Masco Q1 sales slip

Livonia, Mich.-based Masco, the manufacturer of a stable of big-name home improvement brands including Behr paint and Delta faucets, posted first quarter sales of $1.979 billion, down 10 percent from the same quarter a year ago.

Net sales for plumbing products and decorative architectural products both decreased 10 percent.

Headwinds for the company during the quarter included softening demand, persistent inflation and tighter consumer spending said Masco President and CEO Keith Allman.

Allman pointed also to an improved adjusted gross margin by 150 basis points with pricing actions and operational improvements offsetting lower volume.

The company also returned $121 million to shareholders through dividends and share repurchases during the quarter, “showcasing the company’s strong financial position,” he said.

The company also announced an executive move, as David Chaika was appointed interim CFO.

He was named vice president, treasurer and investor relations in May 2016.

Prior to 2016, he held roles in the treasury and corporate development groups. Prior to joining Masco, Chaika was a vice president in the commercial banking industry and an officer in the U.S. Navy. He earned his MBA from the University of Chicago and a Bachelor of Business degree from the University of Michigan.

# # #

What the CEO said: “While the headwinds we discussed last quarter continue, including softening demand trends, persistent inflation and tighter consumer spending, we have moved quickly to adjust our costs and successfully mitigated margin impact in the first quarter,” said CEO Keith Allman. 

Bottom Line: Net income of $205 million in the quarter is down from $233 million in the first quarter last year.

For more information: See the company’s quarterly earnings release here.