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) |
Item 2.02. Results of Operations and Financial Condition | ||||||||
Item 9.01. Financial Statements and Exhibits | ||||||||
SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
EX-99 |
MASCO CORPORATION |
||||
By: | /s/ John G. Sznewajs | |||
Name: | John G. Sznewajs | |||
Title: | Vice President, Treasurer and Chief Financial Officer |
|||
![]() |
FOR IMMEDIATE RELEASE |
| Sales declined one percent to $2.0 billion. | ||
| Results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, compared to the second quarter of 2010 were as follows: |
| Gross profit margins were 26.9 percent compared to 28.4 percent. | ||
| Operating profit margins were 5.5 percent compared to 8.3 percent. | ||
| Income was $.05 per common share compared to $.16 per common share. |
| Income, as reported, was $.02 per common share compared to $.01 per common share for the second quarter of 2010. | ||
| Working capital as a percent of sales improved to 15.6 percent at June 30, 2011, compared to 16.1 percent at June 30, 2010. | ||
| We ended the second quarter of 2011 with over $1.6 billion of cash. |
1
2
3
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 2,022 | $ | 2,048 | $ | 3,794 | $ | 3,900 | ||||||||
Cost of Sales |
1,490 | 1,502 | 2,837 | 2,862 | ||||||||||||
Gross profit |
532 | 546 | 957 | 1,038 | ||||||||||||
Selling, general and administrative expenses |
441 | 427 | 845 | 841 | ||||||||||||
Operating profit |
91 | 119 | 112 | 197 | ||||||||||||
Other income (expense), net |
(33 | ) | (103 | ) | (75 | ) | (159 | ) | ||||||||
Income before income taxes |
58 | 16 | 37 | 38 | ||||||||||||
Income tax expense |
38 | 4 | 51 | 22 | ||||||||||||
Net income (loss) |
20 | 12 | (14 | ) | 16 | |||||||||||
Less: Net income attributable to non-controlling interest |
(12 | ) | (9 | ) | (24 | ) | (20 | ) | ||||||||
Net income (loss) attributable to Masco Corporation |
$ | 8 | $ | 3 | $ | (38 | ) | $ | (4 | ) | ||||||
Income (loss) per common share attributable to Masco |
||||||||||||||||
Corporation (diluted): |
||||||||||||||||
Net income (loss) attributable to Masco Corporation |
$ | 0.02 | $ | 0.01 | $ | (0.11 | ) | $ | (0.02 | ) | ||||||
Average diluted common shares outstanding |
349 | 349 | 348 | 349 | ||||||||||||
Amounts attributable to Masco Corporation: |
||||||||||||||||
Net income (loss) attributable to Masco Corporation |
$ | 8 | $ | 3 | $ | (38 | ) | $ | (4 | ) | ||||||
4
Sales & Earnings | 6/30/2011 | 6/30/2010 | Change | ||||||||||
Net Sales |
$ | 2,022 | $ | 2,048 | -1 | % | |||||||
Operating Profit |
$ | 91 | $ | 119 | N/A | ||||||||
Operating Profit % of Net Sales |
4.5 | % | 5.8 | % | (130 | ) | bps | ||||||
Other Income (Expense), Net |
$ | (33 | ) | $ | (103 | ) | $ | 70 | |||||
Income Tax Expense |
$ | 38 | $ | 4 | N/A | ||||||||
Income Attributable to Masco Corporation |
$ | 8 | $ | 3 | N/A | ||||||||
Diluted EPS |
$ | 0.02 | $ | 0.01 | N/A |
Operating Expenses | 6/30/2011 | 6/30/2010 | Change | ||||||||||
Cost of Sales |
$ | 1,490 | $ | 1,502 | -1 | % | |||||||
Gross Margin |
26.3 | % | 26.7 | % | (40 | ) | bps | ||||||
SG&A Expenses (Including GCE) |
$ | 441 | $ | 427 | 3 | % | |||||||
SG&A as a % of net sales |
21.8 | % | 20.8 | % | (100 | ) | bps | ||||||
General Corporate Expense (GCE) |
$ | 36 | $ | 27 | 33 | % | |||||||
General Corp Expense as a % of net sales |
1.8 | % | 1.3 | % | 50 | bps |
Business Segments | 6/30/2011 | 6/30/2010 | Change | ||||||||||
Cabinets and Related Products: |
|||||||||||||
Net Sales |
$ | 330 | $ | 400 | -18 | % | |||||||
Operating Loss |
$ | (27 | ) | $ | (37 | ) | N/A | ||||||
Operating Loss % of Net Sales |
-8.2 | % | -9.3 | % | 110 | bps | |||||||
Plumbing Products: |
|||||||||||||
Net Sales |
$ | 761 | $ | 682 | 12 | % | |||||||
Operating Profit |
$ | 95 | $ | 86 | N/A | ||||||||
Operating Profit % of Net Sales |
12.5 | % | 12.6 | % | (10 | ) | bps | ||||||
Installation and Other Services: |
|||||||||||||
Net Sales |
$ | 294 | $ | 309 | -5 | % | |||||||
Operating Loss |
$ | (26 | ) | $ | (23 | ) | N/A | ||||||
Operating Loss % of Net Sales |
-8.8 | % | -7.4 | % | (140 | ) | bps | ||||||
Decorative Architectural Products: |
|||||||||||||
Net Sales |
$ | 492 | $ | 505 | -3 | % | |||||||
Operating Profit |
$ | 90 | $ | 109 | N/A | ||||||||
Operating Profit % of Net Sales |
18.3 | % | 21.6 | % | (330 | ) | bps | ||||||
Other Specialty Products: |
|||||||||||||
Net Sales |
$ | 145 | $ | 152 | -5 | % | |||||||
Operating Profit |
$ | | $ | 11 | N/A | ||||||||
Operating Profit % of Net Sales |
0.0 | % | 7.2 | % | (720 | ) | bps | ||||||
Total Segment Reported: |
|||||||||||||
Net Sales |
$ | 2,022 | $ | 2,048 | -1 | % | |||||||
Operating Profit |
$ | 132 | $ | 146 | N/A | ||||||||
Operating Profit % of Net Sales |
6.5 | % | 7.1 | % | (60 | ) | bps |
Business Regions | 6/30/2011 | 6/30/2010 | Change | ||||||||||
North America |
|||||||||||||
Net Sales |
$ | 1,563 | $ | 1,659 | -6 | % | |||||||
Operating Profit |
$ | 87 | $ | 114 | N/A | ||||||||
Operating Profit % of Net Sales |
5.6 | % | 6.9 | % | (130 | ) | bps | ||||||
International, principally Europe |
|||||||||||||
Net Sales |
$ | 459 | $ | 389 | 18 | % | |||||||
Operating Profit |
$ | 45 | $ | 32 | N/A | ||||||||
Operating Profit % of Net Sales |
9.8 | % | 8.2 | % | 160 | bps |
5
Sales & Earnings | 6/30/2011 | 6/30/2010 | Change | ||||||||||
Net Sales |
$ | 3,794 | $ | 3,900 | -3 | % | |||||||
Operating Profit |
$ | 112 | $ | 197 | N/A | ||||||||
Operating Profit % of Net Sales |
3.0 | % | 5.1 | % | (210 | ) | bps | ||||||
Other Income (Expense), Net |
$ | (75 | ) | $ | (159 | ) | $ | 84 | |||||
Income Tax Expense |
$ | 51 | $ | 22 | N/A | ||||||||
(Loss) Attributable to Masco Corporation |
$ | (38 | ) | $ | (4 | ) | N/A | ||||||
Diluted EPS |
$ | (0.11 | ) | $ | (0.02 | ) | N/A |
Operating Expenses | 6/30/2011 | 6/30/2010 | Change | ||||||||||
Cost of Sales |
$ | 2,837 | $ | 2,862 | -1 | % | |||||||
Gross Margin |
25.2 | % | 26.6 | % | (140 | ) | bps | ||||||
SG&A Expenses (Including GCE) |
$ | 845 | $ | 841 | 0 | % | |||||||
SG&A as a % of net sales |
22.3 | % | 21.6 | % | (70 | ) | bps | ||||||
General Corporate Expense (GCE) |
$ | 68 | $ | 57 | 19 | % | |||||||
General Corp Expense as a % of net sales |
1.8 | % | 1.5 | % | 30 | bps |
Business Segments | 6/30/2011 | 6/30/2010 | Change | ||||||||||
Cabinets and Related Products: |
|||||||||||||
Net Sales |
$ | 637 | $ | 803 | -21 | % | |||||||
Operating Loss |
$ | (77 | ) | $ | (52 | ) | N/A | ||||||
Operating Loss % of Net Sales |
-12.1 | % | -6.5 | % | (560 | ) | bps | ||||||
Plumbing Products: |
|||||||||||||
Net Sales |
$ | 1,471 | $ | 1,345 | 9 | % | |||||||
Operating Profit |
$ | 179 | $ | 170 | N/A | ||||||||
Operating Profit % of Net Sales |
12.2 | % | 12.6 | % | (40 | ) | bps | ||||||
Installation and Other Services: |
|||||||||||||
Net Sales |
$ | 548 | $ | 582 | -6 | % | |||||||
Operating Loss |
$ | (66 | ) | $ | (65 | ) | N/A | ||||||
Operating Loss % of Net Sales |
-12.0 | % | -11.2 | % | (80 | ) | bps | ||||||
Decorative Architectural Products: |
|||||||||||||
Net Sales |
$ | 867 | $ | 894 | -3 | % | |||||||
Operating Profit |
$ | 159 | $ | 196 | N/A | ||||||||
Operating Profit % of Net Sales |
18.3 | % | 21.9 | % | (360 | ) | bps | ||||||
Other Specialty Products: |
|||||||||||||
Net Sales |
$ | 271 | $ | 276 | -2 | % | |||||||
Operating (Loss) Profit |
$ | (10 | ) | $ | 5 | N/A | |||||||
Operating (Loss) Profit % of Net Sales |
-3.7 | % | 1.8 | % | (550 | ) | bps | ||||||
Total Segment Reported: |
|||||||||||||
Net Sales |
$ | 3,794 | $ | 3,900 | -3 | % | |||||||
Operating Profit |
$ | 185 | $ | 254 | N/A | ||||||||
Operating Profit % of Net Sales |
4.9 | % | 6.5 | % | (160 | ) | bps |
6
Business Regions | 6/30/2011 | 6/30/2010 | Change | ||||||||||
North America |
|||||||||||||
Net Sales |
$ | 2,896 | $ | 3,089 | -6 | % | |||||||
Operating Profit |
$ | 98 | $ | 178 | N/A | ||||||||
Operating Profit % of Net Sales |
3.4 | % | 5.8 | % | (240 | ) | bps | ||||||
International, principally Europe |
|||||||||||||
Net Sales |
$ | 898 | $ | 811 | 11 | % | |||||||
Operating Profit |
$ | 87 | $ | 76 | N/A | ||||||||
Operating Profit % of Net Sales |
9.7 | % | 9.4 | % | 30 | bps |
Working Capital | 6/30/2011 | 6/30/2010 | |||||||||||
Receivable Days |
50 | 50 | | ||||||||||
Inventory Days |
59 | 55 | 4 | ||||||||||
Payable Days |
59 | 51 | 8 | ||||||||||
Working Capital (Receivables+Inventory-Payables) |
$ | 1,168 | $ | 1,268 | -8 | % | |||||||
Working Capital as a % of Sales (As Reported TTM1) |
15.6 | % | 16.1 | % | (50 | ) | bps | ||||||
Other | 6/30/2011 | 6/30/2010 | |||||||||||
Dividend Payments |
$ | 54 | $ | 54 | |||||||||
Cash Paid for Share Repurchases2 |
$ | 30 | $ | 45 | |||||||||
Common Shares Repurchased2 |
2 | 3 | |||||||||||
CAPEX |
$ | 67 | $ | 62 | |||||||||
Depreciation and Amortization |
$ | 137 | $ | 137 | |||||||||
Average diluted common shares outstanding |
348 | 349 | |||||||||||
Balance Sheet Information | |||||||||||||
Long-Term Debt |
$ | 4,027 | $ | 4,038 | |||||||||
Notes Payable |
$ | 65 | $ | 66 | |||||||||
Total Debt |
$ | 4,092 | $ | 4,104 | |||||||||
Shareholders Equity |
$ | 1,537 | $ | 2,608 | |||||||||
Debt to Capital |
73 | % | 61 | % | |||||||||
Cash |
1,611 | 1,384 |
1 | Trailing Twelve Months | |
2 | Common shares were repurchased to offset the effect of stock award grants in the first quarters of 2011 and 2010. |
7
Three Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
Sales |
$ | 2,022 | $ | 2,048 | ||||
Gross profit, as reported |
$ | 532 | $ | 546 | ||||
Rationalization charges |
11 | 36 | ||||||
Gross profit, as adjusted |
$ | 543 | $ | 582 | ||||
Gross margin, as reported |
26.3 | % | 26.7 | % | ||||
Gross margin, as adjusted |
26.9 | % | 28.4 | % | ||||
Operating profit, as reported |
$ | 91 | $ | 119 | ||||
Rationalization charges |
15 | 51 | ||||||
Litigation charge |
5 | | ||||||
Operating profit, as adjusted |
$ | 111 | $ | 170 | ||||
Operating margin, as reported |
4.5 | % | 5.8 | % | ||||
Operating margin, as adjusted |
5.5 | % | 8.3 | % |
Three Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
Income before income taxes as reported |
$ | 58 | $ | 16 | ||||
Rationalization charges |
15 | 51 | ||||||
Litigation charge |
5 | |||||||
(Gains) losses from financial investments |
(33 | ) | | |||||
Impairment of financial investments |
| 33 | ||||||
Income before income taxes as adjusted |
$ | 45 | $ | 100 | ||||
Tax at 36% rate |
(16 | ) | (36 | ) | ||||
Less: Net income attributable to non-controlling interest |
(12 | ) | (9 | ) | ||||
Net income as adjusted |
$ | 17 | $ | 55 | ||||
Earnings per common share as adjusted |
$ | 0.05 | $ | 0.16 | ||||
Shares outstanding |
349 | 349 |
8
Page | ||
1 | Condensed Consolidated Statements of Operations - 2011 & 2010 by Quarter Unaudited |
|
2 | Notes to Condensed Consolidated Statements of Operations - 2011 & 2010 by Quarter Unaudited |
|
3 | 2011 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and
Other Initiatives Unaudited |
|
4 | 2011 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and
Other Initiatives Unaudited |
|
5 | 2011 Costs and Charges for Business Rationalizations and Other Initiatives Unaudited |
|
6 | 2010 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and
Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets Unaudited |
|
7 | 2010 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and
Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets Unaudited |
|
8 | 2010 Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges
for Goodwill and Other Intangible Assets Unaudited |
|
9 | Other Income (Expense), Net - 2011 & 2010 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 |
9
2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | |||||||||||||||||||||||||||||||
Net Sales |
$ | 2,022 | $ | 1,772 | $ | 7,592 | $ | 1,735 | $ | 1,957 | $ | 2,048 | $ | 1,852 | ||||||||||||||||||||||||||
Cost of Sales |
1,490 | 1,347 | 5,752 | 1,427 | 1,463 | 1,502 | 1,360 | |||||||||||||||||||||||||||||||||
Gross Profit |
532 | 425 | 1,840 | 308 | 494 | 546 | 492 | |||||||||||||||||||||||||||||||||
(Gross Margin as a % of Sales) |
26.3 | % | 24.0 | % | 24.2 | % | 17.8 | % | 25.2 | % | 26.7 | % | 26.6 | % | ||||||||||||||||||||||||||
SG&A Expense (before lines 1, 2, 3) |
400 | 372 | 1,508 | 359 | 365 | 400 | 384 | |||||||||||||||||||||||||||||||||
(S,G&A Expense as a % of Sales) |
19.8 | % | 21.0 | % | 19.9 | % | 20.7 | % | 18.7 | % | 19.5 | % | 20.7 | % | ||||||||||||||||||||||||||
Operating Profit (before lines 1, 2, 3) |
132 | 53 | 332 | (51 | ) | 129 | 146 | 108 | ||||||||||||||||||||||||||||||||
(Operating Margin as a % of Sales) |
6.5 | % | 3.0 | % | 4.4 | % | -2.9 | % | 6.6 | % | 7.1 | % | 5.8 | % | ||||||||||||||||||||||||||
1 General Corporate Expense (GCE), Net |
36 | 32 | 110 | 26 | 27 | 27 | 30 | |||||||||||||||||||||||||||||||||
S,G&A Expense as a % of Sales (including lines 1, 2, 3) |
21.8 | % | 22.8 | % | 30.8 | % | 63.7 | % | 20.0 | % | 20.8 | % | 22.4 | % | ||||||||||||||||||||||||||
2 Charge for Litigation Settlement |
5 | | | | | | | |||||||||||||||||||||||||||||||||
3 Impairment Charges for Goodwill
and Other Intangible Assets |
| | 721 | 721 | | | | |||||||||||||||||||||||||||||||||
Operating Profit (Loss) per F/S |
$ | 91 | $ | 21 | $ | (499 | ) | $ | (798 | ) | $ | 102 | $ | 119 | $ | 78 | ||||||||||||||||||||||||
Income (Loss) Per Common Share Attributable to
Masco Corporation (Diluted): |
||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) |
$ | 0.02 | $ | (0.13 | ) | $ | (3.00 | ) | $ | (2.96 | ) | $ | (0.02 | ) | $ | 0.01 | $ | (0.02 | ) | |||||||||||||||||||||
Page 1
- | Data exclude discontinued operations. | ||
- | Operating results for the first and second quarters of 2011 include costs and charges related to business rationalizations and other initiatives of $32 million pre-tax ($.06 per common share, after tax) and $15 million pre-tax ($.03 per common share, after tax), respectively. | ||
- | Operating results for the second quarter of 2011 include litigation settlement expense of $5 million pre-tax ($.01 per common share, after tax). | ||
- | Net income (loss) for the first and second quarters of 2011 include income from financial investments of $17 million pre-tax ($.03 per common share, after tax) and $33 million, pre-tax ($.06 per common share, after tax), respectively. | ||
- | Operating results for the fourth quarter of 2010 include non-cash impairment charges for goodwill and other intangible assets of $721 million pre-tax ($1.70 per common share, after tax). | ||
- | Operating results for the first, second, third and fourth quarters of 2010 include costs and charges related to business rationalizations and other initiatives of $14 million pre-tax ($.03 per common share, after tax), $51 million pre-tax ($.09 per common share, after tax), $39 million pre-tax ($.07 per common share, after tax), and $104 million pre-tax ($.19 per common share, after tax), respectively. | ||
- | Net income (loss) for the second and fourth quarters of 2010 include non-cash impairment charges for financial investments of $33 million pre-tax ($.06 per common share, after tax) and $1 million pre-tax respectively. |
Page 2
Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | ||||||||||||||||
Net Sales: |
||||||||||||||||||||
- Cabinets and Related Products |
$ | 330 | $ | 307 | ||||||||||||||||
- Plumbing Products |
761 | 710 | ||||||||||||||||||
- Installation and Other Services |
294 | 254 | ||||||||||||||||||
- Decorative Architectural Products |
492 | 375 | ||||||||||||||||||
- Other Specialty Products |
145 | 126 | ||||||||||||||||||
- Total |
$ | 2,022 | $ | 1,772 | ||||||||||||||||
- North America |
$ | 1,563 | $ | 1,333 | ||||||||||||||||
- International, principally Europe |
459 | 439 | ||||||||||||||||||
- Total, as above |
$ | 2,022 | $ | 1,772 | ||||||||||||||||
Operating (Loss) Profit: |
||||||||||||||||||||
- Cabinets and Related Products |
$ | (21 | ) | $ | (29 | ) | ||||||||||||||
- Plumbing Products |
100 | 90 | ||||||||||||||||||
- Installation and Other Services |
(24 | ) | (38 | ) | ||||||||||||||||
- Decorative Architectural Products |
90 | 70 | ||||||||||||||||||
- Other Specialty Products |
| (10 | ) | |||||||||||||||||
- Total |
$ | 145 | $ | 83 | ||||||||||||||||
- North America |
$ | 100 | $ | 41 | ||||||||||||||||
- International, principally Europe |
45 | 42 | ||||||||||||||||||
- Total, as above |
$ | 145 | $ | 83 | ||||||||||||||||
General Corporate Expense (GCE), Net |
34 | 30 | ||||||||||||||||||
Charge for Litigation Settlement |
5 | | ||||||||||||||||||
Operating Profit (after GCE and Adjustments) |
106 | 53 | ||||||||||||||||||
Other Income (Expense), Net |
(33 | ) | (42 | ) | ||||||||||||||||
Income before Income Taxes |
$ | 73 | $ | 11 | ||||||||||||||||
Margins: |
||||||||||||||||||||
- Cabinets and Related Products |
-6.4 | % | -9.4 | % | ||||||||||||||||
- Plumbing Products |
13.1 | % | 12.7 | % | ||||||||||||||||
- Installation and Other Services |
-8.2 | % | -15.0 | % | ||||||||||||||||
- Decorative Architectural Products |
18.3 | % | 18.7 | % | ||||||||||||||||
- Other Specialty Products |
0.0 | % | -7.9 | % | ||||||||||||||||
- Total |
7.2 | % | 4.7 | % | ||||||||||||||||
- North America |
6.4 | % | 3.1 | % | ||||||||||||||||
- International, principally Europe |
9.8 | % | 9.6 | % | ||||||||||||||||
- Total, as above |
7.2 | % | 4.7 | % |
Notes: | ||
- Data exclude discontinued operations. | ||
- Operating (loss) profit and margins by segment and geographic area are before general corporate expense. | ||
- See 2011 Costs and Charges for Business Rationalizations and Other Initiatives page 5. |
Page 3
Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | ||||||||||||||||
Net Sales: |
||||||||||||||||||||
- Cabinets and Related Products |
$ | 330 | $ | 307 | ||||||||||||||||
- Plumbing Products |
761 | 710 | ||||||||||||||||||
- Installation and Other Services |
294 | 254 | ||||||||||||||||||
- Decorative Architectural Products |
492 | 375 | ||||||||||||||||||
- Other Specialty Products |
145 | 126 | ||||||||||||||||||
- Total |
$ | 2,022 | $ | 1,772 | ||||||||||||||||
- North America |
$ | 1,563 | $ | 1,333 | ||||||||||||||||
- International, principally Europe |
459 | 439 | ||||||||||||||||||
- Total, as above |
$ | 2,022 | $ | 1,772 | ||||||||||||||||
Operating (Loss) Profit: |
||||||||||||||||||||
- Cabinets and Related Products |
$ | (27 | ) | $ | (50 | ) | ||||||||||||||
- Plumbing Products |
95 | 84 | ||||||||||||||||||
- Installation and Other Services |
(26 | ) | (40 | ) | ||||||||||||||||
- Decorative Architectural Products |
90 | 69 | ||||||||||||||||||
- Other Specialty Products |
| (10 | ) | |||||||||||||||||
- Total |
$ | 132 | $ | 53 | ||||||||||||||||
- North America |
$ | 87 | $ | 11 | ||||||||||||||||
- International, principally Europe |
45 | 42 | ||||||||||||||||||
- Total, as above |
$ | 132 | $ | 53 | ||||||||||||||||
General Corporate Expense (GCE), Net |
36 | 32 | ||||||||||||||||||
Charge for Litigation Settlement |
5 | | ||||||||||||||||||
Operating Profit
(after GCE and
Adjustments) |
91 | 21 | ||||||||||||||||||
Other Income (Expense), Net |
(33 | ) | (42 | ) | ||||||||||||||||
Income (Loss) before Income Taxes |
$ | 58 | $ | (21 | ) | |||||||||||||||
Margins: |
||||||||||||||||||||
- Cabinets and Related Products |
-8.2 | % | -16.3 | % | ||||||||||||||||
- Plumbing Products |
12.5 | % | 11.8 | % | ||||||||||||||||
- Installation and Other Services |
-8.8 | % | -15.7 | % | ||||||||||||||||
- Decorative Architectural Products |
18.3 | % | 18.4 | % | ||||||||||||||||
- Other Specialty Products |
0.0 | % | -7.9 | % | ||||||||||||||||
- Total |
6.5 | % | 3.0 | % | ||||||||||||||||
- North America |
5.6 | % | 0.8 | % | ||||||||||||||||
- International, principally Europe |
9.8 | % | 9.6 | % | ||||||||||||||||
- Total, as above |
6.5 | % | 3.0 | % |
Notes: | ||
- Data exclude discontinued operations. | ||
- Operating (loss) profit and margins by segment and geographic area are before general corporate expense. | ||
- See 2011 Costs and Charges for Business Rationalizations and Other Initiatives page 5. |
Page 4
Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | ||||||||||||||||
Business Rationalizations & Other Initiatives |
||||||||||||||||||||
- Cabinets and Related Products |
$ | 6 | $ | 21 | ||||||||||||||||
- Plumbing Products |
5 | 6 | ||||||||||||||||||
- Installation and Other Services |
2 | 2 | ||||||||||||||||||
- Decorative Architectural Products |
| 1 | ||||||||||||||||||
- Other Specialty Products |
| | ||||||||||||||||||
- Total |
$ | 13 | $ | 30 | ||||||||||||||||
- North America |
$ | 13 | $ | 30 | ||||||||||||||||
- International, principally Europe |
| | ||||||||||||||||||
- Total, as above |
$ | 13 | $ | 30 | ||||||||||||||||
General Corporate Expense (GCE), Net |
2 | 2 | ||||||||||||||||||
- Total |
$ | 15 | $ | 32 | ||||||||||||||||
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
Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | ||||||||||||||||
Net Sales: |
||||||||||||||||||||
- Cabinets and Related Products |
$ | 1,464 | $ | 304 | $ | 357 | $ | 400 | $ | 403 | ||||||||||
- Plumbing Products |
2,692 | 661 | 686 | 682 | 663 | |||||||||||||||
- Installation and Other Services |
1,147 | 273 | 292 | 309 | 273 | |||||||||||||||
- Decorative Architectural Products |
1,693 | 336 | 463 | 505 | 389 | |||||||||||||||
- Other Specialty Products |
596 | 161 | 159 | 152 | 124 | |||||||||||||||
- Total |
$ | 7,592 | $ | 1,735 | $ | 1,957 | $ | 2,048 | $ | 1,852 | ||||||||||
- North America |
$ | 5,929 | $ | 1,312 | $ | 1,528 | $ | 1,659 | $ | 1,430 | ||||||||||
- International, principally Europe |
1,663 | 423 | 429 | 389 | 422 | |||||||||||||||
- Total, as above |
$ | 7,592 | $ | 1,735 | $ | 1,957 | $ | 2,048 | $ | 1,852 | ||||||||||
Operating (Loss) Profit: |
||||||||||||||||||||
- Cabinets and Related Products |
$ | (71 | ) | $ | (46 | ) | $ | (27 | ) | $ | 6 | $ | (4 | ) | ||||||
- Plumbing Products |
347 | 70 | 100 | 92 | 85 | |||||||||||||||
- Installation and Other Services |
(106 | ) | (25 | ) | (20 | ) | (21 | ) | (40 | ) | ||||||||||
- Decorative Architectural Products |
350 | 50 | 104 | 109 | 87 | |||||||||||||||
- Other Specialty Products |
19 | 3 | 11 | 11 | (6 | ) | ||||||||||||||
- Total |
$ | 539 | $ | 52 | $ | 168 | $ | 197 | $ | 122 | ||||||||||
- North America |
$ | 373 | $ | 21 | $ | 116 | $ | 160 | $ | 76 | ||||||||||
- International, principally Europe |
166 | 31 | 52 | 37 | 46 | |||||||||||||||
- Total, as above |
$ | 539 | $ | 52 | $ | 168 | $ | 197 | $ | 122 | ||||||||||
General Corporate Expense
(GCE), Net |
109 | 25 | 27 | 27 | 30 | |||||||||||||||
Operating Profit (after
GCE and Adjustments) |
430 | 27 | 141 | 170 | 92 | |||||||||||||||
Other Income (Expense),
Net |
(278 | ) | (55 | ) | (64 | ) | (103 | ) | (56 | ) | ||||||||||
(Loss) Income before
Income Taxes |
$ | 152 | $ | (28 | ) | $ | 77 | $ | 67 | $ | 36 | |||||||||
Margins: |
||||||||||||||||||||
- Cabinets and Related Products |
-4.8 | % | -15.1 | % | -7.6 | % | 1.5 | % | -1.0 | % | ||||||||||
- Plumbing Products |
12.9 | % | 10.6 | % | 14.6 | % | 13.5 | % | 12.8 | % | ||||||||||
- Installation and Other Services |
-9.2 | % | -9.2 | % | -6.8 | % | -6.8 | % | -14.7 | % | ||||||||||
- Decorative Architectural Products |
20.7 | % | 14.9 | % | 22.5 | % | 21.6 | % | 22.4 | % | ||||||||||
- Other Specialty Products |
3.2 | % | 1.9 | % | 6.9 | % | 7.2 | % | -4.8 | % | ||||||||||
- Total |
7.1 | % | 3.0 | % | 8.6 | % | 9.6 | % | 6.6 | % | ||||||||||
- North America |
6.3 | % | 1.6 | % | 7.6 | % | 9.6 | % | 5.3 | % | ||||||||||
- International, principally Europe |
10.0 | % | 7.3 | % | 12.1 | % | 9.5 | % | 10.9 | % | ||||||||||
- Total, as above |
7.1 | % | 3.0 | % | 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 8. |
Page 6
Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | ||||||||||||||||
Net Sales: |
||||||||||||||||||||
- Cabinets and Related Products |
$ | 1,464 | $ | 304 | $ | 357 | $ | 400 | $ | 403 | ||||||||||
- Plumbing Products |
2,692 | 661 | 686 | 682 | 663 | |||||||||||||||
- Installation and Other Services |
1,147 | 273 | 292 | 309 | 273 | |||||||||||||||
- Decorative Architectural Products |
1,693 | 336 | 463 | 505 | 389 | |||||||||||||||
- Other Specialty Products |
596 | 161 | 159 | 152 | 124 | |||||||||||||||
- Total |
$ | 7,592 | $ | 1,735 | $ | 1,957 | $ | 2,048 | $ | 1,852 | ||||||||||
- North America |
$ | 5,929 | $ | 1,312 | $ | 1,528 | $ | 1,659 | $ | 1,430 | ||||||||||
- International, principally Europe |
1,663 | 423 | 429 | 389 | 422 | |||||||||||||||
- Total, as above |
$ | 7,592 | $ | 1,735 | $ | 1,957 | $ | 2,048 | $ | 1,852 | ||||||||||
Operating (Loss) Profit: |
||||||||||||||||||||
- Cabinets and Related Products |
$ | (250 | ) | $ | (137 | ) | $ | (61 | ) | $ | (37 | ) | $ | (15 | ) | |||||
- Plumbing Products |
331 | 64 | 97 | 86 | 84 | |||||||||||||||
- Installation and Other Services |
(834 | ) | (747 | ) | (22 | ) | (23 | ) | (42 | ) | ||||||||||
- Decorative Architectural Products |
345 | 45 | 104 | 109 | 87 | |||||||||||||||
- Other Specialty Products |
19 | 3 | 11 | 11 | (6 | ) | ||||||||||||||
- Total |
$ | (389 | ) | $ | (772 | ) | $ | 129 | $ | 146 | $ | 108 | ||||||||
- North America |
$ | (543 | ) | $ | (800 | ) | $ | 79 | $ | 114 | $ | 64 | ||||||||
- International, principally Europe |
154 | 28 | 50 | 32 | 44 | |||||||||||||||
- Total, as above |
$ | (389 | ) | $ | (772 | ) | $ | 129 | $ | 146 | $ | 108 | ||||||||
General Corporate Expense (GCE),
Net |
110 | 26 | 27 | 27 | 30 | |||||||||||||||
Operating Profit (after GCE and Adjustments) |
(499 | ) | (798 | ) | 102 | 119 | 78 | |||||||||||||
Other Income (Expense), Net |
(278 | ) | (55 | ) | (64 | ) | (103 | ) | (56 | ) | ||||||||||
(Loss) Income before Income Taxes |
$ | (777 | ) | $ | (853 | ) | $ | 38 | $ | 16 | $ | 22 | ||||||||
Margins: |
||||||||||||||||||||
- Cabinets and Related Products |
-17.1 | % | -45.1 | % | -17.1 | % | -9.3 | % | -3.7 | % | ||||||||||
- Plumbing Products |
12.3 | % | 9.7 | % | 14.1 | % | 12.6 | % | 12.7 | % | ||||||||||
- Installation and Other Services |
-72.7 | % | -273.6 | % | -7.5 | % | -7.4 | % | -15.4 | % | ||||||||||
- Decorative Architectural Products |
20.4 | % | 13.4 | % | 22.5 | % | 21.6 | % | 22.4 | % | ||||||||||
- Other Specialty Products |
3.2 | % | 1.9 | % | 6.9 | % | 7.2 | % | -4.8 | % | ||||||||||
- Total |
-5.1 | % | -44.5 | % | 6.6 | % | 7.1 | % | 5.8 | % | ||||||||||
- North America |
-9.2 | % | -61.0 | % | 5.2 | % | 6.9 | % | 4.5 | % | ||||||||||
- International, principally Europe |
9.3 | % | 6.6 | % | 11.7 | % | 8.2 | % | 10.4 | % | ||||||||||
- Total, as above |
-5.1 | % | -44.5 | % | 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 8. |
Page 7
Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | ||||||||||||||||
Business Rationalizations & Other Initiatives |
||||||||||||||||||||
- Cabinets and Related Products |
$ | 179 | $ | 91 | $ | 34 | $ | 43 | $ | 11 | ||||||||||
- Plumbing Products |
15 | 5 | 3 | 6 | 1 | |||||||||||||||
- Installation and Other Services |
8 | 2 | 2 | 2 | 2 | |||||||||||||||
- Decorative Architectural Products |
5 | 5 | | | | |||||||||||||||
- Other Specialty Products |
| | | | | |||||||||||||||
- Total |
$ | 207 | $ | 103 | $ | 39 | $ | 51 | $ | 14 | ||||||||||
- North America |
$ | 195 | $ | 100 | $ | 37 | $ | 46 | $ | 12 | ||||||||||
- International, principally Europe |
12 | 3 | 2 | 5 | 2 | |||||||||||||||
- Total, as above |
$ | 207 | $ | 103 | $ | 39 | $ | 51 | $ | 14 | ||||||||||
General Corporate Expense (GCE), Net |
1 | 1 | | | | |||||||||||||||
- Total |
$ | 208 | $ | 104 | $ | 39 | $ | 51 | $ | 14 | ||||||||||
Goodwill and Other Intangible Assets Impairment |
||||||||||||||||||||
- Cabinets and Related Products |
$ | | $ | | $ | | $ | | $ | | ||||||||||
- Plumbing Products |
1 | 1 | | | | |||||||||||||||
- Installation and Other Services |
720 | 720 | | | | |||||||||||||||
- Decorative Architectural Products |
| | | | | |||||||||||||||
- Other Specialty Products |
| | | | | |||||||||||||||
- Total |
$ | 721 | $ | 721 | $ | | $ | | $ | | ||||||||||
- North America |
$ | 721 | $ | 721 | $ | | $ | | $ | | ||||||||||
- International, principally Europe |
| | | | | |||||||||||||||
- Total, as above |
$ | 721 | $ | 721 | $ | | $ | | $ | | ||||||||||
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
2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | Year | Qtr. 4 | Qtr. 3 | Qtr. 2 | Qtr. 1 | |||||||||||||||||||||||||||||||
Interest Expense |
$ | (64 | ) | $ | (63 | ) | $ | (251 | ) | $ | (63 | ) | $ | (63 | ) | $ | (67 | ) | $ | (58 | ) | |||||||||||||||||||
Income from Cash and Cash Investments |
1 | 2 | 6 | 2 | 2 | 1 | 1 | |||||||||||||||||||||||||||||||||
Other Interest Income |
| | 1 | | | | 1 | |||||||||||||||||||||||||||||||||
Realized Gains (Losses) from Financial
Investments, Net |
33 | 17 | 9 | 11 | (3 | ) | 1 | | ||||||||||||||||||||||||||||||||
Impairment Charges for Financial Investments |
| | (34 | ) | (1 | ) | | (33 | ) | | ||||||||||||||||||||||||||||||
Other, Net |
(3 | ) | 2 | (9 | ) | (4 | ) | | (5 | ) | | |||||||||||||||||||||||||||||
Total Other Income (Expense), Net |
$ | (33 | ) | $ | (42 | ) | $ | (278 | ) | $ | (55 | ) | $ | (64 | ) | $ | (103 | ) | $ | (56 | ) | |||||||||||||||||||
Notes: | ||
- | Data exclude discontinued operations. | |
- | Other, Net, in 2011 includes currency gains (losses) of $2 million and $(3) million for the first and second quarters, respectively. | |
- | Other, Net, in 2010 includes currency (losses) gains of ($1) million, ($5) million, $4 million and $ for the first, second, third and fourth quarters, respectively. |
Page 9
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current Assets: |
||||||||
Cash and Cash Investments |
$ | 1,611 | $ | 1,715 | ||||
Receivables |
1,188 | 888 | ||||||
Inventories |
901 | 732 | ||||||
Prepaid Expenses and Other |
131 | 129 | ||||||
Total Current Assets |
3,831 | 3,464 | ||||||
Property and Equipment, Net |
1,698 | 1,737 | ||||||
Goodwill |
2,399 | 2,383 | ||||||
Other Intangible Assets, Net |
266 | 269 | ||||||
Other Assets |
224 | 287 | ||||||
Total Assets |
$ | 8,418 | $ | 8,140 | ||||
Liabilities |
||||||||
Current Liabilities: |
||||||||
Notes Payable |
$ | 65 | $ | 66 | ||||
Accounts Payable |
921 | 602 | ||||||
Accrued Liabilities |
814 | 819 | ||||||
Total Current Liabilities |
1,800 | 1,487 | ||||||
Long-Term Debt |
4,027 | 4,032 | ||||||
Deferred Income Taxes and Other |
1,054 | 1,039 | ||||||
Total Liabilities |
6,881 | 6,558 | ||||||
Shareholders Equity |
1,537 | 1,582 | ||||||
Total Liabilities and
Shareholders Equity |
$ | 8,418 | $ | 8,140 | ||||
Page 10
Three Months Ended | ||||||||||||
June 30, | ||||||||||||
2011 | 2010 | % Δ | ||||||||||
Net Sales, As Reported |
$ | 2,022 | $ | 2,048 | -1 | % | ||||||
- Acquisitions |
| | ||||||||||
- Currency Translation |
(54 | ) | | |||||||||
Net Sales, Excluding Acquisitions and Currency Translation |
$ | 1,968 | $ | 2,048 | -4 | % | ||||||
North America Net Sales, As Reported |
$ | 1,563 | $ | 1,659 | -6 | % | ||||||
- Acquisitions |
| |||||||||||
- Currency Translation |
(4 | ) | | |||||||||
North America Net Sales, Excluding Acquisitions and Currency Translation |
$ | 1,559 | $ | 1,659 | -6 | % | ||||||
International Net Sales, As Reported |
$ | 459 | $ | 389 | 18 | % | ||||||
- Acquisitions |
| | ||||||||||
- Currency Translation |
(50 | ) | | |||||||||
International Net Sales, Excluding Acquisitions and Currency Translation |
$ | 409 | $ | 389 | 5 | % | ||||||
Six Months Ended | ||||||||||||
June 30, | ||||||||||||
2011 | 2010 | % Δ | ||||||||||
As Reported |
$ | 3,794 | $ | 3,900 | -3 | % | ||||||
- Acquisitions |
| | ||||||||||
- Currency Translation |
(54 | ) | | |||||||||
Net Sales, Excluding Acquisitions and Currency Translation |
$ | 3,740 | $ | 3,900 | -4 | % | ||||||
North America Net Sales, As Reported |
$ | 2,896 | $ | 3,089 | -6 | % | ||||||
- Acquisitions |
| |||||||||||
- Currency Translation |
(7 | ) | | |||||||||
North America Net Sales, Excluding Acquisitions and Currency Translation |
$ | 2,889 | $ | 3,089 | -6 | % | ||||||
International Net Sales, As Reported |
$ | 898 | $ | 811 | 11 | % | ||||||
- Acquisitions |
| | ||||||||||
- Currency Translation |
(47 | ) | | |||||||||
International Net Sales, Excluding Acquisitions and Currency Translation |
$ | 851 | $ | 811 | 5 | % | ||||||
Page 11
Three Months Ended June 30, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
$ | Margin | $ | Margin | |||||||||||||
Operating Profit, As Reported |
$ | 91 | 4.5 | % | $ | 119 | 5.8 | % | ||||||||
Business Rationalizations and Other Initiatives |
15 | 51 | ||||||||||||||
Charge for Litigation Settlement |
5 | | ||||||||||||||
Operating Profit, As Reconciled |
$ | 111 | 5.5 | % | $ | 170 | 8.3 | % | ||||||||
12 Months Ended June 30, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
$ | Margin | $ | Margin | |||||||||||||
Operating (Loss) Profit, As Reported |
$ | (584 | ) | -7.8 | % | $ | 138 | 1.8 | % | |||||||
Impairment
Charges for Goodwill and Other Intangible Assets |
721 | 262 | ||||||||||||||
Business Rationalizations and Other Initiatives |
190 | 113 | ||||||||||||||
Charge for Litigation Settlement, after tax |
3 | 5 | ||||||||||||||
Operating Profit, As Reconciled |
$ | 330 | 4.4 | % | $ | 518 | 6.6 | % | ||||||||
Page 12