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MascoS Positive Momentum Continues In The Third Quarter Key Highlights

The following excerpt is from the company's SEC filing.

Sales increased 4 percent excluding the effects of foreign currency translation

North American sales increased 3 percent; International sales increased 4 percent in local currency

Adjusted operating profit increased 16 percent to $257 million

Adjusted operating margins increased 190 bps to 14 percent

Adjusted EPS increased 26 percent to $.34 per common share

TAYLOR, Mich. (Oct. 27, 2015)

Masco Corporation (NYSE: MAS), one of the worlds leading manufacturers of branded home improvement and building products, reported operating profit growth and flat net sales in the third quarter of 2015. Adjusted operating margins expanded to 14 percent, representing a 190 basis point increase over prior year.

We are pleased with our third quarter financial performance and operating results, said Mascos President and CEO Keith Allman. Our innovative products and programs, increased investment in our brands and consistent execution of our strategies drove our strong earnings performance. Furthermore, we reaffirmed our commitment to disciplined capital allocation by returning over $230 million to shareholders through dividends and share repurchases in the third quarter of 2015.

2015 Third Quarter Commentary

Net sales from continuing operations were flat at $1.8 billion. North American sales increased 3 percent and international sales decreased 9 percent in U.S. dollars but increased 4 percent in local currency

Compared to third quarter 2014, results for key financial measures,

as adjusted

for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, were as follows:

Gross margins improved to 31.9 percent compared to 30.0 percent

Operating margins improved to 14 percent compared to 12.1 percent

Income from continuing operations was $.34 per common share compared to $.27 per common share

Income from continuing operations,

as reported,

was $.32 per common share

Liquidity at the end of the third quarter was approximately $1.5 billion

Approximately 7.6 million shares were repurchased in the third quarter

2015 Third Quarter Operating Segment Highlights

Plumbing Products net sales were flat, but increased 6 percent excluding the effects of foreign currency translation, fueled by continued strength in the wholesale and retail channels as well as international markets

Decorative Architectural Products net sales increased 1 percent, driven by pro paint sales and newly introduced products and programs, and partially offset by the timing and amount of paint promotions

Cabinets and Related Products net sales decreased 5 percent, driven by the deliberate exit of low margin builder business, and partially offset by KraftMaid

cabinetrys sales growth with home centers and dealers

Other Specialty Products net sales increased 8 percent, led by Milgards strong performance across all channels and price points


As we move into the last quarter of the year, we believe we will continue to see steady demand for our market-leading products as both repair and remodel demand and new home construction continue to improve, said Mr. Allman. We are confident in our ability to execute against this macro-economic backdrop by remaining focused on driving shareholder value through our industry-leading branded building products, operational excellence and disciplined capital allocation.

About Masco

Headquartered in Taylor, Mich., Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr

paint; Delta

and Hansgrohe

faucets, bath and shower fixtures; KraftMaid

and Merillat

cabinets; Milgard

windows and...