Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MASCO CORP /DE/ | d576224d8k.htm |
Exhibit 99
MASCO ACCELERATES GROWTH TREND IN SECOND QUARTER 2013
Key Quarter Highlights
| • | Sales increased 10 percent to $2.1 billion |
| • | North American sales increased 11 percent |
| • | Growth driven by new home construction and new products and programs at retail |
| • | Adjusted operating profit margin expanded 290 bps to 9.6 percent |
| • | All segments positively contributed to top and bottom line growth |
Taylor, Michigan (July 29, 2013) — Masco Corporation (NYSE: MAS) continued its trend of delivering growth in the second quarter of 2013. All operating segments contributed to both top and bottom line growth, accelerated by the strength of new home construction in North America and the successful execution of new product and program introductions at retail. Adjusted operating margins increased to 9.6 percent from 6.7 percent due to higher volumes and increased operating leverage.
2013 Second Quarter Commentary
| • | Net sales from continuing operations increased 10 percent to $2.1 billion, compared with $1.9 billion for second quarter 2012. North American sales increased 11 percent and international sales increased 7 percent in U.S. dollars and 6 percent in local currency |
| • | Compared to second quarter 2012, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, were as follows: |
| • | Gross margins of 28.9 percent increased 200 bps |
| • | Operating margins were 9.6 percent compared to 6.7 percent |
| • | Income from continuing operations was $0.23 per common share compared to $0.11 per common share |
| • | Income/(loss) from continuing operations, as reported, was $0.23 per common share compared to ($0.15) per common share in the second quarter of 2012 |
| • | We ended the second quarter with approximately $1.2 billion of cash |
2013 Second Quarter Operating Segment Highlights
| • | Plumbing Products benefitted from North American faucet and toilet sales growth percentage in the mid-teens |
| • | Decorative Architectural Products drove sales growth through new product introductions and the continued success of programs with retail partners |
| • | Cabinets and Related Products achieved profitability by remaining focused on turnaround efforts |
| • | Installation and Other Services delivered profitable growth, benefitting from the strength of new home construction |
| • | Other Specialty Products accelerated top and bottom line growth led by North American window sales, which increased approximately 20 percent |
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“We are very pleased with our second quarter 2013 results, certainly one of the strongest quarters since the downturn and a continuation of the momentum which started for us in the fourth quarter of 2012,” said Masco’s President and CEO, Tim Wadhams. “Top and bottom line growth was delivered by each of our segments in the second quarter against a backdrop of continued growth in North American new home construction and new product introductions. Continuing our trend, we introduced new products in our Decorative Architectural segment and benefited from the growth of previously introduced new products and programs at retail. Our Cabinet and Installation segments further improved their performance by achieving profitability and we remain focused on driving profitable growth in our North American cabinetry business. In addition, we were pleased with our international sales growth, given the weakness in European economies. Our strong performance reflects our ongoing success in leveraging the housing recovery and the continued execution of our strategic priorities, including our focus on cost containment.”
Outlook
“We believe that new home construction will continue to show strong growth in 2013, and we are encouraged by the improvement in repair and remodeling trends. While this growth is promising, uncertainties related to the overall strength of the U. S. economy and the lingering weakness in the Eurozone persists. Given that, we remain focused on navigating successfully through this recovery. We continue to believe that the actions we have taken over the past several years, including investing in our brands, reducing our cost structure and paying down debt, have strengthened our business for the future,” said Mr. Wadhams.
About Masco
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 2013 second quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com.
Conference Call Details
A conference call regarding items contained in this release is scheduled for Tuesday, July 30, 2013 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing (855) 226-2726 (855-22MASCO) and from outside the U.S. at (706) 679-3614. Please use the conference identification number 12296334. The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website.
A replay of the call will be available on Masco’s website or by phone by dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use the conference identification number 12296334. The telephone replay will be available approximately two hours after the end of the call and continue through August 14, 2013.
Safe Harbor Statement
Statements contained in this press release that reflect our views about our future performance constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believe,” “anticipate,” “appear,” “may,” “will,” “should,”
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“intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by our reliance on new home construction and home improvement, our reliance on key customers, the cost and availability of raw materials, uncertainty in the international economy, shifts in consumer preferences and purchasing practices, our ability to improve our underperforming businesses, and our ability to maintain our competitive position in our industries. These and other factors are discussed in detail in Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Our forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.
The Company believes that the non-GAAP performance measures and ratios that are contained herein, used in managing the business, may provide users of this financial information with additional 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 Securities and Exchange Commission and is available on Masco’s website at www.masco.com.
Investor / Media Contact
Maria Duey
Vice President – Investor Relations &
Corporate Communications
313.792.5500
maria_duey@mascohq.com
# # #
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MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three Months and Six Months Ended June 30, 2013 and 2012
(dollars in millions, except EPS)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net sales |
$ | 2,149 | $ | 1,945 | $ | 4,025 | $ | 3,751 | ||||||||
| Cost of sales |
1,540 | 1,424 | 2,908 | 2,746 | ||||||||||||
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| Gross profit |
609 | 521 | 1,117 | 1,005 | ||||||||||||
| Selling, general and administrative expenses |
421 | 392 | 797 | 769 | ||||||||||||
| Charge from litigation settlements, net |
— | 75 | — | 73 | ||||||||||||
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| Operating profit |
188 | 54 | 320 | 163 | ||||||||||||
| Other income (expense), net |
(62 | ) | (66 | ) | (118 | ) | (131 | ) | ||||||||
| Gains from financial investments, net |
5 | — | 8 | 16 | ||||||||||||
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| Income (loss) from continuing operations before income taxes |
131 | (12 | ) | 210 | 48 | |||||||||||
| Income taxes |
39 | 31 | 53 | 38 | ||||||||||||
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| Income (loss) from continuing operations |
92 | (43 | ) | 157 | 10 | |||||||||||
| Loss from discontinued operations |
(5 | ) | (24 | ) | (14 | ) | (33 | ) | ||||||||
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| Net income (loss) |
87 | (67 | ) | 143 | (23 | ) | ||||||||||
| Less: Net income attributable to noncontrolling interest |
10 | 8 | 19 | 19 | ||||||||||||
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| Net income (loss) attributable to Masco Corporation |
$ | 77 | $ | (75 | ) | $ | 124 | $ | (42 | ) | ||||||
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| Income (loss) per common share attributable to Masco Corporation (diluted): |
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| Income (loss) from continuing operations |
$ | 0.23 | $ | (0.15 | ) | $ | 0.38 | $ | (0.03 | ) | ||||||
| Loss from discontinued operations |
(0.01 | ) | (0.07 | ) | (0.04 | ) | (0.09 | ) | ||||||||
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| Net income (loss) |
$ | 0.21 | $ | (0.22 | ) | $ | 0.34 | $ | (0.12 | ) | ||||||
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| Average diluted common shares outstanding |
352 | 349 | 352 | 349 | ||||||||||||
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| Amounts attributable to Masco Corporation: |
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| Income (loss) from continuing operations |
$ | 82 | $ | (51 | ) | $ | 138 | $ | (9 | ) | ||||||
| Loss from discontinued operations |
(5 | ) | (24 | ) | (14 | ) | (33 | ) | ||||||||
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| Net income (loss) |
$ | 77 | $ | (75 | ) | $ | 124 | $ | (42 | ) | ||||||
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| Historical information is available on our website. | 1 |
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months and Six Months Ended June 30, 2013 and 2012
(dollars in millions, except EPS)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Gross Profit and Operating Profit Reconciliations |
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| Net sales |
$ | 2,149 | $ | 1,945 | $ | 4,025 | $ | 3,751 | ||||||||
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| Gross profit, as reported |
$ | 609 | $ | 521 | $ | 1,117 | $ | 1,005 | ||||||||
| Rationalization charges |
11 | 3 | 17 | 13 | ||||||||||||
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| Gross profit, as adjusted |
$ | 620 | $ | 524 | $ | 1,134 | $ | 1,018 | ||||||||
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| Gross margin, as reported |
28.3 | % | 26.8 | % | 27.8 | % | 26.8 | % | ||||||||
| Gross margin, as adjusted |
28.9 | % | 26.9 | % | 28.2 | % | 27.1 | % | ||||||||
| Operating profit, as reported |
$ | 188 | $ | 54 | $ | 320 | $ | 163 | ||||||||
| Rationalization charges |
18 | 7 | 26 | 18 | ||||||||||||
| Gain from sale of fixed assets |
— | (5 | ) | — | (5 | ) | ||||||||||
| Charge for litigation settlements, net |
— | 75 | — | 73 | ||||||||||||
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| Operating profit, as adjusted |
$ | 206 | $ | 131 | $ | 346 | $ | 249 | ||||||||
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| Operating margin, as reported |
8.7 | % | 2.8 | % | 8.0 | % | 4.3 | % | ||||||||
| Operating margin, as adjusted |
9.6 | % | 6.7 | % | 8.6 | % | 6.6 | % | ||||||||
| Earnings Per Common Share Reconciliation |
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| Income (loss) from continuing operations before income taxes, as reported |
$ | 131 | $ | (12 | ) | $ | 210 | $ | 48 | |||||||
| Rationalization charges |
18 | 7 | 26 | 18 | ||||||||||||
| Gain from sale of fixed assets |
— | (5 | ) | — | (5 | ) | ||||||||||
| Charge for litigation settlements, net |
— | 75 | — | 73 | ||||||||||||
| Gains from financial investments, net |
(5 | ) | — | (8 | ) | (16 | ) | |||||||||
| Interest carry costs |
— | 7 | — | 7 | ||||||||||||
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| Income from continuing operations before income taxes, as adjusted |
144 | 72 | 228 | 125 | ||||||||||||
| Tax at 36% rate |
(52 | ) | (26 | ) | (82 | ) | (45 | ) | ||||||||
| Less: Net income attributable to noncontrolling interest |
10 | 8 | 19 | 19 | ||||||||||||
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| Net income, as adjusted |
$ | 82 | $ | 38 | $ | 127 | $ | 61 | ||||||||
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| Income per common share, as adjusted |
$ | 0.23 | $ | 0.11 | $ | 0.36 | $ | 0.17 | ||||||||
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| Average diluted common shares outstanding |
352 | 349 | 352 | 349 | ||||||||||||
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| Historical information is available on our website. | 2 |
MASCO CORPORATION
Condensed Consolidated Balance Sheets and
Other Financial Data - Unaudited
(dollars in millions)
| June 30, | December 31, | |||||||
| Balance Sheet | 2013 | 2012 | ||||||
| Assets | ||||||||
| Current assets: |
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| Cash and cash investments |
$ | 1,223 | $ | 1,351 | ||||
| Receivables |
1,255 | 933 | ||||||
| Inventories |
791 | 726 | ||||||
| Prepaid expenses and other |
109 | 107 | ||||||
| Assets held for sale |
101 | 100 | ||||||
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| Total current assets |
3,479 | 3,217 | ||||||
| Property and equipment, net |
1,276 | 1,326 | ||||||
| Goodwill |
1,894 | 1,894 | ||||||
| Other intangible assets, net |
149 | 151 | ||||||
| Other assets |
173 | 184 | ||||||
| Assets held for sale |
91 | 103 | ||||||
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| Total assets |
$ | 7,062 | $ | 6,875 | ||||
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| Liabilities |
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| Current liabilities: |
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| Notes payable |
$ | 207 | $ | 206 | ||||
| Accounts payable |
998 | 788 | ||||||
| Accrued liabilities |
789 | 823 | ||||||
| Liabilities held for sale |
48 | 45 | ||||||
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| Total current liabilities |
2,042 | 1,862 | ||||||
| Long-term debt |
3,421 | 3,422 | ||||||
| Deferred income taxes and other |
1,050 | 1,053 | ||||||
| Liabilities held for sale |
— | 4 | ||||||
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| Total liabilities |
6,513 | 6,341 | ||||||
| Shareholders’ equity |
549 | 534 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 7,062 | $ | 6,875 | ||||
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| Year To Date | ||||||||
| June 30, | June 30, | |||||||
| 2013 | 2012 | |||||||
| Other Financial Data |
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| Working Capital Days |
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| Receivable Days |
51 | 51 | ||||||
| Inventory Days |
51 | 55 | ||||||
| Payable Days |
67 | 65 | ||||||
| Working Capital |
$ | 1,048 | $ | 1,109 | ||||
| Working Capital as a % of Sales (LTM) |
13.1 | % | 14.6 | % | ||||
| Historical information is available on our website. | 3 |
MASCO CORPORATION
Condensed Consolidated Statement of Cash Flows - Unaudited
(dollars in millions)
| June 30, | June 30, | |||||||
| 2013 | 2012 | |||||||
| Cash Flows From (For) Operating Activities: |
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| Cash provided by operating activities |
$ | 299 | $ | 109 | ||||
| Working capital changes |
(240 | ) | (113 | ) | ||||
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| Net cash from (for) operating activities |
59 | (4 | ) | |||||
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| Cash Flows From (For) Financing Activities: |
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| Purchase of Company common stock |
(35 | ) | (8 | ) | ||||
| Cash dividends paid |
(54 | ) | (53 | ) | ||||
| Dividend paid to noncontrolling interest |
(34 | ) | (40 | ) | ||||
| Credit Agreement costs |
(4 | ) | — | |||||
| Debt, net |
— | 324 | ||||||
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| Net cash (for) from financing activities |
(127 | ) | 223 | |||||
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| Cash Flows From (For) Investing Activities: |
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| Capital expenditures |
(59 | ) | (52 | ) | ||||
| Other, net |
8 | 37 | ||||||
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| Net cash for investing activities |
(51 | ) | (15 | ) | ||||
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| Effects of exchange rate changes on cash and cash investments |
(9 | ) | (7 | ) | ||||
| Cash and Cash Investments: |
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| (Decrease) increase for the period |
(128 | ) | 197 | |||||
| At January 1 |
1,351 | 1,656 | ||||||
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| At June 30 |
$ | 1,223 | $ | 1,853 | ||||
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| Historical information is available on our website. | 4 |
MASCO CORPORATION
Quarterly Segment Data - Unaudited
For the Three Months and Six Months Ended June 30, 2013 and 2012
(dollars in millions)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
| 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||||
| Cabinets and Related Products |
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| Net sales |
$ | 265 | $ | 253 | 5 | % | $ | 501 | $ | 481 | 4 | % | ||||||||||||
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| Operating profit (loss), as reported |
$ | 2 | $ | (5 | ) | $ | (2 | ) | $ | (21 | ) | |||||||||||||
| Operating margin, as reported |
0.8 | % | -2.0 | % | -0.4 | % | -4.4 | % | ||||||||||||||||
| Rationalization charges |
1 | 1 | 3 | 3 | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
2 | — | 4 | — | ||||||||||||||||||||
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| Operating profit (loss), as adjusted |
5 | (4 | ) | 5 | (18 | ) | ||||||||||||||||||
| Operating margin, as adjusted |
1.9 | % | -1.6 | % | 1.0 | % | -3.7 | % | ||||||||||||||||
| Depreciation and amortization |
9 | 10 | 19 | 20 | ||||||||||||||||||||
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| EBITDA, as adjusted |
$ | 14 | $ | 6 | $ | 24 | $ | 2 | ||||||||||||||||
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| Plumbing Products |
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| Net sales |
$ | 802 | $ | 738 | 9 | % | $ | 1,564 | $ | 1,480 | 6 | % | ||||||||||||
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| Operating profit, as reported |
$ | 102 | $ | 70 | $ | 188 | $ | 167 | ||||||||||||||||
| Operating margin, as reported |
12.7 | % | 9.5 | % | 12.0 | % | 11.3 | % | ||||||||||||||||
| Rationalization charges |
7 | 1 | 8 | 3 | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
1 | 2 | 1 | 9 | ||||||||||||||||||||
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| Operating profit, as adjusted |
110 | 73 | 197 | 179 | ||||||||||||||||||||
| Operating margin, as adjusted |
13.7 | % | 9.9 | % | 12.6 | % | 12.1 | % | ||||||||||||||||
| Depreciation and amortization |
15 | 14 | 30 | 29 | ||||||||||||||||||||
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| EBITDA, as adjusted |
$ | 125 | $ | 87 | $ | 227 | $ | 208 | ||||||||||||||||
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| Installation and Other Services |
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| Net sales |
$ | 357 | $ | 296 | 21 | % | $ | 669 | $ | 574 | 17 | % | ||||||||||||
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| Operating profit (loss), as reported |
$ | 8 | $ | (9 | ) | $ | 4 | $ | (23 | ) | ||||||||||||||
| Operating margin, as reported |
2.2 | % | -3.0 | % | 0.6 | % | -4.0 | % | ||||||||||||||||
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| Operating profit (loss), as adjusted |
8 | (9 | ) | 4 | (23 | ) | ||||||||||||||||||
| Operating margin, as adjusted |
2.2 | % | -3.0 | % | 0.6 | % | -4.0 | % | ||||||||||||||||
| Depreciation and amortization |
7 | 7 | 14 | 15 | ||||||||||||||||||||
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| EBITDA, as adjusted |
$ | 15 | $ | (2 | ) | $ | 18 | $ | (8 | ) | ||||||||||||||
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| Decorative Architectural Products |
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| Net sales |
$ | 565 | $ | 517 | 9 | % | $ | 997 | $ | 951 | 5 | % | ||||||||||||
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| Operating profit, as reported |
$ | 104 | $ | 95 | $ | 193 | $ | 168 | ||||||||||||||||
| Operating margin, as reported |
18.4 | % | 18.4 | % | 19.4 | % | 17.7 | % | ||||||||||||||||
| Rationalization charges |
1 | — | 1 | — | ||||||||||||||||||||
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| Operating profit, as adjusted |
105 | 95 | 194 | 168 | ||||||||||||||||||||
| Operating margin, as adjusted |
18.6 | % | 18.4 | % | 19.5 | % | 17.7 | % | ||||||||||||||||
| Depreciation and amortization |
4 | 4 | 8 | 8 | ||||||||||||||||||||
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| EBITDA, as adjusted |
$ | 109 | $ | 99 | $ | 202 | $ | 176 | ||||||||||||||||
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| Historical information is available on our website. | 5 |
MASCO CORPORATION
Quarterly Segment Data - Unaudited
For the Three Months and Six Months Ended June 30, 2013 and 2012
(dollars in millions)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
| 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||||
| Other Specialty Products |
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| Net sales |
$ | 160 | $ | 141 | 13 | % | $ | 294 | $ | 265 | 11 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
$ | 11 | $ | 6 | $ | 10 | $ | 1 | ||||||||||||||||
| Operating margin, as reported |
6.9 | % | 4.3 | % | 3.4 | % | 0.4 | % | ||||||||||||||||
| Rationalization charges |
1 | — | 2 | — | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
2 | — | 4 | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
14 | 6 | 16 | 1 | ||||||||||||||||||||
| Operating margin, as adjusted |
8.8 | % | 4.3 | % | 5.4 | % | 0.4 | % | ||||||||||||||||
| Depreciation and amortization |
2 | 6 | 5 | 11 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 16 | $ | 12 | $ | 21 | $ | 12 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
||||||||||||||||||||||||
| Net sales |
$ | 2,149 | $ | 1,945 | 10 | % | $ | 4,025 | $ | 3,751 | 7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported - segment |
$ | 227 | $ | 157 | $ | 393 | $ | 292 | ||||||||||||||||
| General corporate expense, net (GCE) |
(39 | ) | (33 | ) | (73 | ) | (61 | ) | ||||||||||||||||
| Gain from sales of fixed assets |
— | 5 | — | 5 | ||||||||||||||||||||
| Charge for litigation settlements, net |
— | (75 | ) | — | (73 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
188 | 54 | 320 | 163 | ||||||||||||||||||||
| Operating margin, as reported |
8.7 | % | 2.8 | % | 8.0 | % | 4.3 | % | ||||||||||||||||
| Rationalization charges - segment |
10 | 2 | 14 | 6 | ||||||||||||||||||||
| Accelerated depreciation - segment |
5 | 2 | 9 | 9 | ||||||||||||||||||||
| Rationalization charges - GCE |
3 | 3 | 3 | 3 | ||||||||||||||||||||
| Gain from sales of fixed assets |
— | (5 | ) | — | (5 | ) | ||||||||||||||||||
| Charge for litigation settlements, net |
— | 75 | — | 73 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
206 | 131 | 346 | 249 | ||||||||||||||||||||
| Operating margin, as adjusted |
9.6 | % | 6.7 | % | 8.6 | % | 6.6 | % | ||||||||||||||||
| Depreciation and amortization - segment |
37 | 41 | 76 | 83 | ||||||||||||||||||||
| Depreciation and amortization - non-operating |
3 | 4 | 6 | 7 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 246 | $ | 176 | $ | 428 | $ | 339 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Historical information is available on our website. | 6 |
MASCO CORPORATION
North American and International Data - Unaudited
For the Three Months and Six Months Ended June 30, 2013 and 2012
(dollars in millions)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
| 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||||
| North American |
||||||||||||||||||||||||
| Net sales |
$ | 1,765 | $ | 1,587 | 11 | % | $ | 3,275 | $ | 3,018 | 9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
$ | 185 | $ | 125 | $ | 325 | $ | 213 | ||||||||||||||||
| Operating margin, as reported |
10.5 | % | 7.9 | % | 9.9 | % | 7.1 | % | ||||||||||||||||
| Rationalization charges |
6 | 2 | 7 | 6 | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
3 | 2 | 5 | 9 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
194 | 129 | 337 | 228 | ||||||||||||||||||||
| Operating margin, as adjusted |
11.0 | % | 8.1 | % | 10.3 | % | 7.6 | % | ||||||||||||||||
| Depreciation and amortization |
29 | 32 | 60 | 64 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 223 | $ | 161 | $ | 397 | $ | 292 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| International |
||||||||||||||||||||||||
| Net sales |
$ | 384 | $ | 358 | 7 | % | $ | 750 | $ | 733 | 2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
$ | 42 | $ | 32 | $ | 68 | $ | 79 | ||||||||||||||||
| Operating margin, as reported |
10.9 | % | 8.9 | % | 9.1 | % | 10.8 | % | ||||||||||||||||
| Rationalization charges |
4 | — | 7 | — | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
2 | — | 4 | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
48 | 32 | 79 | 79 | ||||||||||||||||||||
| Operating margin, as adjusted |
12.5 | % | 8.9 | % | 10.5 | % | 10.8 | % | ||||||||||||||||
| Depreciation and amortization |
8 | 9 | 16 | 19 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 56 | $ | 41 | $ | 95 | $ | 98 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
||||||||||||||||||||||||
| Net sales |
$ | 2,149 | $ | 1,945 | 10 | % | $ | 4,025 | $ | 3,751 | 7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported - segment |
$ | 227 | $ | 157 | $ | 393 | $ | 292 | ||||||||||||||||
| General corporate expense, net (GCE) |
(39 | ) | (33 | ) | (73 | ) | (61 | ) | ||||||||||||||||
| Gain from sales of fixed assets |
— | 5 | — | 5 | ||||||||||||||||||||
| Charge for litigation settlements, net |
— | (75 | ) | — | (73 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
188 | 54 | 320 | 163 | ||||||||||||||||||||
| Operating margin, as reported |
8.7 | % | 2.8 | % | 8.0 | % | 4.3 | % | ||||||||||||||||
| Rationalization charges - segment |
10 | 2 | 14 | 6 | ||||||||||||||||||||
| Accelerated depreciation - segment |
5 | 2 | 9 | 9 | ||||||||||||||||||||
| Rationalization charges - GCE |
3 | 3 | 3 | 3 | ||||||||||||||||||||
| Accelerated depreciation - GCE |
— | — | — | — | ||||||||||||||||||||
| Gain from sales of fixed assets |
— | (5 | ) | — | (5 | ) | ||||||||||||||||||
| Charge for litigation settlements, net |
— | 75 | — | 73 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
206 | 131 | 346 | 249 | ||||||||||||||||||||
| Operating margin, as adjusted |
9.6 | % | 6.7 | % | 8.6 | % | 6.6 | % | ||||||||||||||||
| Depreciation and amortization - segment |
37 | 41 | 76 | 83 | ||||||||||||||||||||
| Depreciation and amortization - non-operating |
3 | 4 | 6 | 7 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 246 | $ | 176 | $ | 428 | $ | 339 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Historical information is available on our website. | 7 |