Masco 3Q sales up 1%

TAYLOR, Mich. (PR) — Masco said net sales from continuing operations for the third quarter rose 1% to $3.3 billion.


North American net sales decreased 1% and International net sales increased 10%. In local currencies, International net sales increased 5% compared with the third quarter of 2016.
Income from continuing operations, excluding the non-cash impairment charge for financial investments and costs and charges related to profit improvement programs in the third quarters of 2016 and 2016, was $236 million or $.60 per common share and $290 million or $.68 per common share, respectively. The third quarters of 2016 and 2016 benefited from net gains from the sale of financial investments of $.01 and $.04 per common share, respectively.
Income from continuing operations for the third quarter of 2016 was $225 million or $.57 per common share, including an $8 million non-cash, pre-tax impairment charge for financial investments and $9 million pre-tax of costs and charges related to profit improvement programs. Income from continuing operations for the third quarter of 2016 was $254 million or $.59 per common share, including a $43 million non-cash, pre-tax impairment charge for financial investments and $12 million pre-tax of costs and charges related to profit improvement programs.
Net income for the third quarter of 2016 was $252 million or $.64 per common share and included a $50 million pre-tax net gain ($.07 per common share, after tax) from discontinued operations. Net income for the third quarter of 2016 was $262 million or $.61 per common share and included $8 million of after-tax income ($.02 per common share) from discontinued operations.
In September 2016, the company completed the sale of Computerized Security Systems (CSS). CSS supplies electronic locksets primarily to hospitality markets in the United States and had annual sales of $73 million. This disposition was completed pursuant to the company’s determination that this business unit was not core to the company’s long-term strategy. Under generally accepted accounting principles, the net gain on this transaction, along with 2016 year-to-date and prior-period operating results, are reflected in discontinued operations. Total net proceeds from the sale were $91 million; the Company recognized a $51 million pre-tax net gain (included in discontinued operations) on the disposition of CSS.
As part of its profit improvement programs, the company announced a plant closure in the Plumbing Products segment in January 2016. In the third quarter of 2016, the company incurred $9 million pre-tax ($52 million year-to- date) of costs and charges related to this plant closure and other profit improvement programs in the Plumbing Products and the Cabinets and Related Products segments. The company expects to incur additional costs and charges during the fourth quarter of 2016 for its profit improvement programs and currently anticipates that total costs and charges related to these programs for the full-year 2016 will aggregate approximately $70 million pre- tax, as previously announced. Implementing these programs should improve the company’s earnings outlook for 2017 and beyond.
The company’s results continued to be adversely affected by accelerating declines in housing activity, a moderation in consumer spending and increased commodity costs, partially offset by profit improvement programs and selling price increases. The company has implemented additional selling price increases in an effort to at least partially offset commodity cost increases.
A softening of incoming orders for building products and services along with a forecasted deeper-than-expected decline in year-over-year single family housing starts for the last several months of 2016 are expected to result in the company’s fourth quarter net sales being down mid-single digits compared with the fourth quarter of 2016. Accordingly, full-year earnings from continuing operations, excluding costs and charges related to profit improvement programs, impairment charges for investments and any other items, may be closer to $2.20 per common share rather than the company’s most recent guidance of $2.25 to $2.30 per common share. Including such charges, earnings from continuing operations may be closer to $1.95 per common share for the full-year 2016.International sales rise 10%
TAYLOR, Mich. (PR) — Masco said net sales from continuing operations for the third quarter rose 1% to $3.3 billion.
North American net sales decreased 1% and International net sales increased 10%. In local currencies, International net sales increased 5% compared with the third quarter of 2016.
Income from continuing operations, excluding the non-cash impairment charge for financial investments and costs and charges related to profit improvement programs in the third quarters of 2016 and 2016, was $236 million or $.60 per common share and $290 million or $.68 per common share, respectively. The third quarters of 2016 and 2016 benefited from net gains from the sale of financial investments of $.01 and $.04 per common share, respectively.
Income from continuing operations for the third quarter of 2016 was $225 million or $.57 per common share, including an $8 million non-cash, pre-tax impairment charge for financial investments and $9 million pre-tax of costs and charges related to profit improvement programs. Income from continuing operations for the third quarter of 2016 was $254 million or $.59 per common share, including a $43 million non-cash, pre-tax impairment charge for financial investments and $12 million pre-tax of costs and charges related to profit improvement programs.
Net income for the third quarter of 2016 was $252 million or $.64 per common share and included a $50 million pre-tax net gain ($.07 per common share, after tax) from discontinued operations. Net income for the third quarter of 2016 was $262 million or $.61 per common share and included $8 million of after-tax income ($.02 per common share) from discontinued operations.
In September 2016, the company completed the sale of Computerized Security Systems (CSS). CSS supplies electronic locksets primarily to hospitality markets in the United States and had annual sales of $73 million. This disposition was completed pursuant to the company’s determination that this business unit was not core to the company’s long-term strategy. Under generally accepted accounting principles, the net gain on this transaction, along with 2016 year-to-date and prior-period operating results, are reflected in discontinued operations. Total net proceeds from the sale were $91 million; the Company recognized a $51 million pre-tax net gain (included in discontinued operations) on the disposition of CSS.
As part of its profit improvement programs, the company announced a plant closure in the Plumbing Products segment in January 2016. In the third quarter of 2016, the company incurred $9 million pre-tax ($52 million year-to- date) of costs and charges related to this plant closure and other profit improvement programs in the Plumbing Products and the Cabinets and Related Products segments. The company expects to incur additional costs and charges during the fourth quarter of 2016 for its profit improvement programs and currently anticipates that total costs and charges related to these programs for the full-year 2016 will aggregate approximately $70 million pre- tax, as previously announced. Implementing these programs should improve the company’s earnings outlook for 2017 and beyond.
The company’s results continued to be adversely affected by accelerating declines in housing activity, a moderation in consumer spending and increased commodity costs, partially offset by profit improvement programs and selling price increases. The company has implemented additional selling price increases in an effort to at least partially offset commodity cost increases.
A softening of incoming orders for building products and services along with a forecasted deeper-than-expected decline in year-over-year single family housing starts for the last several months of 2016 are expected to result in the company’s fourth quarter net sales being down mid-single digits compared with the fourth quarter of 2016. Accordingly, full-year earnings from continuing operations, excluding costs and charges related to profit improvement programs, impairment charges for investments and any other items, may be closer to $2.20 per common share rather than the company’s most recent guidance of $2.25 to $2.30 per common share. Including such charges, earnings from continuing operations may be closer to $1.95 per common share for the full-year 2016.