-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EXn7mcZUin/PowruAZtckUR/DSunH7Gh7XxwVXlCmYRy8NMCUSRdbrN5uIM3e6CP 1I0qmUJyE0qA2Lh9ADejSA== 0000062996-97-000004.txt : 19970520 0000062996-97-000004.hdr.sgml : 19970520 ACCESSION NUMBER: 0000062996-97-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MASCO CORP /DE/ CENTRAL INDEX KEY: 0000062996 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD FURNITURE [2510] IRS NUMBER: 381794485 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05794 FILM NUMBER: 97606878 BUSINESS ADDRESS: STREET 1: 21001 VAN BORN RD CITY: TAYLOR STATE: MI ZIP: 48180 BUSINESS PHONE: 3132747400 MAIL ADDRESS: STREET 1: 21001 VAN BORN ROAD CITY: TAYLOR STATE: MI ZIP: 48180 FORMER COMPANY: FORMER CONFORMED NAME: MASCO SCREW PRODUCTS CO DATE OF NAME CHANGE: 19731025 10-Q 1 MASCO CORPORATION 1ST QUARTER 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended March 31, 1997. Commission File Number 1-5794 MASCO CORPORATION (Exact name of Registrant as specified in its Charter) Delaware 38-1794485 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 21001 Van Born Road, Taylor, Michigan 48180 (Address of principal executive offices) (Zip Code) (313) 274-7400 (Telephone Number) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. Shares Outstanding at Class May 1, 1997 Common stock, par value $1 per share 161,270,000 MASCO CORPORATION INDEX Page No. Part I. Financial Information Item 1. Financial Statements: Condensed Consolidated Balance Sheet - March 31, 1997 and December 31, 1996 1 Condensed Consolidated Statement of Income for the Three Months Ended March 31, 1997 and 1996 2 Condensed Consolidated Statement of Cash Flows for the Three Months Ended March 31, 1997 and 1996 3 Notes to Condensed Consolidated Financial Statements 4-7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8-10 Unaudited Information Regarding Equity Investments for the Three Months Ended March 31, 1997 and 1996 11 Part II. Other Information and Signature 12 MASCO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET March 31, 1997 and December 31, 1996 (Dollars in thousands) March 31, December 31, ASSETS 1997 1996 Current assets: Cash and cash investments $ 327,590 $ 473,730 Accounts and notes receivable, net 518,420 466,900 Prepaid expenses and other 91,370 77,200 Inventories: Raw material 181,360 185,500 Finished goods 146,930 135,190 Work in process 96,410 91,250 424,700 411,940 Total current assets 1,362,080 1,429,770 Receivable from MascoTech, Inc. 151,380 151,380 Equity investment in MascoTech, Inc. 16,550 10,150 Equity investments in other affiliates 65,560 57,680 Securities of Furnishings International Inc. 365,520 356,340 Property and equipment, net 939,060 940,590 Excess of cost over acquired net assets 472,100 457,350 Other noncurrent assets 311,880 298,390 Total assets $3,684,130 $3,701,650 LIABILITIES Current liabilities: Notes payable $ 6,600 $ 7,590 Accounts payable 128,860 149,500 Accrued liabilities 344,230 361,350 Total current liabilities 479,690 518,440 Long-term debt 1,216,170 1,236,320 Deferred income taxes and other 101,680 107,080 Total liabilities 1,797,540 1,861,840 SHAREHOLDERS' EQUITY Common stock, par value $1 per share Authorized shares: 400,000,000 161,240 160,870 Preferred stock, par value $1 per share Authorized shares: 1,000,000 --- --- Paid-in capital 150,140 140,010 Retained earnings 1,586,850 1,536,410 Cumulative translation adjustments (11,640) 2,520 Total shareholders' equity 1,886,590 1,839,810 Total liabilities and shareholders' equity $3,684,130 $3,701,650 See notes to condensed consolidated financial statements. 1 MASCO CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME For the Three Months Ended March 31, 1997 and 1996 (Amounts in thousands except per share data) Three Months Ended March 31 1997 1996 Net sales $854,000 $764,000 Cost of sales 539,500 480,330 Gross profit 314,500 283,670 Selling, general and administrative expenses 181,000 169,530 Amortization of excess of cost over acquired net assets 3,700 2,610 Operating profit 129,800 111,530 Other income (expense), net: Interest expense (18,500) (17,500) Re: MascoTech, Inc. Equity earnings 6,000 8,870 Interest income 2,500 --- Other, net 19,400 3,900 9,400 (4,730) Income before income taxes 139,200 106,800 Income taxes 55,700 44,800 Net income $ 83,500 $ 62,000 Per share data: Net income $.52 $.39 Cash dividends declared and paid $.20 $.19 Average shares outstanding 161,000 160,400 See notes to condensed consolidated financial statements. 2 MASCO CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 1997 and 1996 (Dollars in thousands) Three Months Ended March 31 1997 1996 CASH FLOWS FROM (FOR) OPERATING ACTIVITIES: Cash provided by continuing operations $ 87,420 $ 80,230 (Increase) in receivables (57,660) (49,840) Decrease in inventories 2,450 2,980 Decrease in prepaid expenses 8,450 6,090 (Decrease) in current liabilities (43,630) (18,500) Total cash from (for) operating activities of continuing operations (2,970) 20,960 CASH FLOWS FROM (FOR) INVESTING ACTIVITIES: Acquisition of companies (46,420) --- Capital expenditures (28,200) (25,200) 0ther, net (14,360) (7,230) Total cash (for) investing activities of continuing operations (88,980) (32,430) Discontinued operations, net --- 17,590 Total cash (for) investing activities (88,980) (14,840) CASH FLOWS FROM (FOR) FINANCING ACTIVITIES: Increase in debt 450 53,610 Payment of debt (22,570) (44,050) Cash dividends paid (32,070) (30,460) Total cash (for) financing activities of continuing operations (54,190) (20,900) CASH AND CASH INVESTMENTS: Decrease for the quarter (146,140) (14,780) At January 1 473,730 60,470 At March 31 $327,590 $ 45,690 See notes to condensed consolidated financial statements. 3 MASCO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS A. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to present fairly its financial position as at March 31, 1997 and the results of operations and changes in cash flows for the three months ended March 31, 1997 and 1996. The condensed consolidated balance sheet at December 31, 1996 was derived from audited financial statements. Earnings per share are calculated based on the weighted average common shares outstanding. Certain amounts for the prior year period have been reclassified to conform to the current year presentation. B. During the first quarter of 1997, the Company acquired Franklin Brass Manufacturing Company, a leading manufacturer of bath accessories and bath safety products and LaGard Inc., a leading manufacturer of electronic locks. The aggregate purchase price was approximately $55 million and included .2 million shares of Company common stock, with the balance in cash. The acquisitions were accounted for as purchase transactions. These companies had combined annual net sales in 1996 of approximately $60 million. C. The Company expects that Statement of Financial Accounting Standards No. 128 ("SFAS 128"), "Earnings Per Share," will not have a material impact on earnings per share when adopted at December 31, 1997. Although earlier application of SFAS 128 is not permitted, disclosure of the pro forma earnings per share amounts computed in accordance with SFAS 128 is permitted. Accordingly, pro forma basic and diluted earnings per share under SFAS 128 were $.53 and $.51 respectively, for the three months ended March 31, 1997. D. Other income (expense), net consists of the following, in thousands: Three Months Ended March 31 1997 1996 Interest expense $(18,500) $(17,500) Re: MascoTech, Inc.: Equity earnings 6,000 8,870 Interest income 2,500 --- Equity earnings, other 1,800 2,020 Income from cash and cash investments 4,300 640 Other interest income 9,900 1,140 Other, net 3,400 100 $ 9,400 $ (4,730) Equity earnings from MascoTech for the first quarter of 1997 reflect the Company's fourth quarter 1996 reduction in common equity ownership of MascoTech from 45 percent to 21 percent. Equity earnings from MascoTech for the first quarter of 1997 include an aggregate $2.3 million of unusual income related to an equity transaction of a MascoTech affiliate and gains from MascoTech's marketable securities portfolio. Included in 1996 equity earnings from MascoTech was approximately $5.0 million of unusual income related to a MascoTech accounting change. During the first quarter of 1997, the Company recognized interest income at 6.625% on the $151.4 million receivable balance due from MascoTech. Other interest income for the first quarter of 1997 includes $9.2 million of interest income from the 12% pay-in-kind junior debt securities (approximately $300 million) of Furnishings International Inc. 4 MASCO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) Note D - Concluded: Other, net for the first quarter of 1997 includes net gains aggregating $3.5 million from the sale of certain assets. E. The following presents the combined unaudited financial statements of the Company, MascoTech, Inc. and TriMas Corporation as one entity, with Masco Corporation as the parent company. Intercompany transactions have been eliminated. Amounts, except per share data, are in thousands. Combined Balance Sheet March 31, December 31, Assets 1997 1996 Current assets: Cash and cash investments $ 433,590 $ 599,020 Marketable securities 49,530 37,760 Accounts and notes receivable, net 766,650 674,530 Prepaid expenses and other 110,260 81,320 Deferred income taxes 38,850 53,670 Net current assets of businesses held for disposition --- 85,980 Inventories: Raw material 237,580 238,250 Finished goods 222,120 209,590 Work in process 133,130 125,950 592,830 573,790 Total current assets 1,991,710 2,106,070 Equity investments in affiliates 260,340 221,380 Securities of Furnishings International Inc. 365,520 356,340 Property and equipment, net 1,521,440 1,523,590 Excess of cost over acquired net assets 667,920 660,690 Net non-current assets of businesses held for disposition --- 22,850 0ther assets 434,910 415,280 Total assets $5,241,840 $5,306,200 Liabilities and Shareholders' Equity Current liabilities: Notes payable $ 9,620 $ 16,620 Accounts payable 228,610 241,420 Accrued liabilities 490,590 501,800 Total current liabilities 728,820 759,840 Long-term debt 1,830,280 2,020,400 Deferred income taxes and other 301,100 300,170 Other interests in combined affiliates 495,050 385,980 Equity of shareholders of Masco Corporation 1,886,590 1,839,810 Total liabilities and shareholders' equity $5,241,840 $5,306,200 5 MASCO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) Note E - Continued: Three Months Ended March 31 Combined Statement of Income 1997 1996 Net sales $1,245,300 $1,279,790 Costs and expenses, net: Cost of sales 821,960 887,220 Selling, general and administrative expenses 233,520 232,660 Charge on disposition of businesses, net --- 2,000 Other income (expense), net: Interest expense (27,540) (28,120) Other income, net 44,870 9,060 17,330 (19,060) 1,038,150 1,140,940 Income before income taxes, other interests and cumulative effect of an accounting change 207,150 138,850 Income taxes 87,700 58,670 Other interests in combined affiliates 35,950 21,260 Income before cumulative effect of an accounting change 83,500 58,920 Cumulative effect of an accounting change, net --- 3,080 Net income $ 83,500 $ 62,000 Earnings per share: Income before cumulative effect of an accounting change $.52 $.37 Cumulative effect of an accounting change, net -- .02 Earnings per share $.52 $.39 Cash dividends declared and paid per share $.20 $.19 Average shares outstanding 161,000 160,400 6 MASCO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (concluded) Note E - Concluded: Three Months Ended March 31 Combined Statement of Cash Flows 1997 1996 Cash Flows From (For) Operating Activities: Cash provided by continuing operations $ 140,030 $ 102,850 (Increase) in receivables (83,240) (78,050) (Increase) in inventories (3,830) (5,370) Decrease in prepaid expenses 8,450 9,130 (Decrease) in current liabilities (26,220) (11,640) Total cash from operating activities 35,190 16,920 Cash Flows From (For) Investing Activities: Capital expenditures (43,270) (43,050) Proceeds from sale of subsidiaries 76,560 129,180 Acquisitions, net of cash acquired (57,520) (4,470) Discontinued operations, net --- 17,590 Net assets held for disposition --- (760) Other, net (50,780) 17,870 Total cash from (for) investing activities (75,010) 116,360 Cash Flows From (For) Financing Activities: Increase in debt 17,230 54,330 Payment of debt (104,750) (190,040) Cash dividends paid (38,090) (35,680) Total cash (for) financing activities (125,610) (171,390) Cash and Cash Investments: Decrease for the period (165,430) (38,110) At January 1 599,020 169,240 At March 31 $ 433,590 $ 131,130 7 MASCO CORPORATION Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FIRST QUARTER 1997 VERSUS FIRST QUARTER 1996 SALES AND OPERATIONS Net sales for the three months ended March 31, 1997 increased 12 percent to $854 million from $764 million in the comparable period in 1996; excluding recent acquisitions, first quarter 1997 net sales increased six percent. The increase in net sales is principally due to increases in unit sales volume of faucets, cabinets and other kitchen and bath products. For the first quarter of 1997, sales of Kitchen and Bath Products increased 14 percent to $679 million from $596 million in the first quarter of 1996; excluding recent acquisitions, first quarter 1997 net sales for this segment increased eight percent. Sales of Other Specialty Products for the first quarter of 1997 were $175 million, representing a four percent increase over net sales of $168 million for the first quarter of 1996; excluding recent acquisitions, net sales for this segment decreased 1 percent for the first quarter of 1997 due principally to the negative effect of currency translation on sales from European operations included in this segment. Net sales from North American operations for the first quarter of 1997 increased eight percent to $713 million from $658 million for the comparable period in the prior year; excluding recent acquisitions, first quarter 1997 net sales from these operations increased seven percent. Net sales from European-based operations for the first quarter of 1997 increased 33 percent to $141 million from $106 million for the first quarter of 1996; excluding recent acquisitions, first quarter 1997 net sales from these operations decreased 1 percent. A stronger U.S. dollar, principally against the German Deutsche Mark, had a negative effect on the translation of European sales in the first quarter of 1997 as compared with the first quarter of 1996, lowering European net sales in the 1997 first quarter by approximately 9 percent. Cost of sales as a percentage of sales increased slightly to 63.2 percent for the first quarter of 1997 from 62.9 percent for the comparable period in 1996. Excluding amortization of excess of cost over acquired net assets ($3.7 million and $2.6 million for the first quarters of 1997 and 1996, respectively), selling, general and administrative expenses as a percentage of sales for the first quarter of 1997 decreased to 21.2 percent from 22.2 percent in the comparable period in 1996. The decrease in the selling, general and administrative expenses percentage in 1997 results largely from the Company's cost-control initiatives and the leveraging of fixed and semi-fixed costs over a higher sales base. The Company's operating profit margins improved in the first quarter of 1997 as compared with the first quarter of 1996 principally due to the reduction in selling, general and administrative expenses as a percentage of sales. 8 MASCO CORPORATION Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FIRST QUARTER 1997 VERSUS FIRST QUARTER 1996 (continued) OTHER INCOME (EXPENSE), NET Included in other income (expense), net for the three months ended March 31, 1997 are equity earnings from MascoTech, Inc. of $6.0 million as compared with equity earnings from MascoTech of $8.9 million in the comparable period of 1996. Equity earnings from MascoTech for the first quarter of 1997 reflect the Company's fourth quarter 1996 reduction in common equity ownership of MascoTech from 45 percent to 21 percent. Excluding the Company's equity share of MascoTech's unusual income items in the first quarters of 1997 and 1996, equity earnings from MascoTech for the first quarters of 1997 and 1996 were $3.7 million and $3.9 million, respectively. Equity earnings from MascoTech for the first quarter of 1997 include an aggregate $2.3 million of unusual income related to an equity transaction of a MascoTech affiliate and gains from MascoTech's marketable securities portfolio. Included in first quarter 1996 equity earnings from MascoTech was approximately $5.0 million of unusual income related to a MascoTech accounting change. Included in other income (expense), net for the three months ended March 31, 1997 is $2.5 million of interest income from the $151.4 million receivable balance due from MascoTech. Included in other income (expense), net for the three months ended March 31, 1997 is $9.2 million of interest income from approximately $300 million of pay-in-kind junior debt securities of Furnishings International Inc., and net gains aggregating $3.5 million from the sale of certain assets. Also included in other income (expense), net for the first quarter of 1997 is income from cash and cash investments of $4.3 million as compared with $.6 million for the first quarter of 1996; the increase in income from cash and cash investments resulted from a higher average cash and cash investments balance during the first quarter of 1997 as compared with the first quarter of 1996. NET INCOME AND EARNINGS PER SHARE Net income for the first quarter of 1997 increased 35.0 percent to $83.5 million from $62.0 million in the comparable period of 1996, and earnings per share increased 33.0 percent to $.52 from $.39, principally for the reasons discussed above. The Company's effective tax rate was 40.0 percent for the first quarter of 1997 as compared with 41.9 percent for the comparable period in 1996. The Company estimates that its effective tax rate for 1997 will approximate 40.0 percent; such estimate includes the anticipation of lower tax related to foreign earnings in 1997 and the anticipated utilization of a portion of capital loss carryforward benefits, which resulted from the sale of the Company's home furnishings businesses. OTHER FINANCIAL INFORMATION At March 31, 1997 current assets were 2.8 times current liabilities. For the three months ended March 31, 1997, cash of $3.0 million was used for operating activities. Cash used for investing activities was $88.9 million, including $46.4 million for the acquisition of companies, $28.2 million for capital expenditures and $14.3 million for other cash outflows. Cash used for financing activities was $54.2 million, including $22.1 million for the net payment of debt and $32.1 million for cash dividends paid. The aggregate of the preceding items represents a net cash outflow of $146.1 million. 9 MASCO CORPORATION Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FIRST QUARTER 1997 VERSUS FIRST QUARTER 1996 (concluded) OTHER FINANCIAL INFORMATION (Continued) First quarter 1997 cash from operations was affected by an expected and recurring first quarter increase in accounts receivable. As the annual increase in accounts receivable is historically experienced in the first quarter, cash from operations in the remaining three quarters of 1997 are not expected to be affected by significant increases in accounts receivable. The Company has on file with the Securities and Exchange Commission, an unallocated shelf registration pursuant to which the Company is able to issue up to a combined $759 million of debt and equity securities. The Company believes that its present cash balance, its cash flows from operations and, to the extent necessary, future financial market activities and bank borrowings, are sufficient to fund its working capital and other investment needs. The Company expects that Statement of Financial Accounting Standards No. 128 ("SFAS 128"), "Earnings Per Share," will not have a material impact on earnings per share when adopted at December 31, 1997. 10 UNAUDITED INFORMATION REGARDING EQUITY INVESTMENTS FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996 Equity investments in affiliates consist primarily of the following approximate common stock and partnership interests at March 31: 1997 1996 MascoTech, Inc. 21% 45% Hans Grohe, a German partnership 27% 27% TriMas Corporation 4% 5% The Company has an approximate 17 percent voting interest in MascoTech at March 31, 1997, after including the voting interests of the preferred stockholders of MascoTech. The following presents condensed financial data of MascoTech, Inc. Amounts are in thousands. Three Months Ended March 31 1997 1996 Sales - Net $233,440 $373,920 Gross Profit $ 56,300 $ 61,440 Net Income (After Preferred Stock Dividends) $ 29,420 $ 19,200 11 PART II. OTHER INFORMATION MASCO CORPORATION Items 1, 3, 4 & 5 are not applicable. Item 2. Changes in Securities (a) Not applicable. (b) Not applicable. (c) During the first quarter of 1997 the Company issued 240,100 shares of common stock in connection with the acquisition of LaGard Inc., a leading manufacturer of electronic locks. The shares were issued to the shareholders of LaGard Inc. in a transaction that did not involve a public offering and the issuance was therefore exempt under Section 4(2) of the Securities Act. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: 11 - Computation of Earnings Per Share 12 - Computation of Ratio of Earnings to Fixed Charges 27 - Financial Data Schedule (b) Reports on Form 8-K: None SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MASCO CORPORATION (Registrant) Date: May 14, 1997 By: /s/ Richard G. Mosteller Richard G. Mosteller Senior Vice-President - Finance (Chief Financial Officer and Authorized Signatory) 12 MASCO CORPORATION EXHIBIT INDEX Exhibit Exhibit 11 Computation of Earnings Per Share Exhibit 12 Computation of Ratio of Earnings to Fixed Charges Exhibit 27 Financial Data Schedule EX-11 2 MASCO CORPORATION 1ST QUARTER 10-Q EXHIBIT 11 Exhibit 11 MASCO CORPORATION AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE Primary and Fully Diluted Earnings Per Share For the Three Months Ended March 31, 1997 and 1996 (Amounts in thousands except per share amounts) Three Months Ended March 31 1997 1996 Shares for computation of primary and fully diluted earnings per share: Weighted average number of shares outstanding 161,000 160,400 Common stock equivalents: Shares issuable assuming conversion of debentures 4,200 4,200 Stock options 1,100 800 Total shares for primary and fully diluted earnings per share computation 166,300 165,400 Net income, adjusted to basis of earnings per share: Net income $83,500 $62,000 Add back debenture interest, net 1,500 1,500 $85,000 $63,500 Primary and fully diluted earnings per share $.51 $.38 Earnings per share as reported $.52 $.39 This calculation is submitted in accordance with Regulation S-K Item 601(b)(11), although not required by APB Opinion No. 15, inasmuch as dilution for either period was less than three percent. EX-12 3 MASCO CORPORATION 1ST QUARTER 10-Q EXHIBIT 12 Exhibit 12 MASCO CORPORATION AND CONSOLIDATED SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges
(Thousands of Dollars) Three Months Ended March 31, Year Ended December 31, 1997 1996 1995 1994 1993 1992 Earnings Before Income Taxes and Fixed Charges: Income from continuing operations before income taxes $139,200 $502,700 $351,790 $292,830 $349,190 $296,020 Deduct/add equity in undistributed (earnings)/ loss of equity affiliates (6,530) (12,310) (17,770) 106,200 (13,750) (13,210) Add interest on indebtedness, net 18,590 74,790 73,400 60,360 62,860 57,190 Add amortization of debt expense 320 1,400 1,930 2,220 2,650 2,710 Add estimated interest factor for rentals 1,620 6,150 4,970 4,220 3,190 3,290 Earnings from continuing operations before income taxes and fixed charges $153,200 $572,730 $414,320 $465,830 $404,140 $346,000 Fixed Charges: Interest on indebtedness regarding continuing operations $ 19,170 $ 77,250 $ 76,460 $ 63,220 $ 63,600 $ 69,890 Amortization of debt expense 320 1,400 1,930 2,220 2,650 2,710 Estimated interest factor for rentals 1,620 6,150 4,970 4,220 3,190 3,290 $ 21,110 $ 84,800 $ 83,360 $ 69,660 $ 69,440 $ 75,890 Ratio of earnings to fixed charges 7.3 6.8 5.0 6.7 5.8 4.6
EX-27 4 MASCO CORPORATION 1ST QUARTER 10-Q EXHIBIT 27
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MASCO CORPORATION'S MARCH 31, 1997 FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1997 JAN-1-1997 MAR-31-1997 327,590 0 518,420 0 424,700 1,362,080 939,060 0 3,684,130 479,690 1,216,170 0 0 161,240 1,725,350 3,684,130 854,000 854,000 539,500 539,500 0 0 18,500 139,200 55,700 83,500 0 0 0 83,500 .52 .51 Receivables and property and equipment are presented net of allowances for doubtful accounts and accumulated depreciation and amortization, respectively.
-----END PRIVACY-ENHANCED MESSAGE-----