Masco logs a robust quarter

Masco Corporation had good things to say about its second quarter, which brought a 45% increase to its earnings per share.

The company also recorded its highest second quarter operating margin since 2002 -- from 14.5% to 16.7%.

“We continued our great start to 2016 with solid execution in the second quarter,” said Masco’s president and CEO, Keith Allman. “Our Plumbing segment in particular had an exceptional second quarter, with strong top- and bottom-line performance both in North America and internationally, and our Cabinetry segment continued to exceed expectations as it executed against its strategic plan to optimize sales mix and increase profitability. Additionally, we continued our disciplined capital allocation by reducing debt by $400 million, as planned, and returning nearly $120 million to shareholders through dividends and share repurchases during the quarter.”

Net sales increased 4% to $2.0 billion for the quarter, and net income came in at $150 million, up from $105 million in the year-ago quarter.

The Plumbing Products segment experienced a 9% jump in net sales, driven largely by growth in the retail and wholesale channels.

Other segments, like Decorative Architectural Products, Cabinetry Products and Windows and Other Specialty Products, largely broke even with each other.

“The fundamental demand drivers of our end markets remain robust,” said Allman. “Combined with these underlying fundamentals, our strong performance this quarter is evidence that we continue to successfully execute against our long-term growth strategies by leveraging our brand portfolio, our industry-leading positions and our Masco Operating System. Reflecting confidence in Masco’s future outlook, our Board of Directors intends to increase our annual dividend by $0.02 per share to $0.40 per share, beginning with the quarterly dividend to be paid in the fourth quarter of 2016.”