International sales declined six percent. In local currencies,
International sales declined 11 percent compared with the third
quarter of 2007. Income from continuing operations was $36 million
or $.10 per common share and $206 million or $.56 per common share
in the third quarters of 2008 and 2007, respectively. The third
quarter of 2008 results were adversely affected by significantly
lower sales volume to the new home construction market and a
continued decline in consumer spending for home improvement
products. The Company continues to focus on the rationalization of
its businesses, including sourcing programs, business
consolidations, plant closures, headcount reductions and other
initiatives. During the third quarters of 2008 and 2007, the
Company incurred costs and charges of $16 million pre-tax ($.03 per
common share, after tax) and $12 million pre-tax ($.02 per common
share, after tax), respectively, related to these initiatives.
Since late 2006, the Company has aggressively reduced its cost
structure including closing 14 manufacturing facilities, reducing
headcount by 20,000 (which includes an approximate 33 percent of
its North American workforce) and reducing installation branches by
over 25 percent. The third quarter of 2008 was also impacted by a
higher tax rate which reduced earnings by $.13 per common share
compared with the third quarter of 2007. As previously disclosed,
in the first quarter of 2008, the Company determined that several
European business units were not core to the Company's long-term
growth strategy and, accordingly, embarked on a plan of disposition
which was completed in the third quarter of 2008. Proceeds of $174
million (including $28 million in the third quarter) were generated
through the disposition of these business units. Business
conditions remain difficult in the Company's markets, as the
Company experienced a further significant reduction in sales of its
products and services late in the third quarter of 2008, which has
continued into October. The Company continues to estimate that 2008
housing starts will decline to a range of 900,000 to 1,000,000
units, compared to 1.3 million units in 2007. In the first nine
months of 2008, housing starts declined 31 percent from 2007.
However, the Company anticipates that consumer spending for home
improvement products and demand for certain of the Company's
International products will continue to decline more than
previously anticipated in the near term. While the unprecedented
changes in the global economic and financial market environment
make forecasting future business conditions extremely difficult,
the Company currently estimates that its fourth quarter sales will
decline approximately 20 percent compared to 2007. As a result, the
Company currently estimates that its full-year 2008 sales will
decline by mid-teens compared to 2007. The Company's previous
guidance estimated that its full- year 2008 percentage sales
decline would be low-double digits to mid-teens. The Company
currently estimates that its 2008 full-year earnings will be in a
range of $.25 to $.30 per common share, reflecting the additional
sales decline. The guidance also includes approximately $22 million
pretax ($.04 per common share, after tax) of additional costs and
charges for plans undertaken to further rationalize the Company's
business, but does not include any additional costs and charges
that may result from the continued evaluation of the Company's
businesses or any other charges. The Company's previous earnings
guidance was a range of $.50 to $.65 per common share for the full-
year 2008. The Company continues to estimate that 2008 free cash
flow (cash from operations, after capital expenditures and before
dividends) will be relatively strong and approximate $600 million.
The Company's guidance also reflects increasingly competitive
market conditions for its services and products and higher costs
for freight and logistics and for certain materials, including
commodities impacted by energy costs. The Company's guidance
includes the Company's estimate that its full-year tax rate will
approximate 56 to 57 percent (due to the U.S. tax on the
anticipated repatriation of low-taxed foreign earnings to utilize
the Company's foreign tax credit carryforward) which, compared to
the Company's normalized tax rate of approximately 36 percent, will
reduce earnings by approximately $.18 per common share. The
Company's guidance includes impairment charges for financial
investments and currency losses incurred in the first nine months
of 2008 which, together with the expected increase in the tax rate,
decrease full-year estimated earnings by approximately $.27 per
common share. Although the Company expects market conditions in its
industry, over the next several quarters, to be very challenging,
the Company is confident that the long-term fundamentals for the
new home construction and home improvement products markets are
positive. The Company believes that its strong financial position
(including cash of over $1 billion at September 30, 2008, modest
debt maturities until 2012, unused bank lines and its ability to
generate strong cash flow) together with its current strategy of
investing in leadership brands, innovative growth and flexible and
scalable supply chains, along with a strong focus on cash flow to
fund our dividend, will allow us to drive long- term growth and
incremental leverage for our shareholders. Headquartered in Taylor,
Michigan, Masco Corporation 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 Company is providing an
Earnings Presentation, in a PDF format, on its Web site by 9:00
a.m. ET, October 28, 2008, that can be viewed as part of the
conference call. Please refer to the Earnings Presentation for
additional Business Highlights. A conference call regarding items
contained in this release is scheduled for Tuesday, October 28,
2008 at 11:00 a.m. ET. Participants in the call are asked to
register five to ten minutes prior to the scheduled start time by
dialing (719) 325-2433 (confirmation #7942632). The conference call
will be webcast simultaneously on the Company's Web site at
http://www.masco.com/ and supplemental material, including the
financial data referred to on the call and a reconciliation of
non-GAAP information provided on the call, will also be available
on the Web site. A replay of the call will be available on Masco's
Web site or by phone by dialing (719) 457-0820 (replay access code
#7942632) approximately two hours after the end of the call and
will continue through November 4, 2008. Masco Corporation's press
releases and other information are available through the Company's
toll free number, 1-888-MAS-NEWS, or under the Investor Relations
section of Masco's Web site at http://www.masco.com/. Statements
contained herein, or otherwise made available, that reflect the
Company's views about its future performance may constitute
"forward-looking statements" under the Private Securities
Litigation Reform Act of 1995. These views involve risks and
uncertainties that are difficult to predict and the Company's
results may differ materially from the results discussed in such
forward-looking statements. For further information, refer to our
most recent Annual Report on Form 10-K (particularly the "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" sections) and to any
subsequent Quarterly Reports on Form 10-Q, all of which are on file
with the Securities and Exchange Commission. The Company undertakes
no obligation to update any forward-looking statements, whether as
a result of new information, future events or otherwise. Certain of
the financial and statistical data made available are non-GAAP
financial measures as defined by the SEC's Regulation G. The
Company believes that such non-GAAP performance measures and ratios
used in managing the business may provide users with meaningful
comparisons between current results and results in prior periods.
Non-GAAP performance measures and ratios should be viewed in
addition to, and not as an alternative for, the Company's reported
results under accounting principles generally accepted in the
United States. Additional information about the Company is
contained in the Company's filings with the SEC and is available on
Masco's Web site. MASCO CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED For the Three Months and Nine
Months Ended September 30, 2008 and 2007 (In Millions Except Per
Common Share Data) Three Months Ended Nine Months Ended September
30 September 30 2008 2007 2008 2007 Net sales $2,528 $3,005 $7,621
$8,897 Cost of sales 1,880 2,155 5,643 6,420 Gross profit 648 850
1,978 2,477 Selling, general and administrative expenses 452 479
1,413 1,493 Operating profit 196 371 565 984 Other income
(expense), net (57) (45) (197) (130) Income from continuing
operations before income taxes and minority interest 139 326 368
854 Income taxes 92 109 207 302 Income from continuing operations
before minority interest 47 217 161 552 Minority interest 11 11 35
27 Income from continuing operations 36 206 126 525 (Loss) income
from discontinued operations, net (3) (1) (9) 12 Net income $33
$205 $117 $537 Earnings per common share (diluted): Income from
continuing operations $0.10 $0.56 $0.36 $1.40 (Loss) income from
discontinued operations, net (0.01) - (0.03) 0.03 Net income $0.09
$0.56 $0.33 $1.43 Average diluted common shares outstanding 352 367
354 376 DATASOURCE: Masco Corporation CONTACT: Media: Sharon
Rothwell, Vice President - Corporate Affairs, +1-313-792-6028, ;
Investors: Maria Duey, Vice President - Investor Relations,
+1-313-792-5500, Web site: http://www.masco.com/ Company News
On-Call: http://www.prnewswire.com/comp/535350.html
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