Masco posts 13.1% sales gain in 2Q
By Furniture Today Staff -- Furniture Today, August 12, 2002
Taylor, Mich. — Home improvement products are still selling well for Masco, which posted a 12.1% gain in sales and a healthy increase in profits in the second quarter.
The company said it earned $214.3 million in the quarter on $2.3 billion in sales. Earnings were up 54.2% from the reported figure from last year's second quarter, and up about 35% when last year's number is stated on a comparable basis under current accounting rules, said Richard Manoogian, chairman and chief executive officer.
Cabinets and related product sales, which includes ready-to-assemble furniture producers Mill's Pride, Tvilum-Scanbirk and d-Scan, were up 10%. Tvilum-Scanbirk, which includes d-Scan, posted a "nice increase" in the first half, but there was "a relatively soft RTA market at retail for some of the Mill's Pride products," Manoogian said.
For all products, including Masco's big Delta faucet business, sales excluding acquisitions grew 8% in the quarter, evidence the company is gaining market share, he said. Combined sales to key retailers Home Depot, Lowe's and Wal-Mart were up about 11%.
Operating profit margins improved, aided by a better product mix and cost controls, Manoogian added.
| Quarter ended 6/30 | 2002 | 2001 | Change |
|---|---|---|---|
| Sales | $2,314,000,000 | $2,064,000,000 | 12.1% |
| Operating income | 395,100,000 | 295,620,000 | 33.7% |
| Net income | 214,300,000 | 139,000,000 | 54.2% |
| Earnings per share (a) | 0.43 | 0.30 | 43.3% |
| 6 months ended 6/30 | 2002 | 2001 | Change |
| Sales | $4,414,000,000 | $3,960,000,000 | 11.5% |
| Operating income | 685,700,000 | 531,020,000 | 29.1% |
| Net income | (b)272,100,000 | 254,000,000 | 7.1% |
| Earnings per share (a) | 0.55 | 0.55 | 0.0% |
| (a) Based on average shares outstanding of 498 million in the 2002 quarter, 492 million in the 2002 six months and 463 million in the 2001 periods. (b) Includes a $92.4 million extraordinary charge, the cumulative effect of an accounting change. | |||
