Masco's good Q4 rides on strength of plumbing products
Masco Corporation reported 3% sales growth during both the fourth quarter and full fiscal year, with what it deemed another "record" quarter for Plumbing Products.
Net sales for the three-month period increased to $1.8 billion, while gross margin improved to 32.6% from 31.0%.
Net income of $98 million was up considerably over the previous year's $75 million.
Segment-wise, Plumbing Products saw a 5% sales increase, as did Decorative Architectural Products.
Cabinetry Products’ net sales decreased 8% due to the exit of lower margin business in the direct-to-builder channel, and Windows and Other Specialty Products’ net sales decreased 2% due to the impact of foreign currency translation.
“We finished the year with good fourth quarter results,” said Keith Allman, Masco’s president and CEO. “Our Plumbing Products segment had another record quarter on both the top and bottom lines, demonstrating the strength of our brands and our innovative products. Our Decorative Architectural Products segment posted solid 5 percent growth in the quarter, and we executed our planned investment to drive future profitable growth. Our Cabinetry Products segment continued its strategy of exiting certain direct-to-builder business, introducing new products, and driving growth with our market-leading Merillat and KraftMaid brands. We began to see improvements in the operations of our U.S. window business, and we continued our disciplined capital allocation by returning approximately $240 million to shareholders through share repurchases and dividends during the quarter.”
For the full fiscal year, net sales were up 3% to $7.4 billion, with net income of $491 million up from $355 million in 2015.
“Masco delivered another strong year in 2016,” said Allman. “We continued to execute against our long-term growth and capital allocation strategies that we established in 2015. We demonstrated our ability to capitalize on improving end markets by driving sales growth and expanding our operating margin."