Masco Corporation Releases Q3 2024 Results
US: In Q3 2024, Masco Corporation reported net sales holding steady at $1,983 million, with a 1% increase in local currency. The Plumbing Products segment saw a 2% rise in net sales (1% increase in local currency, excluding acquisitions), while Decorative Architectural Products’ sales dropped by 3% (1% decrease in local currency, excluding divestitures). North American sales remained consistent with last year, while international sales increased by 3%. Gross margin declined 100 basis points to 36.6%, and operating profit fell 7% to $357 million. Operating margin decreased by 140 basis points to 18.0%, and net income dropped to $0.77 per share from $1.10 per share.
Adjusted for specific items with a normalized 24.5% tax rate, Masco’s Q3 results were more positive. Gross margin improved by 90 basis points to 36.7%, while operating profit grew by 3% to $360 million, resulting in a 60-basis point increase in operating margin to 18.2%. Net income rose by 8% to $1.08 per share, compared to $1.00 per share in the previous year. Liquidity at the end of the quarter reached $1,646 million, including availability under the revolving credit facility.
“We delivered another quarter of strong operating results,” said Masco President and CEO, Keith Allman. “Our adjusted operating margin expanded 60 basis points to 18.2 percent, marking the sixth consecutive quarter of year-over-year margin expansion, and our adjusted earnings per share grew by 8 percent. Additionally, we executed on our capital allocation strategy by returning $255 million to shareholders though dividends and share repurchases.” “We remain focused on driving the full potential of our portfolio with our leading brands, innovative products, and exceptional customer service. For the remainder of the year, we expect market demand to remain challenged and now anticipate our 2024 adjusted earnings per share to be in the range of $4.05 to $4.15, compared to our previous expectation of $4.05 to $4.20,”.
Source: Masco