Masco reports portfolio-wide growth in Q1

Masco Corporation reported portfolio-wide and operating profit growth in the first quarter, resulting in a modest net sales bump.

“Our strong operating performance continued in the first quarter of 2017 as our leading brands coupled with our innovative products and programs drove demand with consumers and pros alike, resulting in profitable growth across our portfolio,” said Masco president and CEO Keith Allman. “Additionally, we returned over $120 million to shareholders through dividends and share repurchases in the quarter.”

Net sales jumped 3% to $1.8 billion during the quarter, which translated to a 4% bump in North American sales and 5% in international sales in local currency.

Net income was $0.43 per common share compared to $0.32 per common share, or $140 million compared to $109 million.

Segment-wise, Plumbing Products saw a 6% net sales increase, while Decorative Architectural Products increased 2%.

Cabinetry Products’ net sales decreased 2%, and Windows and Other Specialty Products’ net sales were flat.

“The building products industry fundamentals remain favorable and are expected to support long-term growth. Our outlook for demand in both repair and remodel and new home construction continues to be positive,” said Allman.

“We will leverage these favorable industry fundamentals along with our strong brand portfolio, our industry-leading positions and our Masco Operating System to achieve our long-term growth expectations. As such, we are now updating our 2017 earnings per share target to the range of $1.90 to $2.00 per common share, exceeding our $1.80 target that we communicated at our last Investor Day in 2015. This updated target includes an estimated $0.06 benefit from a reduction in our expected tax rate."