Masco cuts earnings guidance
The company estimates lower-than-expected housing starts, a large predictor of Masco’s sales of building materials....
Masco, parent of Behr paints and Delta Faucet, has cut its fiscal year earnings forecast to $1.55 to $1.65 per share. The company earlier predicted earnings of $1.60 to $1.70 per share.
Masco also said it expects even lower housing starts -- a large source of the company’s sales -- than earlier estimated, to 1.35 million from a July estimate of 1.4 million starts.
The company expects $70 million in pre-tax charges in the third quarter, related to plant start-up, severance, systems implementations and other initiatives.
Taylor, Mich.-based Masco makes a number of building materials for the new home construction market, including KraftMaid and Merillat cabinets; Brizo, Delta and Peerless faucets; Liberty Hardware and Arrow Fastener.
