Attached files
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| 8-K - 8-K - MASCO CORP /DE/ | d617018d8k.htm |
MASCO CONTINUES MARGIN EXPANSION IN THIRD QUARTER 2013
Key Quarter Highlights
| • | Sales increased 12 percent to $2.2 billion |
| • | North American sales increased 13 percent |
| • | All segments positively contributed to top line growth |
| • | Adjusted operating profit margin expanded 260 bps to 10.3 percent |
| • | Retired $200 million debt maturity |
Taylor, Michigan (October 28, 2013) — Masco Corporation (NYSE: MAS) continued to deliver growth in the third quarter of 2013. All operating segments contributed to top line growth, accelerated by the strength of new home construction in North America and improvement in repair and remodel activity. Adjusted operating margins increased to 10.3 percent from 7.7 percent due to higher volumes and operating leverage.
2013 Third Quarter Commentary
| • | Net sales from continuing operations increased 12 percent to $2.2 billion, compared with $1.9 billion for third quarter 2012. North American sales increased 13 percent and international sales increased 9 percent in U.S. dollars and 5 percent in local currency |
| • | Compared to third 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 28.5 percent increased 120 bps |
| • | Operating margins of 10.3 percent increased 260 bps |
| • | Income from continuing operations was $0.27 per common share compared to $0.14 per common share |
| • | Income from continuing operations, as reported, was $0.29 per common share compared to $0.07 per common share in the third quarter 2012 |
| • | We ended the third quarter with approximately $1.3 billion of cash, cash investments and short-term bank deposits |
2013 Third Quarter Operating Segment Highlights
| • | Plumbing Products benefited from a North American faucet and toilet sales growth percentage in the mid-teens, with particular strength in the trade channel |
| • | Decorative Architectural Products delivered gallon volume growth through recently introduced products and programs |
| • | Cabinets and Related Products grew sales across all channels in North America, including direct to builder, dealer, and retail, and in all three brands: KraftMaid®, Merillat® and QualityCabinets™ |
| • | Installation and Other Services delivered improved top line and bottom line performance, benefiting from the strength of new home construction |
| • | Other Specialty Products continued top line growth, led by North American window sales growth percentage in the mid-teens |
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“We are very pleased with our third quarter 2013 results, our eighth consecutive quarter of both sales growth and margin expansion (as adjusted). We continued to gain momentum across all segments,” said Masco’s President and CEO, Tim Wadhams. “Top line growth was delivered by each segment in the third quarter supported by continued growth in North American new home construction, improving repair and remodel activity and increased international sales. In our Decorative Architectural segment, sales benefited from BEHR PREMIUM DECKOVER® launched earlier this year. New products and programs drove sales, particularly to the trade, across virtually all categories in our Plumbing Products segment. In our North American Cabinetry business, we remained focused on further improving profitability with sales growth across all three channels. Our strong performance reflects our success in leveraging the housing recovery and the continued execution of our strategic priorities company-wide, including our focus on cost containment.”
Outlook
“Economic uncertainties in the U.S. are impacting consumer confidence, making the pace of the U.S. economic recovery uneven,” said Mr. Wadhams. “Despite this, we believe that demand for our products will continue to improve. We expect new home construction demand to drive continued increases in housing starts and we are also very encouraged by the ongoing improvement in repair and remodel activity in the U.S. While still challenging, economic conditions in Europe are slowly improving. Our results reflect the benefits of the actions we have taken over the past several years, including investing in our brands and innovation, reducing our cost structure and paying down debt. We have strengthened our business by these actions, which should continue to positively impact our results going forward as we focus on successfully navigating through this recovery.”
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 third 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, October 29, 2013 at 8:00 a.m. EDT. 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 75879461. 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 75879461. The telephone replay will be available approximately two hours after the end of the call and continue through November 12, 2013.
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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,” “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 Nine Months Ended September 30, 2013 and 2012
(dollars in millions, except EPS)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net sales |
$ | 2,150 | $ | 1,913 | $ | 6,175 | $ | 5,664 | ||||||||
| Cost of sales |
1,543 | 1,413 | 4,451 | 4,159 | ||||||||||||
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| Gross profit |
607 | 500 | 1,724 | 1,505 | ||||||||||||
| Selling, general and administrative expenses |
395 | 391 | 1,192 | 1,160 | ||||||||||||
| Charge for litigation settlements, net |
— | 1 | — | 74 | ||||||||||||
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| Operating profit |
212 | 108 | 532 | 271 | ||||||||||||
| Other income (expense), net |
(58 | ) | (59 | ) | (176 | ) | (190 | ) | ||||||||
| Gains from financial investments, net |
— | 2 | 8 | 18 | ||||||||||||
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| Income from continuing operations before income taxes |
154 | 51 | 364 | 99 | ||||||||||||
| Income taxes |
38 | 16 | 91 | 54 | ||||||||||||
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| Income from continuing operations |
116 | 35 | 273 | 45 | ||||||||||||
| Loss from discontinued operations |
(2 | ) | (11 | ) | (16 | ) | (44 | ) | ||||||||
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| Net income |
114 | 24 | 257 | 1 | ||||||||||||
| Less: Net income attributable to noncontrolling interest |
11 | 9 | 30 | 28 | ||||||||||||
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| Net income (loss) attributable to Masco Corporation |
$ | 103 | $ | 15 | $ | 227 | $ | (27 | ) | |||||||
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| Income (loss) per common share attributable to Masco Corporation (diluted): |
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| Income from continuing operations |
$ | 0.29 | $ | 0.07 | $ | 0.67 | $ | 0.04 | ||||||||
| Loss from discontinued operations |
(0.01 | ) | (0.03 | ) | (0.04 | ) | (0.12 | ) | ||||||||
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| Net income (loss) |
$ | 0.29 | $ | 0.04 | $ | 0.63 | $ | (0.08 | ) | |||||||
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| Average diluted common shares outstanding |
352 | 350 | 352 | 350 | ||||||||||||
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| Amounts attributable to Masco Corporation: |
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| Income from continuing operations |
$ | 105 | $ | 26 | $ | 243 | $ | 17 | ||||||||
| Loss from discontinued operations |
(2 | ) | (11 | ) | (16 | ) | (44 | ) | ||||||||
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| Net income (loss) |
$ | 103 | $ | 15 | $ | 227 | $ | (27 | ) | |||||||
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MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months and Nine Months Ended September 30, 2013 and 2012
(dollars in millions, except EPS)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Gross Profit and Operating Profit Reconciliations |
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| Net sales |
$ | 2,150 | $ | 1,913 | $ | 6,175 | $ | 5,664 | ||||||||
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| Gross profit, as reported |
$ | 607 | $ | 500 | $ | 1,724 | $ | 1,505 | ||||||||
| Rationalization charges |
6 | 10 | 23 | 23 | ||||||||||||
| Other Specialty Products - warranty |
— | 12 | — | 12 | ||||||||||||
| Gain from sale of fixed assets |
— | — | — | (5 | ) | |||||||||||
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| Gross profit, as adjusted |
$ | 613 | $ | 522 | $ | 1,747 | $ | 1,535 | ||||||||
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| Gross margin, as reported |
28.2 | % | 26.1 | % | 27.9 | % | 26.6 | % | ||||||||
| Gross margin, as adjusted |
28.5 | % | 27.3 | % | 28.3 | % | 27.1 | % | ||||||||
| Operating profit, as reported |
$ | 212 | $ | 108 | $ | 532 | $ | 271 | ||||||||
| Rationalization charges |
10 | 27 | 36 | 45 | ||||||||||||
| Other Specialty Products - warranty |
— | 12 | — | 12 | ||||||||||||
| Gain from sale of fixed assets |
— | — | — | (5 | ) | |||||||||||
| Charge for litigation settlements, net |
— | 1 | — | 74 | ||||||||||||
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| Operating profit, as adjusted |
$ | 222 | $ | 148 | $ | 568 | $ | 397 | ||||||||
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| Operating margin, as reported |
9.9 | % | 5.6 | % | 8.6 | % | 4.8 | % | ||||||||
| Operating margin, as adjusted |
10.3 | % | 7.7 | % | 9.2 | % | 7.0 | % | ||||||||
| Earnings Per Common Share Reconciliation |
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| Income from continuing operations before income taxes, as reported |
$ | 154 | $ | 51 | $ | 364 | $ | 99 | ||||||||
| Rationalization charges |
10 | 27 | 36 | 45 | ||||||||||||
| Other Specialty Products - warranty |
— | 12 | — | 12 | ||||||||||||
| Gain from sale of fixed assets |
— | — | — | (5 | ) | |||||||||||
| Charge for litigation settlements, net |
— | 1 | — | 74 | ||||||||||||
| Gains from financial investments, net |
— | (2 | ) | (8 | ) | (18 | ) | |||||||||
| Interest carry costs |
— | — | — | 7 | ||||||||||||
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| Income from continuing operations before income taxes, as adjusted |
164 | 89 | 392 | 214 | ||||||||||||
| Tax at 36% rate |
(59 | ) | (32 | ) | (141 | ) | (77 | ) | ||||||||
| Less: Net income attributable to noncontrolling interest |
11 | 9 | 30 | 28 | ||||||||||||
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| Net income, as adjusted |
$ | 94 | $ | 48 | $ | 221 | $ | 109 | ||||||||
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| Income per common share, as adjusted |
$ | 0.27 | $ | 0.14 | $ | 0.63 | $ | 0.31 | ||||||||
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| Average diluted common shares outstanding |
352 | 350 | 352 | 350 | ||||||||||||
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MASCO CORPORATION
Condensed Consolidated Balance Sheets and
Other Financial Data - Unaudited
(dollars in millions)
| September 30, 2013 |
December 31, 2012 |
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| Balance Sheet |
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| Assets |
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| Current assets: |
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| Cash and cash investments |
$ | 1,011 | $ | 1,040 | ||||
| Short-term bank deposits |
277 | 311 | ||||||
| Receivables |
1,211 | 933 | ||||||
| Inventories |
777 | 726 | ||||||
| Prepaid expenses and other |
119 | 107 | ||||||
| Assets held for sale |
98 | 100 | ||||||
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| Total current assets |
3,493 | 3,217 | ||||||
| Property and equipment, net |
1,257 | 1,326 | ||||||
| Goodwill |
1,900 | 1,894 | ||||||
| Other intangible assets, net |
149 | 151 | ||||||
| Other assets |
166 | 184 | ||||||
| Assets held for sale |
94 | 103 | ||||||
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| Total assets |
$ | 7,059 | $ | 6,875 | ||||
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| Liabilities |
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| Current liabilities: |
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| Notes payable |
$ | 5 | $ | 206 | ||||
| Accounts payable |
986 | 788 | ||||||
| Accrued liabilities |
847 | 823 | ||||||
| Liabilities held for sale |
49 | 45 | ||||||
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| Total current liabilities |
1,887 | 1,862 | ||||||
| Long-term debt |
3,421 | 3,422 | ||||||
| Deferred income taxes and other |
1,065 | 1,053 | ||||||
| Liabilities held for sale |
— | 4 | ||||||
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| Total liabilities |
6,373 | 6,341 | ||||||
| Shareholders’ equity |
686 | 534 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 7,059 | $ | 6,875 | ||||
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| Year To Date | ||||||||
| September 30, 2013 |
September 30, 2012 |
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| Other Financial Data |
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| Working Capital Days |
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| Receivable Days |
49 | 51 | ||||||
| Inventory Days |
49 | 54 | ||||||
| Payable Days |
70 | 65 | ||||||
| Working Capital |
$ | 1,002 | $ | 1,120 | ||||
| Working Capital as a % of Sales (LTM) |
12.1 | % | 14.8 | % | ||||
MASCO CORPORATION
Condensed Consolidated Statement of Cash Flows - Unaudited
(dollars in millions)
| September 30, 2013 |
September 30, 2012 |
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| Cash Flows From (For) Operating Activities: |
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| Cash provided by operating activities |
$ | 489 | $ | 191 | ||||
| Working capital changes |
(139 | ) | (101 | ) | ||||
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| Net cash from operating activities |
350 | 90 | ||||||
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| Cash Flows From (For) Financing Activities: |
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| Purchase of Company common stock |
(35 | ) | (8 | ) | ||||
| Cash dividends paid |
(81 | ) | (80 | ) | ||||
| Dividend paid to noncontrolling interest |
(34 | ) | (40 | ) | ||||
| Credit Agreement costs |
(4 | ) | — | |||||
| Debt, net |
(202 | ) | (420 | ) | ||||
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| Net cash for financing activities |
(356 | ) | (548 | ) | ||||
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| Cash Flows From (For) Investing Activities: |
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| Capital expenditures |
(88 | ) | (80 | ) | ||||
| Other, net |
67 | 63 | ||||||
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| Net cash for investing activities |
(21 | ) | (17 | ) | ||||
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| Effects of exchange rate changes on cash and cash investments |
(2 | ) | 11 | |||||
| Cash and Cash Investments: |
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| Decrease for the period |
(29 | ) | (464 | ) | ||||
| At January 1 |
1,040 | 1,353 | ||||||
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| At September 30 |
$ | 1,011 | $ | 889 | ||||
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| As of September 30, | ||||||||
| 2013 | 2012 | |||||||
| Liquidity |
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| Cash and cash investments |
$ | 1,011 | $ | 889 | ||||
| Short-term bank deposits |
277 | 277 | ||||||
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| Total Liquidity |
$ | 1,288 | $ | 1,166 | ||||
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MASCO CORPORATION
Quarterly Segment Data - Unaudited
For the Three Months and Nine Months Ended September 30, 2013 and 2012
(dollars in millions)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||||
| Cabinets and Related Products |
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| Net sales |
$ | 262 | $ | 228 | 15 | % | $ | 763 | $ | 709 | 8 | % | ||||||||||||
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| Operating loss, as reported |
$ | (2 | ) | $ | (28 | ) | $ | (4 | ) | $ | (49 | ) | ||||||||||||
| Operating margin, as reported |
-0.8 | % | -12.3 | % | -0.5 | % | -6.9 | % | ||||||||||||||||
| Rationalization charges |
1 | 6 | 4 | 9 | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
2 | 2 | 6 | 2 | ||||||||||||||||||||
| Impairment of goodwill and other intangible assets |
— | — | — | — | ||||||||||||||||||||
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| Operating profit (loss), as adjusted |
1 | (20 | ) | 6 | (38 | ) | ||||||||||||||||||
| Operating margin, as adjusted |
0.4 | % | -8.8 | % | 0.8 | % | -5.4 | % | ||||||||||||||||
| Depreciation and amortization |
9 | 10 | 28 | 30 | ||||||||||||||||||||
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| EBITDA, as adjusted |
$ | 10 | $ | (10 | ) | $ | 34 | $ | (8 | ) | ||||||||||||||
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| Plumbing Products |
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| Net sales |
$ | 820 | $ | 736 | 11 | % | $ | 2,384 | $ | 2,216 | 8 | % | ||||||||||||
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| Operating profit, as reported |
$ | 118 | $ | 75 | $ | 306 | $ | 242 | ||||||||||||||||
| Operating margin, as reported |
14.4 | % | 10.2 | % | 12.8 | % | 10.9 | % | ||||||||||||||||
| Rationalization charges |
5 | 5 | 13 | 8 | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
1 | 1 | 2 | 10 | ||||||||||||||||||||
| Impairment of goodwill and other intangible assets |
— | — | — | — | ||||||||||||||||||||
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| Operating profit, as adjusted |
124 | 81 | 321 | 260 | ||||||||||||||||||||
| Operating margin, as adjusted |
15.1 | % | 11.0 | % | 13.5 | % | 11.7 | % | ||||||||||||||||
| Depreciation and amortization |
15 | 15 | 45 | 44 | ||||||||||||||||||||
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| EBITDA, as adjusted |
$ | 139 | $ | 96 | $ | 366 | $ | 304 | ||||||||||||||||
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| Installation and Other Services |
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| Net sales |
$ | 370 | $ | 312 | 19 | % | $ | 1,039 | $ | 886 | 17 | % | ||||||||||||
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| Operating profit (loss), as reported |
$ | 18 | $ | (2 | ) | $ | 22 | $ | (25 | ) | ||||||||||||||
| Operating margin, as reported |
4.9 | % | -0.6 | % | 2.1 | % | -2.8 | % | ||||||||||||||||
| Rationalization charges |
1 | 1 | 1 | 1 | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
— | — | — | — | ||||||||||||||||||||
| Impairment of goodwill and other intangible assets |
— | — | — | — | ||||||||||||||||||||
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| Operating profit (loss), as adjusted |
19 | (1 | ) | 23 | (24 | ) | ||||||||||||||||||
| Operating margin, as adjusted |
5.1 | % | -0.3 | % | 2.2 | % | -2.7 | % | ||||||||||||||||
| Depreciation and amortization |
7 | 7 | 21 | 22 | ||||||||||||||||||||
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| EBITDA, as adjusted |
$ | 26 | $ | 6 | $ | 44 | $ | (2 | ) | |||||||||||||||
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| Decorative Architectural Products |
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| Net sales |
$ | 522 | $ | 481 | 9 | % | $ | 1,519 | $ | 1,432 | 6 | % | ||||||||||||
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| Operating profit, as reported |
$ | 93 | $ | 96 | $ | 286 | $ | 264 | ||||||||||||||||
| Operating margin, as reported |
17.8 | % | 20.0 | % | 18.8 | % | 18.4 | % | ||||||||||||||||
| Rationalization charges |
— | — | 1 | — | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
— | — | — | — | ||||||||||||||||||||
| Impairment of goodwill and other intangible assets |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
93 | 96 | 287 | 264 | ||||||||||||||||||||
| Operating margin, as adjusted |
17.8 | % | 20.0 | % | 18.9 | % | 18.4 | % | ||||||||||||||||
| Depreciation and amortization |
4 | 4 | 12 | 12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 97 | $ | 100 | $ | 299 | $ | 276 | ||||||||||||||||
|
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|
|
|
|
|
|
|
|||||||||||||||||
MASCO CORPORATION
Quarterly Segment Data - Unaudited
For the Three Months and Nine Months Ended September 30, 2013 and 2012
(dollars in millions)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||
| 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||||
| Other Specialty Products |
||||||||||||||||||||||||
| Net sales |
$ | 176 | $ | 156 | 13 | % | $ | 470 | $ | 421 | 12 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
$ | 16 | $ | 3 | $ | 26 | $ | 4 | ||||||||||||||||
| Operating margin, as reported |
9.1 | % | 1.9 | % | 5.5 | % | 1.0 | % | ||||||||||||||||
| Rationalization charges |
— | 1 | 2 | 1 | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
— | — | 4 | — | ||||||||||||||||||||
| Impairment of goodwill and other intangible assets |
— | — | — | — | ||||||||||||||||||||
| Other - warranty |
— | 12 | — | 12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
16 | 16 | 32 | 17 | ||||||||||||||||||||
| Operating margin, as adjusted |
9.1 | % | 10.3 | % | 6.8 | % | 4.0 | % | ||||||||||||||||
| Depreciation and amortization * |
5 | 5 | 14 | 16 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 21 | $ | 21 | $ | 46 | $ | 33 | ||||||||||||||||
|
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|
|
|
|
|
|||||||||||||||||
| Total |
||||||||||||||||||||||||
| Net sales |
$ | 2,150 | $ | 1,913 | 12 | % | $ | 6,175 | $ | 5,664 | 9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported - segment |
$ | 243 | $ | 144 | $ | 636 | $ | 436 | ||||||||||||||||
| General corporate expense, net (GCE) |
(31 | ) | (35 | ) | (104 | ) | (96 | ) | ||||||||||||||||
| Gain from sales of fixed assets |
— | — | — | 5 | ||||||||||||||||||||
| Charge for litigation settlements, net |
— | (1 | ) | — | (74 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
212 | 108 | 532 | 271 | ||||||||||||||||||||
| Operating margin, as reported |
9.9 | % | 5.6 | % | 8.6 | % | 4.8 | % | ||||||||||||||||
| Rationalization charges - segment |
7 | 13 | 21 | 19 | ||||||||||||||||||||
| Accelerated depreciation - segment |
3 | 3 | 12 | 12 | ||||||||||||||||||||
| Rationalization charges - GCE |
— | 11 | 3 | 14 | ||||||||||||||||||||
| Accelerated depreciation - GCE |
— | — | — | — | ||||||||||||||||||||
| Gain from sales of fixed assets |
— | — | — | (5 | ) | |||||||||||||||||||
| Charge for litigation settlements, net |
— | 1 | — | 74 | ||||||||||||||||||||
| Impairment of goodwill and other intangible assets |
— | — | — | — | ||||||||||||||||||||
| Other Specialty Products - warranty |
— | 12 | — | 12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
222 | 148 | 568 | 397 | ||||||||||||||||||||
| Operating margin, as adjusted |
10.3 | % | 7.7 | % | 9.2 | % | 7.0 | % | ||||||||||||||||
| Depreciation and amortization - segment |
40 | 41 | 120 | 124 | ||||||||||||||||||||
| Depreciation and amortization - non-operating |
3 | 3 | 9 | 10 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 265 | $ | 192 | $ | 697 | $ | 531 | ||||||||||||||||
|
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|
|
|
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|
|
|
|||||||||||||||||
| * | Depreciation and amortization for the nine months ended September 30, 2013 reflects the reclassification of $4 million within Cost of Sales. |
MASCO CORPORATION
North American and International Data - Unaudited
For the Three Months and Nine Months Ended September 30, 2013 and 2012
(dollars in millions)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||
| 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||||
| North American |
||||||||||||||||||||||||
| Net sales |
$ | 1,756 | $ | 1,553 | 13 | % | $ | 5,031 | $ | 4,571 | 10 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
$ | 193 | $ | 112 | $ | 518 | $ | 325 | ||||||||||||||||
| Operating margin, as reported |
11.0 | % | 7.2 | % | 10.3 | % | 7.1 | % | ||||||||||||||||
| Rationalization charges |
7 | 9 | 14 | 15 | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
3 | 2 | 8 | 11 | ||||||||||||||||||||
| Impairment of goodwill and other intangible assets |
— | — | — | — | ||||||||||||||||||||
| Other - warranty |
— | 12 | — | 12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
203 | 135 | 540 | 363 | ||||||||||||||||||||
| Operating margin, as adjusted |
11.6 | % | 8.7 | % | 10.7 | % | 7.9 | % | ||||||||||||||||
| Depreciation and amortization |
30 | 32 | 90 | 96 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 233 | $ | 167 | $ | 630 | $ | 459 | ||||||||||||||||
|
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|
|
|
|
|
|
|
|||||||||||||||||
| International |
||||||||||||||||||||||||
| Net sales |
$ | 394 | $ | 360 | 9 | % | $ | 1,144 | $ | 1,093 | 5 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
$ | 50 | $ | 32 | $ | 118 | $ | 111 | ||||||||||||||||
| Operating margin, as reported |
12.7 | % | 8.9 | % | 10.3 | % | 10.2 | % | ||||||||||||||||
| Rationalization charges |
— | 4 | 7 | 4 | ||||||||||||||||||||
| Accelerated depreciation related to plant closures |
— | 1 | 4 | 1 | ||||||||||||||||||||
| Impairment of goodwill and other intangible assets |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
50 | 37 | 129 | 116 | ||||||||||||||||||||
| Operating margin, as adjusted |
12.7 | % | 10.3 | % | 11.3 | % | 10.6 | % | ||||||||||||||||
| Depreciation and amortization * |
10 | 9 | 30 | 28 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 60 | $ | 46 | $ | 159 | $ | 144 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
||||||||||||||||||||||||
| Net sales |
$ | 2,150 | $ | 1,913 | 12 | % | $ | 6,175 | $ | 5,664 | 9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported - segment |
$ | 243 | $ | 144 | $ | 636 | $ | 436 | ||||||||||||||||
| General corporate expense, net (GCE) |
(31 | ) | (35 | ) | (104 | ) | (96 | ) | ||||||||||||||||
| Gain from sales of fixed assets |
— | — | — | 5 | ||||||||||||||||||||
| Charge for litigation settlements, net |
— | (1 | ) | — | (74 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as reported |
212 | 108 | 532 | 271 | ||||||||||||||||||||
| Operating margin, as reported |
9.9 | % | 5.6 | % | 8.6 | % | 4.8 | % | ||||||||||||||||
| Rationalization charges - segment |
7 | 13 | 21 | 19 | ||||||||||||||||||||
| Accelerated depreciation - segment |
3 | 3 | 12 | 12 | ||||||||||||||||||||
| Rationalization charges - GCE |
— | 11 | 3 | 14 | ||||||||||||||||||||
| Accelerated depreciation - GCE |
— | — | — | — | ||||||||||||||||||||
| Gain from sales of fixed assets |
— | — | — | (5 | ) | |||||||||||||||||||
| Charge for litigation settlements, net |
— | 1 | — | 74 | ||||||||||||||||||||
| Impairment of goodwill and other intangible assets |
— | — | — | — | ||||||||||||||||||||
| Other - warranty |
— | 12 | — | 12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating profit, as adjusted |
222 | 148 | 568 | 397 | ||||||||||||||||||||
| Operating margin, as adjusted |
10.3 | % | 7.7 | % | 9.2 | % | 7.0 | % | ||||||||||||||||
| Depreciation and amortization - segment |
40 | 41 | 120 | 124 | ||||||||||||||||||||
| Depreciation and amortization - non-operating |
3 | 3 | 9 | 10 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA, as adjusted |
$ | 265 | $ | 192 | $ | 697 | $ | 531 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| * | Depreciation and amortization for the nine months ended September 30, 2013 reflects the reclassification of $4 million within Cost of Sales |