8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported) October 25, 2010

Masco Corporation

(Exact name of Registrant as Specified in Charter)

Delaware	1-5794	38-1794485
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

21001 Van Born Road, Taylor, Michigan	48180
(Address of Principal Executive Offices)	(Zip Code)

(313) 274-7400

Registrant’s telephone number, including area code

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EX-99

Item 2.02. Results of Operations and Financial Condition.

     Attached and incorporated herein by reference as Exhibit 99 is a copy of a press release dated October 25, 2010 reporting Masco Corporation’s financial results for the third quarter of 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the third quarter 2010. On October 26, 2010, Masco Corporation will hold an investor conference call and web cast to discuss financial results for the third quarter 2010.

     This information, including the Exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.

Item 9.01. Financial Statements and Exhibits.

     (d) Exhibits.

99 Press Release of Masco Corporation dated October 25, 2010 reporting Masco Corporation’s financial results for the third quarter 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the third quarter 2010.

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
By:	/s/ John G. Sznewajs
	Name:	John G. Sznewajs
	Title:	Vice President, Treasurer and Chief Financial Officer

October 25, 2010

EXHIBIT INDEX

99 Press Release of Masco Corporation dated October 25, 2010 reporting Masco Corporation’s financial results for the third quarter 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the third quarter 2010.

EX-99

FOR IMMEDIATE RELEASE

Investor / Media Contact
Maria Duey
Vice President — Investor Relations and Communications
313.792.5500
maria_duey@mascohq.com

MASCO CORPORATION REPORTS THIRD QUARTER RESULTS

     2010 Third Quarter Commentary

• Sales decreased six percent to $2.0 billion.

• Excluding charges for business rationalizations and litigation, and with a normalized tax rate of 36 percent, our key financial measures were as follows, compared to the third quarter of 2009:

• Gross profit margins were 26.9 percent compared to 27.7 percent

• Operating profit margins were 7.2 percent compared to 8.0 percent

• Income, as adjusted, would have been $.11 per common share, compared to $.18 per common share.

• (Loss) income from continuing operations, as reported, was $(.02) per common share compared to $.14 per common share in the third quarter of 2009.

• Working capital, as a percent of sales, improved to 16.2 percent at September 30, 2010 compared to 17.3 percent at September 30, 2009.

• Cash was $1.5 billion at September 30, 2010.

Taylor, Mich., (October 25, 2010) — Masco Corporation (NYSE: MAS) today reported that net sales from continuing operations for the quarter ended September 30, 2010 decreased six percent to $2.0 billion. North American sales and International sales each decreased six percent. In local currencies, International sales increased four percent compared with the third quarter of 2009.

“The slowing economic activity related to our markets, particularly consumer spending and new home construction in North America that we experienced late in the second quarter, continued into the third quarter of 2010. Four of our five product segments had sales declines compared to the third quarter of 2009. Our plumbing products segment was up modestly in sales, principally due to continued strong international results, as Hansgrohe continues to expand globally. Given the decline in sales, we were pleased with our performance from a profitability standpoint, as cost reductions partially offset the impact of volume declines and a less favorable relationship between selling prices and commodity costs compared to third quarter 2009,” said Masco’s CEO Tim Wadhams.

(Loss) income from continuing operations, as reported, was $(.02) per common share in the third quarter of 2010 compared to $.14 per common share in the third quarter of 2009.

1

We continue to focus on the rationalization of our businesses, including business consolidations, plant closures, headcount reductions, system implementations and other initiatives. During the third quarters of 2010 and 2009, we incurred costs and charges of $39 million pre-tax ($.07 per common share, after tax) and $21 million pre-tax ($.04 per common share, after tax), respectively, related to these initiatives.

Outlook 2010

Although we continue to be concerned about foreclosure activity and access to financing, we believe that housing starts will improve in 2010 from 554,000 units in 2009 and continue to believe that total starts will be in a range of 575,000 to 625,000 units. In addition, we anticipate that expenditures on repair and remodel activity will be challenged in the near-term, and that big-ticket items will continue to be deferred until general economic conditions, unemployment, consumer confidence, credit availability and home prices improve.

“We are confident that the long-term fundamentals for the new home construction and home improvement markets continue to be positive. However, it appears that the recovery in certain of our markets will be slower than previously anticipated. Given that, we will continue our intense focus on the things that we can control including driving the Masco Business System and aggressively managing our cost structure. We thank and appreciate our employees, world-wide, for their continued focus and dedication as we continue to address the challenging economic environment,” said Tim Wadhams.

We believe that our strong financial position, together with our current strategy of investing in leadership brands (including: KraftMaid and Merillat cabinets, Delta and Hansgrohe faucets, Behr paint and Milgard windows), our continued focus on innovation and our commitment to lean principles will allow us to drive long-term growth and create value for our shareholders.

Headquartered in Taylor, Michigan, Masco Corporation is one of the world’s leading manufacturers of home improvement and building products, as well as a leading provider of services that include the installation of insulation and other building products.

The 2010 third quarter supplemental material, including a presentation in PDF format, will be distributed after the market closes on October 25, 2010 and will be available on the Company’s Web site at www.masco.com.

A conference call regarding items contained in this release is scheduled for Tuesday, October 26, 2010 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing (913) 312-0395 (confirmation #6154441). The conference call will be webcast simultaneously on the Company’s Web site at www.masco.com and supplemental material, including the financial data referred to on

2

the call and a reconciliation of non-GAAP information provided on the call, will also be available on the Web site. A replay of the call will be available on Masco’s Web site or by phone by dialing (719) 457-0820 (replay access code #6154441) approximately two hours after the end of the call and will continue through November 2, 2010.

Masco Corporation’s press releases and other information are available through the Company’s toll free number, 1-888-MAS-NEWS, or under the Investor Relations section of Masco’s Web site at www.masco.com.

# # #

Statements contained herein, or otherwise made available, that reflect the Company’s views about its future performance may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These views involve risks and uncertainties that are difficult to predict and the Company’s results may differ materially from the results discussed in such forward-looking statements. For further information, refer to our most recent Annual Report on Form 10-K (particularly the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections) and to any subsequent Quarterly Reports on Form 10-Q, all of which are on file with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Certain of the financial and statistical data made available are non-GAAP financial measures as defined by the SEC’s Regulation G. The Company believes that such non-GAAP performance measures and ratios used in managing the business may provide users with meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States. See the exhibit that is included as part of this earnings release for a reconciliation of the non-GAAP performance measures contained herein. Additional information about the Company is contained in the Company’s filings with the SEC and is available on Masco’s Web site.

3

MASCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
For the Three Months and Nine Months Ended September 30, 2010 and 2009
(In Millions, Except Per Common Share Data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Net sales	$	1,957		$	2,084		$	5,857		$	5,894
Cost of sales		1,463			1,517			4,325			4,371
Gross profit		494			567			1,532			1,523
Selling, general and administrative expenses		392			429			1,233			1,263
Charge for defined-benefit plan curtailment		—			—			—			8
Operating profit		102			138			299			252
Other income (expense), net		(64	)		(49	)		(223	)		(157	)
Income from continuing operations before income taxes		38			89			76			95
Income tax expense		31			26			53			35
Income from continuing operations		7			63			23			60
Loss from discontinued operations, net		—			(23	)		—			(31	)
Net income		7			40			23			29
Less: Net income attributable to non-controlling interest		12			12			32			27
Net (loss) income attributable to Masco Corporation	$	(5	)	$	28		$	(9	)	$	2
(Loss) earnings per common share attributable to Masco Corporation (diluted):
(Loss) income from continuing operations	$	(0.02	)	$	0.14		$	(0.03	)	$	0.09
Loss from discontinued operations, net		—			(0.06	)		—			(0.09	)
Net (loss) income attributable to Masco Corporation	$	(0.02	)	$	0.08		$	(0.03	)	$	0.00
Average diluted common shares outstanding		349			351			349			351
Amounts attributable to Masco Corporation:
(Loss) income from continuing operations	$	(5	)	$	51		$	(9	)	$	33
Loss from discontinued operations, net		—			(23	)		—			(31	)
Net (loss) income attributable to Masco Corporation	$	(5	)	$	28		$	(9	)	$	2

Page 1

MASCO CORPORATION
Gross Profit Margin and Operating Profit Margin Reconciliation
For the Three Months Ended September 30, 2010 and 2009
(In Millions, Except Per Common Share Data)

	Three Months Ended
	September 30,
	2010			2009
Sales	$	1,957		$	2,084
Gross profit, as reported	$	494		$	567
Rationalization charges		32			10
Gross profit, as adjusted	$	526		$	577
Gross margin, as reported		25.2	%		27.2	%
Gross margin, as adjusted		26.9	%		27.7	%
Operating profit, as reported	$	102		$	138
Rationalization charges		39			21
Litigation charge		—			7
Operating profit, as adjusted	$	141		$	166
Operating margin, as reported		5.2	%		6.6	%
Operating margin, as adjusted		7.2	%		8.0	%

The Company believes that certain non-GAAP performance measures and ratios, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.

Exhibit Page 2

MASCO CORPORATION
EPS Reconciliation
For the Three Months Ended September 30, 2010 and 2009
(In Millions, Except Per Common Share Data)

	Three Months Ended
	September 30,
	2010			2009
Income from continuing operations before income taxes — as reported	$	38		$	89
Rationalization charges		39			21
One-time corporate charges		—			—
Litigation charge		—			7
Income from continuing operations before income taxes — as adjusted		77			117
Tax at 36% rate		(28	)		(42	)
Less: Net income attributable to non-controlling interest		(12	)		(12	)
Net Income — as adjusted	$	37		$	63
Earnings per common share — as adjusted	$	0.11		$	0.18
Shares outstanding		349			351

The Company believes that certain non-GAAP performance measures and ratios, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.

Exhibit Page 3

Masco Corporation
Key Financial Data As Reported — Unaudited
Q3 — 2010 and 2009
(In Millions, Except Earnings Per Share)

Sales & Earnings	9/30/2010			9/30/2009			Change
Net Sales	$	1,957		$	2,084			-6	%
Operating Profit	$	102		$	138			N/A
Operating Profit % of Net Sales		5.2	%		6.6	%	(140		) bps
Other Income (Expense), Net	$	(64	)	$	(49	)	$	(15	)
Income Tax Expense	$	31		$	26			N/A
(Loss) Income From Continuing Operations Attributable to Masco Corporation	$	(5	)	$	28			N/A
Diluted EPS from Continuing Operations	$	(0.02	)	$	0.14			N/A

Operating Expenses	9/30/2010			9/30/2009			Change
Cost of Sales	$	1,463		$	1,517		$	(54	)
Gross Margin		25.2	%		27.2	%	(200		) bps
SG&A Expenses (Including GCE)	$	392		$	429		$	(37	)
SG&A as a % of net sales		20.0	%		20.6	%	60		bps
General Corporate Expense (GCE)	$	27		$	36		$	(9	)
General Corp Expense as a % of net sales		1.4	%		1.7	%	30		bps

Business Segments	9/30/2010			9/30/2009			Change
Cabinets and Related Products:
Net Sales	$	357		$	434			-18	%
Operating (Loss)	$	(61	)	$	(16	)		N/A
Operating (Loss) % of Net Sales		-17.1	%		-3.7	%	(1,340		) bps
Plumbing Products:
Net Sales	$	686		$	678			1	%
Operating Profit	$	97		$	93			N/A
Operating Profit % of Net Sales		14.1	%		13.7	%	40		bps
Installation and Other Services:
Net Sales	$	292		$	332			-12	%
Operating (Loss)	$	(22	)	$	(34	)		N/A
Operating (Loss) % of Net Sales		-7.5	%		-10.2	%	270		bps
Decorative Architectural Products:
Net Sales	$	463		$	474			-2	%
Operating Profit	$	104		$	122			N/A
Operating Profit % of Net Sales		22.5	%		25.7	%	(320		) bps
Other Specialty Products:
Net Sales	$	159		$	166			-4	%
Operating Profit	$	11		$	16			N/A
Operating Profit % of Net Sales		6.9	%		9.6	%	(270		) bps
Total Segment Reported:
Net Sales	$	1,957		$	2,084			-6	%
Operating Profit	$	129		$	181			N/A
Operating Profit % of Net Sales		6.6	%		8.7	%	(210		) bps
Change in Key Retailer Sales		-4	%		-4	%

Page 4

Masco Corporation
Key Financial Data As Reported — Unaudited
Q3 — 2010 and 2009
(In Millions, Except Earnings Per Share)

Business Regions	9/30/2010			9/30/2009			Change
North America
Net Sales	$	1,528		$	1,630			-6	%
Operating Profit	$	79		$	123			N/A
Operating Profit % of Net Sales		5.2	%		7.5	%	(230		) bps
International, principally Europe
Net Sales	$	429		$	454			-6	%
Operating Profit	$	50		$	58			N/A
Operating Profit % of Net Sales		11.7	%		12.8	%	(110		) bps

Other	9/30/2010		9/30/2009
Dividend Payments	$	27	$	27
Cash Paid for Share Repurchases	$	—	$	—
Common Shares Repurchased		—		—
CAPEX	$	26	$	20
Depreciation and Amortization	$	72	$	62
Average diluted common shares outstanding		349		351

Page 5

Masco Corporation
Key Financial Data As Reported — Unaudited
Year-to-Date September 30, 2010 and 2009
(In Millions, Except Earnings Per Share and Working Capital Days)

Sales & Earnings	9/30/2010			9/30/2009			Change
Net Sales	$	5,857		$	5,894			-1	%
Operating Profit	$	299		$	252			N/A
Operating Profit % of Net Sales		5.1	%		4.3	%	80		bps
Other Income (Expense), Net	$	(223	)	$	(157	)	$	(66	)
Income Tax Expense	$	53		$	35			N/A
(Loss) Income From Continuing Operations
Attributable to Masco Corporation	$	(9	)	$	2			N/A
Diluted EPS from Continuing Operations	$	(0.03	)	$	0.09			N/A

Operating Expenses	9/30/2010			9/30/2009			Change
Cost of Sales	$	4,325		$	4,371		$	(46	)
Gross Margin		26.2	%		25.8	%	40		bps
SG&A Expenses (Including GCE)	$	1,233		$	1,263		$	(30	)
SG&A as a % of net sales		21.1	%		21.4	%	30		bps
General Corporate Expense (GCE)	$	84		$	96		$	(12	)
General Corp Expense as a % of net sales		1.4	%		1.6	%	20		bps

Business Segments	9/30/2010			9/30/2009			Change
Cabinets and Related Products:
Net Sales	$	1,160		$	1,248			-7	%
Operating (Loss)	$	(113	)	$	(56	)		N/A
Operating (Loss) % of Net Sales		-9.7	%		-4.5	%	(520)		bps
Plumbing Products:
Net Sales	$	2,031		$	1,893			7	%
Operating Profit	$	267		$	202			N/A
Operating Profit % of Net Sales		13.1	%		10.7	%	240		bps
Installation and Other Services:
Net Sales	$	874		$	961			-9	%
Operating (Loss)	$	(87	)	$	(104	)		N/A
Operating (Loss) % of Net Sales		-10.0	%		-10.8	%	80		bps
Decorative Architectural Products:
Net Sales	$	1,357		$	1,365			-1	%
Operating Profit	$	300		$	313			N/A
Operating Profit % of Net Sales		22.1	%		22.9	%	(80)		bps
Other Specialty Products:
Net Sales	$	435		$	427			2	%
Operating Profit	$	16		$	16			N/A
Operating Profit % of Net Sales		3.7	%		3.7	%	-		bps
Total Segment Reported:
Net Sales	$	5,857		$	5,894			-1	%
Operating Profit	$	383		$	371			N/A
Operating Profit % of Net Sales		6.5	%		6.3	%	20		bps
Change in Key Retailer Sales		-1	%		-7	%

Page 6

Masco Corporation
Key Financial Data As Reported — Unaudited
Year-to-Date September 30, 2010 and 2009
(In Millions, Except Earnings Per Share and Working Capital Days)

Business Regions	9/30/2010			9/30/2009			Change
North America
Net Sales	$	4,617		$	4,694			-2	%
Operating Profit	$	257		$	261			N/A
Operating Profit % of Net Sales		5.6	%		5.6	%	-		bps
International, principally Europe
Net Sales	$	1,240		$	1,200			3	%
Operating Profit	$	126		$	110			N/A
Operating Profit % of Net Sales		10.2	%		9.2	%	100		bps

Working Capital	9/30/2010			9/30/2009			Change
Receivable Days		49			50			(1	)
Inventory Days		53			50			3
Payable Days		51			49			2
Working Capital (Receivables+Inventory-Payables)	$	1,258		$	1,368		$	(110	)
Working Capital as a % of Sales (As Reported TTM1)		16.2	%		17.3	%	110		bps

Other	9/30/2010			9/30/2009
Dividend Payments	$	81		$	139
Cash Paid for Share Repurchases2	$	45		$	11
Common Shares Repurchased2		3			2
CAPEX	$	88		$	70
Depreciation and Amortization	$	209		$	190
Return on Invested Capital (As Reported TTM1)		1.2	%		-2.5	%
Return on Invested Capital (As Reconciled TTM1)		4.1	%		2.4	%
Average diluted common shares outstanding		349			351

Balance Sheet Information	9/30/2010			12/31/2009
Long-Term Debt	$	4,036		$	3,604
Notes Payable	$	66		$	364
Total Debt	$	4,102		$	3,968
Shareholders’ Equity	$	2,700		$	2,817
Debt to Capital		60	%		58	%
Cash	$	1,537		$	1,413

1 -	Trailing twelve months.
2 -	Common shares were repurchased to offset the effect of stock award grants in the first quarters of 2010 and 2009.

Page 7

Masco Corporation — 3rd Quarter 2010

Page
1	Condensed Consolidated Statements of Operations - 2010 & 2009 by Quarter — Unaudited
2	Notes to Condensed Consolidated Statements of Operations - 2010 & 2009 by Quarter — Unaudited
3	2010 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited
4	2010 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited
5	2010 Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited
6	2009 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
7	2009 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
8	2009 Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
9	Other Income (Expense), Net - 2010 & 2009 by Quarter — Unaudited
10	Condensed Consolidated Balance Sheets — Unaudited
	GAAP Reconciliations:
11	Sales Growth Excluding the Effect of Acquisitions and Currency Translation — Unaudited
12	Operating Profit and Margins — Unaudited
13	Operating Profit and Shareholders’ Equity — Unaudited

Index

MASCO CORPORATION
Condensed Consolidated Statements of Operations
2010 & 2009 — by Quarter — Unaudited
(dollars in millions, except per share data)

	2010											2009
	Year	Qtr. 4	Qtr. 3			Qtr. 2			Qtr. 1			Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Net Sales			$	1,957		$	2,048		$	1,852		$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
Cost of Sales				1,463			1,502			1,360			5,774			1,403			1,517			1,470			1,384
Gross Profit				494			546			492			2,018			495			567			543			413
(Gross Margin as a % of Sales)				25.2	%		26.7	%		26.6	%		25.9	%		26.1	%		27.2	%		27.0	%		23.0	%
SG&A Expense (before lines 1, 2, 3, 4)				365			400			384			1,546			386			386			400			374
(S,G&A Expense as a % of Sales)				18.7	%		19.5	%		20.7	%		19.8	%		20.3	%		18.5	%		19.9	%		20.8	%
Operating Profit (before lines 1, 2, 3, 4)				129			146			108			472			109			181			143			39
(Operating Margin as a % of Sales)				6.6	%		7.1	%		5.8	%		6.1	%		5.7	%		8.7	%		7.1	%		2.2	%
1 General Corporate Expense (GCE), Net				27			27			30			140			44			36			27			33
S,G&A Expense as a % of Sales (including lines 1,2,3,4)				20.0	%		20.8	%		22.4	%		25.2	%		36.5	%		20.6	%		21.2	%		23.1	%
2 Charge for Defined-Benefit Plan Curtailment				—			—			—			8			—			—			—			8
3 Charge for Litigation Settlement				—			—			—			7			—			7			—			—
4 Impairment Charges for Goodwill and Other Intangible Assets				—			—			—			262			262			—			—			—
Operating Profit (Loss) per F/S			$	102		$	119		$	78		$	55		$	(197	)	$	138		$	116		$	(2	)
(Loss) Income Per Common Share Attributable to Masco Corporation (Diluted):
(Loss) Income from Continuing Operations			$	(0.02	)	$	0.01		$	(0.02	)	$	(0.41	)	$	(0.49	)	$	0.14		$	0.19		$	(0.24	)
(Loss) Income from Discontinued Operations, Net				—			—			—			(0.12	)		(0.03	)		(0.06	)		(0.03	)		0.01
Net (Loss) Income			$	(0.02	)	$	0.01		$	(0.02	)	$	(0.53	)	$	(0.53	)	$	0.08		$	0.15		$	(0.23	)

Please see page 2 for Notes.

Page 1

MASCO CORPORATION
Notes To Condensed Consolidated Statements of Operations
2010 & 2009 — by Quarter — Unaudited

Notes:

- Data exclude discontinued operations.

- Operating results for the third quarter of 2010 include costs and charges related to business rationalizations and other initiatives of $39 million pre-tax ($.07 per common share, after tax).

- Operating results for the second quarter of 2010 include costs and charges related to business rationalizations and other initiatives of $51 million pre-tax ($.09 per common share, after tax).

- Operating results for the second quarter of 2010 include non-cash impairment charges for financial investments of $33 million pre-tax ($.06 per common share, after tax).

- Operating results for the first quarter of 2010 include costs and charges related to business rationalizations and other initiatives of $14 million pre-tax ($.03 per common share, after tax).

- Operating results for the fourth quarter of 2009 include non-cash impairment charges for goodwill and other intangible assets of $262 million pre-tax ($.51 per common share, after tax).

- Operating results for the first, second, third and fourth quarters of 2009 include costs and charges related to business rationalizations and other initiatives of $24 million pre-tax ($.04 per common share, after tax), $22 million pre-tax ($.04 per common share, after tax), $21 million pre-tax ($.04 per common share, after tax), and $27 million pre-tax ($.05 per common share, after tax), respectively.

- Operating results for the third quarter of 2009 include litigation settlement expense of $7 million pre-tax ($.01 per common share, after tax).

- Operating results for the second quarter of 2009 include accelerated stock compensation expense of $6 million pre-tax ($.01 per common share, after tax).

- Operating results for the first quarter of 2009 include a non-cash charge of $8 million pre-tax ($.01 per common share, after tax) related to the curtailment and remeasurement of certain of the Company’s defined-benefit pension plans.

- Income from continuing operations for the first and second quarters of 2009 includes non-cash impairment charges for financial investments of $3 million pre-tax ($.01 per common share, after tax) and $7 million pre-tax ($.01 per common share, after tax), respectively.

- (Loss) income from discontinued operations for the fourth quarter of 2009 include loss of $19 million pre-tax ($.04 per common share, after tax) on the disposition of a European business unit in the Plumbing Products segment.

- (Loss) income from discontinued operations for the third quarter of 2009 include loss of $22 million pre-tax ($.06 per common share, after tax) on the disposition of a European business unit in the Plumbing Products segment.

Page 2

MASCO CORPORATION
Quarterly Segment Data — 2010
Excluding Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited
(dollars in millions)

	Year	Qtr. 4	Qtr. 3			Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products			$	357		$	400		$	403
- Plumbing Products				686			682			663
- Installation and Other Services				292			309			273
- Decorative Architectural Products				463			505			389
- Other Specialty Products				159			152			124
- Total			$	1,957		$	2,048		$	1,852
- North America			$	1,528		$	1,659		$	1,430
- International, principally Europe				429			389			422
- Total, as above			$	1,957		$	2,048		$	1,852
Operating (Loss) Profit:
- Cabinets and Related Products			$	(27	)	$	6		$	(4	)
- Plumbing Products				100			92			85
- Installation and Other Services				(20	)		(21	)		(40	)
- Decorative Architectural Products				104			109			87
- Other Specialty Products				11			11			(6	)
- Total			$	168		$	197		$	122
- North America			$	116		$	160		$	76
- International, principally Europe				52			37			46
- Total, as above			$	168		$	197		$	122
General Corporate Expense (GCE), Net				27			27			30
Loss on Corporate Fixed Assets, Net				—			—			—
Charge for Litigation Settlement				—			—			—
Operating Profit (after GCE and Adjustments)				141			170			92
Other Income (Expense), Net				(64	)		(103	)		(56	)
Income from Continuing Operations before Income Taxes			$	77		$	67		$	36
Margins:
- Cabinets and Related Products				-7.6	%		1.5	%		-1.0	%
- Plumbing Products				14.6	%		13.5	%		12.8	%
- Installation and Other Services				-6.8	%		-6.8	%		-14.7	%
- Decorative Architectural Products				22.5	%		21.6	%		22.4	%
- Other Specialty Products				6.9	%		7.2	%		-4.8	%
- Total				8.6	%		9.6	%		6.6	%
- North America				7.6	%		9.6	%		5.3	%
- International, principally Europe				12.1	%		9.5	%		10.9	%
- Total, as above				8.6	%		9.6	%		6.6	%

Notes:

- Data exclude discontinued operations.

- Operating (loss) profit and margins by segment and geographic area are before general corporate expense.

- See 2010 Costs and Charges for Business Rationalizations and Other Initiatives — page 5.

Page 3

MASCO CORPORATION
Quarterly Segment Data — 2010
Including Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited

(dollars in millions)

	Year	Qtr. 4	Qtr. 3			Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products			$	357		$	400		$	403
- Plumbing Products				686			682			663
- Installation and Other Services				292			309			273
- Decorative Architectural Products				463			505			389
- Other Specialty Products				159			152			124
- Total			$	1,957		$	2,048		$	1,852
- North America			$	1,528		$	1,659		$	1,430
- International, principally Europe				429			389			422
- Total, as above			$	1,957		$	2,048		$	1,852
Operating (Loss) Profit:
- Cabinets and Related Products			$	(61	)	$	(37	)	$	(15	)
- Plumbing Products				97			86			84
- Installation and Other Services				(22	)		(23	)		(42	)
- Decorative Architectural Products				104			109			87
- Other Specialty Products				11			11			(6	)
- Total			$	129		$	146		$	108
- North America			$	79		$	114		$	64
- International, principally Europe				50			32			44
- Total, as above			$	129		$	146		$	108
General Corporate Expense (GCE), Net				27			27			30
Loss on Corporate Fixed Assets, Net				—			—			—
Charge for Litigation Settlement				—			—			—
Operating Profit (after GCE and Adjustments)				102			119			78
Other Income (Expense), Net				(64	)		(103	)		(56	)
Income from Continuing Operations before Income Taxes			$	38		$	16		$	22
Margins:
- Cabinets and Related Products				-17.1	%		-9.3	%		-3.7	%
- Plumbing Products				14.1	%		12.6	%		12.7	%
- Installation and Other Services				-7.5	%		-7.4	%		-15.4	%
- Decorative Architectural Products				22.5	%		21.6	%		22.4	%
- Other Specialty Products				6.9	%		7.2	%		-4.8	%
- Total				6.6	%		7.1	%		5.8	%
- North America				5.2	%		6.9	%		4.5	%
- International, principally Europe				11.7	%		8.2	%		10.4	%
- Total, as above				6.6	%		7.1	%		5.8	%

Notes:

- Data exclude discontinued operations.

- Operating (loss) profit and margins by segment and geographic area are before general corporate expense.

- See 2010 Costs and Charges for Business Rationalizations and Other Initiatives — page 5.

Page 4

MASCO CORPORATION
Quarterly Segment Data — 2010
Costs and Charges for Business Rationalizations and Other Initiatives
(in millions)

	Year	Qtr. 4	Qtr. 3		Qtr. 2		Qtr. 1
Business Rationalizations & Other Initiatives
-Cabinets and Related Products			$	34	$	43	$	11
-Plumbing Products				3		6		1
-Installation and Other Services				2		2		2
-Decorative Architectural Products				—		—		—
-Other Specialty Products				—		—		—
-Total			$	39	$	51	$	14
-North America			$	37	$	46	$	12
-International, principally Europe				2		5		2
-Total, as above			$	39	$	51	$	14
General Corporate Expense (GCE), Net				—		—		—
-Total			$	39	$	51	$	14

Notes:

- Data exclude discontinued operations.

- Business rationalizations and other initiatives include costs and charges for business consolidations, plant closures, headcount reductions, system implementations and other initiatives.

Page 5

MASCO CORPORATION
Quarterly Segment Data — 2009
Excluding Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)

	Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products	$	1,674		$	426		$	434		$	419		$	395
- Plumbing Products		2,564			671			678			631			584
- Installation and Other Services		1,256			295			332			312			317
- Decorative Architectural Products		1,714			349			474			505			386
- Other Specialty Products		584			157			166			146			115
- Total	$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
- North America	$	6,135		$	1,441		$	1,630		$	1,630		$	1,434
- International, principally Europe		1,657			457			454			383			363
- Total, as above	$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
Operating (Loss) Profit:
- Cabinets and Related Products	$	(21	)	$	9		$	(9	)	$	(2	)	$	(19	)
- Plumbing Products		295			80			99			78			38
- Installation and Other Services		(107	)		(25	)		(27	)		(27	)		(28	)
- Decorative Architectural Products		376			62			123			116			75
- Other Specialty Products		27			8			16			8			(5	)
- Total	$	570		$	134		$	202		$	173		$	61
- North America	$	394		$	75		$	139		$	141		$	39
- International, principally Europe		176			59			63			32			22
- Total, as above	$	570		$	134		$	202		$	173		$	61
General Corporate Expense (GCE), Net		136			42			36			27			31
Accelerated Stock Compensation Expense		6			—			—			6			—
Loss on Corporate Fixed Assets, Net		2			—			—			2			—
Charge for Litigation Settlement		7			—			7			—			—
Charge for Defined-Benefit Plan Curtailment		8			—			—			—			8
Operating Profit (after GCE and Adjustments)		411			92			159			138			22
Other Income (Expense), Net		(206	)		(49	)		(49	)		(49	)		(59	)
Income (Loss) from Continuing Operations before Income Taxes	$	205		$	43		$	110		$	89		$	(37	)
Margins:
- Cabinets and Related Products		-1.3	%		2.1	%		-2.1	%		-0.5	%		-4.8	%
- Plumbing Products		11.5	%		11.9	%		14.6	%		12.4	%		6.5	%
- Installation and Other Services		-8.5	%		-8.5	%		-8.1	%		-8.7	%		-8.8	%
- Decorative Architectural Products		21.9	%		17.8	%		25.9	%		23.0	%		19.4	%
- Other Specialty Products		4.6	%		5.1	%		9.6	%		5.5	%		-4.3	%
- Total		7.3	%		7.1	%		9.7	%		8.6	%		3.4	%
- North America		6.4	%		5.2	%		8.5	%		8.7	%		2.7	%
- International, principally Europe		10.6	%		12.9	%		13.9	%		8.4	%		6.1	%
- Total, as above		7.3	%		7.1	%		9.7	%		8.6	%		3.4	%

Notes:

- Data exclude discontinued operations.

- Operating (loss) profit and margins by segment and geographic area are before general corporate expense, charge for defined-benefit plan curtailment, accelerated stock compensation expense, loss on corporate fixed assets, net and charge for litigation settlement.

- See 2009 Costs and Charges for Business Rationalizations and Other Initiatives — page 8.

Page 6

MASCO CORPORATION
Quarterly Segment Data — 2009
Including Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)

	Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products	$	1,674		$	426		$	434		$	419		$	395
- Plumbing Products		2,564			671			678			631			584
- Installation and Other Services		1,256			295			332			312			317
- Decorative Architectural Products		1,714			349			474			505			386
- Other Specialty Products		584			157			166			146			115
- Total	$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
- North America	$	6,135		$	1,441		$	1,630		$	1,630		$	1,434
- International, principally Europe		1,657			457			454			383			363
- Total, as above	$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
Operating (Loss) Profit:
- Cabinets and Related Products	$	(64	)	$	(8	)	$	(16	)	$	(12	)	$	(28	)
- Plumbing Products		237			35			93			74			35
- Installation and Other Services		(131	)		(27	)		(34	)		(34	)		(36	)
- Decorative Architectural Products		375			62			122			116			75
- Other Specialty Products		(199	)		(215	)		16			7			(7	)
- Total	$	218		$	(153	)	$	181		$	151		$	39
- North America	$	93		$	(168	)	$	123		$	119		$	19
- International, principally Europe		125			15			58			32			20
- Total, as above	$	218		$	(153	)	$	181		$	151		$	39
General Corporate Expense (GCE), Net		140			44			36			27			33
Accelerated Stock Compensation Expense		6			—			—			6			—
Loss on Corporate Fixed Assets, Net		2			—			—			2			—
Charge for Litigation Settlement		7			—			7			—			—
Charge for Defined-Benefit Plan Curtailment		8			—			—			—			8
Operating (Loss) Profit (after GCE and Adjustments)		55			(197	)		138			116			(2	)
Other Income (Expense), Net		(206	)		(49	)		(49	)		(49	)		(59	)
Income (Loss) from Continuing Operations before Income Taxes	$	(151	)	$	(246	)	$	89		$	67		$	(61	)
Margins:
- Cabinets and Related Products		-3.8	%		-1.9	%		-3.7	%		-2.9	%		-7.1	%
- Plumbing Products		9.2	%		5.2	%		13.7	%		11.7	%		6.0	%
- Installation and Other Services		-10.4	%		-9.2	%		-10.2	%		-10.9	%		-11.4	%
- Decorative Architectural Products		21.9	%		17.8	%		25.7	%		23.0	%		19.4	%
- Other Specialty Products		-34.1	%		-136.9	%		9.6	%		4.8	%		-6.1	%
- Total		2.8	%		-8.1	%		8.7	%		7.5	%		2.2	%
- North America		1.5	%		-11.7	%		7.5	%		7.3	%		1.3	%
- International, principally Europe		7.5	%		3.3	%		12.8	%		8.4	%		5.5	%
- Total, as above		2.8	%		-8.1	%		8.7	%		7.5	%		2.2	%

Notes:

- Data exclude discontinued operations.

- Operating (loss) profit and margins by segment and geographic area are before general corporate expense, charge for defined benefit plan curtailment, accelerated stock compensation expense, loss on corporate fixed assets, net and charge for litigation settlement.

- See 2009 Costs and Charges for Business Rationalizations and Other Initiatives — page 8.

Page 7

MASCO CORPORATION
Quarterly Segment Data — 2009
Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(in millions)

	Year		Qtr. 4		Qtr. 3		Qtr. 2		Qtr. 1
Business Rationalizations & Other Initiatives
- Cabinets and Related Products	$	43	$	17	$	7	$	10	$	9
- Plumbing Products		19		6		6		4		3
- Installation and Other Services		24		2		7		7		8
- Decorative Architectural Products		1		—		1		—		—
- Other Specialty Products		3		—		—		1		2
- Total	$	90	$	25	$	21	$	22	$	22
- North America	$	78	$	20	$	16	$	22	$	20
- International, principally Europe		12		5		5		—		2
- Total, as above	$	90	$	25	$	21	$	22	$	22
General Corporate Expense (GCE), Net		4		2		—		—		2
- Total	$	94	$	27	$	21	$	22	$	24
Goodwill and Other Intangible Assets Impairment
- Cabinets and Related Products	$	—	$	—	$	—	$	—	$	—
- Plumbing Products		39		39		—		—		—
- Installation and Other Services		—		—		—		—		—
- Decorative Architectural Products		—		—		—		—		—
- Other Specialty Products		223		223		—		—		—
- Total	$	262	$	262	$	—	$	—	$	—
- North America	$	223	$	223	$	—	$	—	$	—
- International, principally Europe		39		39		—		—		—
- Total, as above	$	262	$	262	$	—	$	—	$	—

Notes:
-	Data exclude discontinued operations.
-	Business rationalizations and other initiatives include costs and charges for business consolidations, plant closures, headcount reductions, system implementations and other initiatives.

Page 8

MASCO CORPORATION
Other Income (Expense), Net
2010 & 2009 — by Quarter — Unaudited
(in millions)

	2010													2009
	Year		Qtr. 4		Qtr. 3			Qtr. 2			Qtr. 1			Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Interest Expense					$	(63	)	$	(67	)	$	(58	)	$	(225	)	$	(56	)	$	(56	)	$	(57	)	$	(56	)
Income from Cash and Cash Investments						2			1			1			7			1			2			1			3
Other Interest Income						—			—			1			2			1			1			—			—
Realized Gains (Losses) from Financial Investments, Net						(3	)		1			—			3			3			—			—			—
Impairment Charges for Financial Investments						—			(33	)		—			(10	)		—			—			(7	)		(3	)
Other, Net						—			(5	)		—			17			2			4			14			(3	)
Total Other Income (Expense), Net	$	—	$	—	$	(64	)	$	(103	)	$	(56	)	$	(206	)	$	(49	)	$	(49	)	$	(49	)	$	(59	)

Notes:
-	Data exclude discontinued operations.
-	Other, Net, in 2010 includes currency (losses) gains of ($1) million, ($5) million and $4 million for the first, second and third quarters, respectively.
-	Other, Net, in 2009 includes currency (losses) gains of ($2) million, $11 million, $5 million, and $3 million for the first, second, third and fourth quarters, respectively.

Page 9

MASCO CORPORATION
Condensed Consolidated Balance Sheets — Unaudited
(in millions)

	September 30,		December 31,
	2010		2009
Assets
Current Assets:
Cash and Cash Investments	$	1,537	$	1,413
Receivables		1,106		983
Prepaid Expenses and Other		288		312
Inventories		802		743
Total Current Assets		3,733		3,451
Property and Equipment, Net		1,838		1,981
Goodwill		3,098		3,108
Other Intangible Assets, Net		282		290
Other Assets		302		345
Total Assets	$	9,253	$	9,175
Liabilities
Current Liabilities:
Notes Payable	$	66	$	364
Accounts Payable		650		578
Accrued Liabilities		842		839
Total Current Liabilities		1,558		1,781
Long-Term Debt		4,036		3,604
Deferred Income Taxes and Other		959		973
Total Liabilities		6,553		6,358
Shareholders’ Equity		2,700		2,817
Total Liabilities and Shareholders’ Equity	$	9,253	$	9,175

Page 10

MASCO CORPORATION
GAAP Reconciliation of Sales Growth
Excluding the Effect of Acquisitions and Currency Translation — Unaudited
(dollars in millions)

	Three Months Ended
	September 30,
	2010			2009		% D
Net Sales, As Reported	$	1,957		$	2,084		-6	%
- Acquisitions		—			—
- Currency Translation		39			—
Net Sales, Excluding Acquisitions and Currency Translation	$	1,996		$	2,084		-4	%
North America Net Sales, As Reported	$	1,528		$	1,630		-6	%
- Acquisitions		—			—
- Currency Translation		(3	)		—
North America Net Sales, Excluding Acquisitions and Currency Translation	$	1,525		$	1,630		-6	%
International Net Sales, As Reported	$	429		$	454		-6	%
- Acquisitions		—			—
- Currency Translation		42			—
International Net Sales, Excluding Acquisitions and Currency Translation	$	471		$	454		4	%

	Nine Months Ended
	September 30,
	2010			2009		% D
As Reported	$	5,857		$	5,894		-1	%
- Acquisitions		—			—
- Currency Translation		18			—
Net Sales, Excluding Acquisitions and Currency Translation	$	5,875		$	5,894		0	%
North America Net Sales, As Reported	$	4,617		$	4,694		-2	%
- Acquisitions		—			—
- Currency Translation		(20	)		—
North America Net Sales, Excluding Acquisitions and Currency Translation	$	4,597		$	4,694		-2	%
International Net Sales, As Reported	$	1,240		$	1,200		3	%
- Acquisitions		—			—
- Currency Translation		38			—
International Net Sales, Excluding Acquisitions and Currency Translation	$	1,278		$	1,200		6	%

Notes:

- Data exclude discontinued operations.

- The Company presents information comparing results from one period to another excluding the results of businesses acquired in order to assess the performance of the underlying businesses and to assess to what extent acquisitions are driving growth.

- The Company also presents information comparing results of International operations from one period to another using constant exchange rates. To present this information, current period results for foreign entities are converted into U.S. dollars using the prior period’s exchange rates, rather than exchange rates for the current period. The Company presents this information in order to assess how the underlying businesses performed local currencies before taking into account currency fluctuations.

- The currency translation effect on North American net sales includes currency translation related to Canadian business units.

Page 11

MASCO CORPORATION
GAAP Reconciliation of Operating Profit and Margins — Unaudited
(dollars in millions)

	Three Months Ended September 30,
	2010					2009
	$		Margin			$		Margin
Operating Profit, As Reported	$	102		5.2	%	$	138		6.6	%
Impairment Charges for Goodwill and Other Intangible Assets		—					—
Business Rationalizations and Other Initiatives		39					21
Charge for Litigation Settlement		—					—
Charge for Defined-Benefit Plan Curtailment		—					—
Operating Profit, As Reconciled	$	141		7.2	%	$	159		7.6	%

	Nine Months Ended September 30,
	2010					2009
	$		Margin			$		Margin
Operating Profit, As Reported	$	299		5.1	%	$	252		4.3	%
Impairment Charges for Goodwill and Other Intangible Assets		—					—
Business Rationalizations and Other Initiatives		104					67
Charge for Litigation Settlement		—					7
Charge for Defined-Benefit Plan Curtailment		—					8
Operating Profit, As Reconciled	$	403		6.9	%	$	334		5.7	%

Notes:

- Data exclude discontinued operations.

- The Company believes that certain non-GAAP performance measures and ratios, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.

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MASCO CORPORATION
GAAP Reconciliation of Operating Profit and Shareholders’ Equity — Unaudited
(in millions)

	Twelve
	Months Ended
	September 30,
	2010
Operating Profit, As Reported	$	102
Impairment Charges for Goodwill and Other Intangible Assets, Continuing Operations		262
Charge for Defined-Benefit Plan Curtailment		—
Charge for Litigation Settlement		—
Operating Profit, As Reconciled	$	364

	Twelve Months Ended
	September 30,
	2010		2009
Shareholders’ Equity, As Reported	$	2,700	$	3,069
Impairment Charges for Goodwill and Other Intangible Assets (after tax)		180		445
Charge for Defined-Benefit Plan Curtailment (after tax)		—		5
Charge for Litigation Settlement (after tax)		—		4
Shareholders’ Equity, As Reconciled	$	2,880	$	3,523

Notes:

- Data exclude discontinued operations.

- The Company believes that certain non-GAAP performance measures and ratios, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.

- This information is provided as detail for the calculation of return on invested capital (“ROIC”) which is calculated as after-tax operating profit (last twelve months, as reconciled) divided by the total of average debt (net of average cash) and average shareholders’ equity.

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