Masco's 3Q earnings take hit
By Furniture Today Staff -- Furniture Today, November 6, 2005
Taylor, Mich. — Special charges, partially offset by currency translation gains, hit home products giant Masco in the third quarter, and earnings per share dropped 19 cents to 61 cents.
Excluding earnings from discontinued operations, earnings per share for the comparable 2004 quarter were 64 cents.
Masco, which owns ready-to-assemble furniture makers d-Scan, Mill's Pride and Tvilum-Scanbirk, posted record sales of $3.4 billion in the latest quarter, up 5.9% over sales of $3.2 billion in 2004. Income from continuing operations decreased 9.3% to $262 million from $289 million in last year's third quarter. Including discontinued operations, net profits in the 2004 quarter were $359 million.
In the first nine months of 2005, Masco's sales jumped 7% to $9.7 billion from $9 billion in the year-earlier period. Net income, including the results of discontinued operations, slipped 2.7% to $767 million from $788 million in last year's nine months.
Excluding the results of discontinued operations, profits in the nine months were $748 million in 2005 and $824 million in 2004.
Taking into account higher energy costs, slipping consumer confidence and recent additional commodity cost increases, Masco said it expects earnings per share in the fourth quarter will be 48 cents to 52 cents, and full-year EPS will be $2.20 to $2.24, down from earlier guidance of $2.30.
The company's guidance excludes any additional costs associated with its profit improvement programs and any other unusual items.
| Masco Corp. | |||
|---|---|---|---|
| Owns d-Scan, Mill's Pride and Tvilum-Scanbirk | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 9/30 | 2005 | 2004 | Change |
| (a) Includes pretax income from a litigation settlement of $1 million in the 2005 quarter and $2 million in the 2004 quarter. The 2004 quarter also includes $70 million in net income from discontinued operations. (b) Based on average shares outstanding of 427 million in the 2005 quarter, 449 million in the 2004 quarter, 434 million in the 2005 nine months and 455 million in the 2004 nine months. (c) Includes pretax income from a litigation settlement of $6 million in the 2005 nine months and $30 million in the 2004 nine months. The 2005 nine months also includes $19 million in net income from discontinued operations and the 2004 nine months also includes a $36 million net loss from discontinued operations. |
|||
| Sales | $3,360,000,000 | $3,173,000,000 | 5.9% |
| Operating income | 468,000,000 | 489,000,000 | (4.3%) |
| Net income (a) | 262,000,000 | 359,000,000 | (27.0%) |
| Earnings per share (b) | 0.61 | 0.80 | (23.8%) |
| 9 months ended 9/30 | 2005 | 2004 | Change |
| Sales | $9,677,000,000 | $9,040,000,000 | 7.0% |
| Operating income | 1,279,000,000 | 1,325,000,000 | (3.5%) |
| Net income (c) | 767,000,000 | 788,000,000 | (2.7%) |
| Earnings per share (b) | 1.77 | 1.73 | 2.3% |
-
Masco profits surge 37.5% in 1st qtr.
May 22, 2005 -
Masco posts 9.4% 2Q sales increase
Aug 21, 2005 -
Masco 4Q sales increase 18.2%
Feb 29, 2004 -
Masco 1Q sales increase 19.3%
May 9, 2004 -
Masco sales, profits up in 4Q, yr.
Mar 13, 2005
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