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 29, 2012
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
Registrants 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:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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 29, 2012 reporting Masco Corporations financial results for the third quarter of 2012 and certain other information and supplemental information prepared for use in connection with the financial results for the third quarter of 2012. On October 30, 2012, Masco Corporation will hold an investor conference call and web cast to discuss financial results for the third quarter of 2012.
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 29, 2012 reporting Masco Corporations financial results for the third quarter of 2012 and certain other information and supplemental information prepared for use in connection with the financial results for the third quarter of 2012. |
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 29, 2012
EXHIBIT INDEX
99 | Press Release of Masco Corporation dated October 29, 2012 reporting Masco Corporations financial results for the third quarter of 2012 and certain other information and supplemental information prepared for use in connection with the financial results for the third quarter of 2012. |
Exhibit 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 2012 RESULTS
2012 Third Quarter Commentary
| Net sales of $2.0 billion were flat compared to the third quarter of 2011. Excluding the impact of currency translation, net sales increased 2%. |
| 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 third quarter of 2011, were as follows: |
| Gross profit margins improved to 26.5 percent compared to 25.4 percent |
| Operating profit margins improved to 7.2 percent compared to 6.5 percent |
| Income from continuing operations was $.13 per common share compared to $.09 per common share |
| Income from continuing operations, as reported, was $.06 per common share compared to $.16 per common share for the third quarter of 2011. |
| Working capital as a percent of sales was 14.8 percent at September 30, 2012, the same as at September 30, 2011. |
| We ended the third quarter of 2012 with approximately $1.2 billion of cash. |
Taylor, Mich., (October 29, 2012) Masco Corporation (NYSE: MAS) today reported that its net sales of $2 billion for the third quarter ended September 30, 2012 were flat compared to the third quarter of 2011. North American sales increased four percent and International sales decreased twelve percent. In local currencies, International sales decreased three percent compared with the third quarter of 2011.
Income from continuing operations was $.13 per common share and $.09 per common share for the third quarters of 2012 and 2011, respectively, excluding the items in Exhibit A and with a normalized tax rate of 36 percent. Including these items, income from continuing operations, as reported was $.06 per common share compared to $.16 per common share for the third quarter of 2011.
Our top line in the third quarter benefitted from the increase in new home construction activity in North America, new product introductions, and from selling price increases, said Mascos CEO, Tim Wadhams. These positives offset both the slow economic growth in North America and the continued weakening of Euro-Zone economies that we anticipated for the second half of 2012. On an adjusted basis, our margins improved on flat sales to 7.2 percent compared to 6.5 percent in third quarter 2011, driven by our focus on total cost productivity and improved price/commodity relationships. We are pleased with that outcome.
During the third quarters of 2012 and 2011, we incurred pre-tax costs and charges of $28 million and $13 million, respectively, related to business rationalization initiatives. We expect full year 2012 business rationalization charges to be approximately $65 million. In the Other Specialty Products segment, as reported, one of the businesses was negatively impacted in the third quarter by a $12 million adjustment to its warranty expense as a result of the periodic review of warranty claim activity, sales volume, demographics and the estimated cost to service anticipated claims.
1
We continue to make progress on our strategic initiatives, which include leveraging our brands, reducing our costs, improving our Installation and Cabinet segments and strengthening our balance sheet. We are encouraged by the continued strength in new home construction activity, driven by the stabilization and improvement of home prices in many areas of the U.S., increasing affordability and demographic trends. These factors should continue to drive demand for new homes over the next several years. Increased new home construction activity benefits virtually all of our businesses, particularly our Installation segment which has improved significantly this year, almost breaking even in the third quarter and which we expect to be profitable in the fourth quarter. In our Cabinet segment, we announced actions during the quarter, including the closure of a manufacturing location and a headcount reduction, which we expect will improve our efficiency and reduce costs by approximately $20 million on an annual basis. While we are committed to returning our Cabinet segment to profitability, we anticipate that big ticket remodeling will remain weak, even though we continue to see modest improvement in overall repair and remodeling activity, said Tim Wadhams.
Headquartered in Taylor, Michigan, Masco Corporation is one of the worlds 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 2012 third quarter supplemental material, including a presentation in PDF format, will be distributed after the market closes on October 29, 2012 and will be available on the Companys website at www.masco.com.
A conference call regarding information contained in this release is scheduled for Tuesday, October 30, 2012 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 (877) 550-4056 and from outside the U.S. at (706) 679-3614. Please use the conference identification number 22434422. The conference call will be webcast simultaneously and in its entirety through the Companys website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Companys website.
A replay of the call will be available on Mascos website or by phone by dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use the conference identification number 22434422. The telephone replay will be available approximately two hours after the end of the call and continue through November 15, 2012.
Statements contained in this press release that reflect our views about our future performance constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as believe, anticipate, appear, may, will, should, intend, plan, estimate, expect, assume, seek, forecast, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by our reliance on new home construction and home improvement, our reliance on key customers, the cost and availability of raw materials, uncertainty in the international economy, shifts in consumer preferences and purchasing practices, and our ability to achieve cost savings through business rationalizations and other initiatives. These and other factors are discussed in detail in Item 1A, Risk Factors in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Our forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.
2
The Company believes that the non-GAAP performance measures and ratios that are contained herein, 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 Companys reported results under accounting principles generally accepted in the United States. Additional information about the Company is contained in the Companys filings with the Securities and Exchange Commission and is available on Mascos Web site at www.masco.com.
# # #
3
MASCO CORPORATION
Condensed Consolidated Statements of OperationsUnaudited
For the Three Months and Nine Months Ended September 30, 2012 and 2011
(dollars in millions)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net sales |
$ | 1,976 | $ | 1,978 | $ | 5,855 | $ | 5,729 | ||||||||
Cost of sales |
1,476 | 1,483 | 4,345 | 4,277 | ||||||||||||
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|||||||||
Gross profit |
500 | 495 | 1,510 | 1,452 | ||||||||||||
Selling, general and administrative expenses |
398 | 380 | 1,186 | 1,210 | ||||||||||||
Charge for litigation settlements, net |
1 | 1 | 74 | 6 | ||||||||||||
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|
|||||||||
Operating profit |
101 | 114 | 250 | 236 | ||||||||||||
Other income (expense), net |
(58 | ) | (60 | ) | (189 | ) | (184 | ) | ||||||||
Gains from financial investments, net |
2 | 19 | 18 | 69 | ||||||||||||
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|||||||||
Income from continuing operations before income taxes |
45 | 73 | 79 | 121 | ||||||||||||
Income tax expense |
14 | 4 | 48 | 55 | ||||||||||||
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|||||||||
Income from continuing operations |
31 | 69 | 31 | 66 | ||||||||||||
Loss from discontinued operations |
(7 | ) | (20 | ) | (30 | ) | (31 | ) | ||||||||
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|||||||||
Net income |
24 | 49 | 1 | 35 | ||||||||||||
Less: Net income attributable to non-controlling interest |
9 | 13 | 28 | 37 | ||||||||||||
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|||||||||
Net income (loss) attributable to Masco Corporation |
$ | 15 | $ | 36 | $ | (27 | ) | $ | (2 | ) | ||||||
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Income (loss) per common share attributable to Masco Corporation (diluted): |
||||||||||||||||
Income from continuing operations |
$ | 0.06 | $ | 0.16 | $ | | $ | 0.08 | ||||||||
Loss from discontinued operations |
(0.02 | ) | (0.06 | ) | (0.08 | ) | (0.09 | ) | ||||||||
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Net income (loss) |
$ | 0.04 | $ | 0.10 | $ | (0.08 | ) | $ | (0.01 | ) | ||||||
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Average diluted common shares outstanding |
350 | 348 | 350 | 349 | ||||||||||||
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|||||||||
Amounts attributable to Masco Corporation: |
||||||||||||||||
Income from continuing operations |
$ | 22 | $ | 56 | $ | 3 | $ | 29 | ||||||||
Loss from discontinued operations |
(7 | ) | (20 | ) | (30 | ) | (31 | ) | ||||||||
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Net income (loss) attributable to Masco Corporation |
$ | 15 | $ | 36 | $ | (27 | ) | $ | (2 | ) | ||||||
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|
Historical information is available on our website.
4
MASCO CORPORATION
Exhibit A: ReconciliationsUnaudited
For the Three Months Ended September 30, 2012 and 2011
(dollars in millions, except EPS)
2012 | 2011 | |||||||
Gross Profit and Operating Profit Reconciliations |
||||||||
Net sales |
$ | 1,976 | $ | 1,978 | ||||
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|
|
|||||
Gross profit, as reported |
$ | 500 | $ | 495 | ||||
Rationalization charges |
11 | 8 | ||||||
Other Specialty ProductsWarranty |
12 | | ||||||
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|
|||||
Gross profit, as adjusted |
$ | 523 | $ | 503 | ||||
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|
|||||
Gross margin, as reported |
25.3 | % | 25.0 | % | ||||
Gross margin, as adjusted |
26.5 | % | 25.4 | % | ||||
Operating profit, as reported |
$ | 101 | $ | 114 | ||||
Rationalization charges |
28 | 13 | ||||||
Charge for litigation settlements, net |
1 | 1 | ||||||
Other Specialty ProductsWarranty |
12 | | ||||||
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|
|||||
Operating profit, as adjusted |
$ | 142 | $ | 128 | ||||
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|
|||||
Operating margin, as reported |
5.1 | % | 5.8 | % | ||||
Operating margin, as adjusted |
7.2 | % | 6.5 | % | ||||
Earnings Per Common Share Reconciliation |
||||||||
Income from continuing operations, before income taxes, as reported |
$ | 45 | $ | 73 | ||||
Rationalization charges |
28 | 13 | ||||||
Charge for litigation settlements, net |
1 | 1 | ||||||
Other Specialty ProductsWarranty |
12 | | ||||||
(Gains) from financial investments, net |
(2 | ) | (19 | ) | ||||
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|
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|
|||||
Income from continuing operations, before income taxes, as adjusted |
84 | 68 | ||||||
Tax at 36% rate |
(30 | ) | (24 | ) | ||||
Less: Net income attributable to non-controlling interest |
9 | 13 | ||||||
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|
|||||
Net income, as adjusted |
$ | 45 | $ | 31 | ||||
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|||||
Income per common share, as adjusted |
$ | 0.13 | $ | 0.09 | ||||
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|||||
Shares outstanding |
350 | 348 | ||||||
|
|
|
|
Historical information is available on our website.
5
MASCO CORPORATION
Exhibit B: ReconciliationsUnaudited
For the Nine Months Ended September 30, 2012 and 2011
(dollars in millions, except EPS)
2012 | 2011 | |||||||
Gross Profit and Operating Profit Reconciliations |
||||||||
Net sales |
$ | 5,855 | $ | 5,729 | ||||
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|
|
|
|||||
Gross profit, as reported |
$ | 1,510 | $ | 1,452 | ||||
Rationalization charges |
25 | 43 | ||||||
(Gain) from sale of fixed assets |
(5 | ) | | |||||
Other Specialty ProductsWarranty |
12 | | ||||||
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|
|||||
Gross profit, as adjusted |
$ | 1,542 | $ | 1,495 | ||||
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|
|||||
Gross margin, as reported |
25.8 | % | 25.3 | % | ||||
Gross margin, as adjusted |
26.3 | % | 26.1 | % | ||||
Operating profit, as reported |
$ | 250 | $ | 236 | ||||
Rationalization charges |
47 | 60 | ||||||
(Gain) from sale of fixed assets |
(5 | ) | | |||||
Charge for litigation settlements, net |
74 | 6 | ||||||
Other Specialty ProductsWarranty |
12 | | ||||||
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|
|||||
Operating profit, as adjusted |
$ | 378 | $ | 302 | ||||
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|
|||||
Operating margin, as reported |
4.3 | % | 4.1 | % | ||||
Operating margin, as adjusted |
6.5 | % | 5.3 | % | ||||
Earnings Per Common Share Reconciliation |
||||||||
Income from continuing operations, before income taxes, as reported |
$ | 79 | $ | 121 | ||||
Rationalization charges |
47 | 60 | ||||||
(Gain) from sale of fixed assets |
(5 | ) | | |||||
Charge for litigation settlements, net |
74 | 6 | ||||||
Other Specialty ProductsWarranty |
12 | | ||||||
Interest carry costs |
7 | | ||||||
(Gains) from financial investments, net |
(18 | ) | (69 | ) | ||||
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|
|||||
Income from continuing operations, before income taxes, as adjusted |
196 | 118 | ||||||
Tax at 36% rate |
(71 | ) | (42 | ) | ||||
Less: Net income attributable to non-controlling interest |
28 | 37 | ||||||
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|||||
Net income, as adjusted |
$ | 97 | $ | 39 | ||||
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Income per common share, as adjusted |
$ | 0.28 | $ | 0.11 | ||||
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|||||
Shares outstanding |
350 | 349 | ||||||
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|
|
Historical information is available on our website.
6
MASCO CORPORATION
Condensed Consolidated Balance Sheets and
Other Financial DataUnaudited
(dollars in millions)
Balance Sheet | September 30, 2012 |
December 31, 2011 |
||||||
Assets | ||||||||
Current Assets: |
||||||||
Cash and Cash Investments |
$ | 1,166 | $ | 1,656 | ||||
Receivables |
1,156 | 914 | ||||||
Inventories |
830 | 769 | ||||||
Prepaid Expenses and Other |
83 | 70 | ||||||
Assets Held for Sale |
20 | 20 | ||||||
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|||||
Total Current Assets |
3,255 | 3,429 | ||||||
Property and Equipment, Net |
1,484 | 1,567 | ||||||
Goodwill |
1,891 | 1,891 | ||||||
Other Intangible Assets |
193 | 196 | ||||||
Other Assets |
191 | 209 | ||||||
Assets Held for Sale |
2 | 5 | ||||||
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Total Assets |
$ | 7,016 | $ | 7,297 | ||||
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Liabilities |
||||||||
Current Liabilities: |
||||||||
Notes Payable |
$ | 207 | $ | 803 | ||||
Accounts Payable |
866 | 770 | ||||||
Accrued Liabilities |
884 | 782 | ||||||
Liabilities Held for Sale |
10 | 8 | ||||||
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Total Current Liabilities |
1,967 | 2,363 | ||||||
Long-Term Debt |
3,422 | 3,222 | ||||||
Deferred Income Taxes and Other |
953 | 970 | ||||||
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Total Liabilities |
6,342 | 6,555 | ||||||
Shareholders Equity |
674 | 742 | ||||||
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Total Liabilities and Shareholders Equity |
$ | 7,016 | $ | 7,297 | ||||
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Year To Date | ||||||||
Other Financial Data | September 30, 2012 |
September 30, 2011 |
||||||
Working Capital Days |
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Receivable Days |
51 | 48 | ||||||
Inventory Days |
54 | 56 | ||||||
Payable Days |
65 | 62 | ||||||
Working Capital |
$ | 1,120 | $ | 1,117 | ||||
Working Capital as a % of Sales (LTM) |
14.8 | % | 14.8 | % | ||||
Dividend Payments |
$ | 80 | $ | 80 | ||||
Cash Paid for Share Repurchases |
$ | 8 | $ | 30 | ||||
CAPEX |
$ | 80 | $ | 106 | ||||
Average diluted common shares outstanding |
350 | 349 |
Historical information is available on our website.
7
MASCO CORPORATION
Quarterly Segment DataUnaudited
For the Three Months and Nine Months Ended September 30, 2012 and 2011
(dollars in millions)
Q3 2012 |
Q3 2011 |
Change | YTD 2012 |
YTD 2011 |
Change | |||||||||||||||||||
Cabinets and Related Products |
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Net sales |
$ | 291 | $ | 307 | -5 | % | $ | 900 | $ | 944 | -5 | % | ||||||||||||
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Operating loss, as reported |
$ | (35 | ) | $ | (34 | ) | $ | (70 | ) | $ | (111 | ) | ||||||||||||
Operating margin, as reported |
-12.0 | % | -11.1 | % | -7.8 | % | -11.8 | % | ||||||||||||||||
Rationalization charges |
7 | 7 | 11 | 14 | ||||||||||||||||||||
Accelerated depreciation related to plant closures |
2 | | 2 | 20 | ||||||||||||||||||||
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Operating loss, as adjusted |
(26 | ) | (27 | ) | (57 | ) | (77 | ) | ||||||||||||||||
Operating margin, as adjusted |
-8.9 | % | -8.8 | % | -6.3 | % | -8.2 | % | ||||||||||||||||
Depreciation and amortization |
13 | 12 | 38 | 43 | ||||||||||||||||||||
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EBITDA, as adjusted |
$ | (13 | ) | $ | (15 | ) | $ | (19 | ) | $ | (34 | ) | ||||||||||||
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Plumbing Products |
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Net sales |
$ | 736 | $ | 768 | -4 | % | $ | 2,216 | $ | 2,239 | -1 | % | ||||||||||||
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Operating profit, as reported |
$ | 75 | $ | 91 | 242 | 270 | ||||||||||||||||||
Operating margin, as reported |
10.2 | % | 11.8 | % | 10.9 | % | 12.1 | % | ||||||||||||||||
Rationalization charges |
5 | 1 | 8 | 9 | ||||||||||||||||||||
Accelerated depreciation related to plant closures |
1 | | 10 | 3 | ||||||||||||||||||||
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Operating profit, as adjusted |
81 | 92 | 260 | 282 | ||||||||||||||||||||
Operating margin, as adjusted |
11.0 | % | 12.0 | % | 11.7 | % | 12.6 | % | ||||||||||||||||
Depreciation and amortization |
15 | 15 | 44 | 46 | ||||||||||||||||||||
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EBITDA, as adjusted |
$ | 96 | $ | 107 | $ | 304 | $ | 328 | ||||||||||||||||
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Installation and Other Services |
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Net sales |
$ | 312 | $ | 287 | 9 | % | $ | 886 | $ | 792 | 12 | % | ||||||||||||
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Operating loss, as reported |
$ | (2 | ) | $ | (15 | ) | $ | (25 | ) | $ | (71 | ) | ||||||||||||
Operating margin, as reported |
-0.6 | % | -5.2 | % | -2.8 | % | -9.0 | % | ||||||||||||||||
Rationalization charges |
1 | 2 | 1 | 6 | ||||||||||||||||||||
Accelerated depreciation related to plant closures |
| | | | ||||||||||||||||||||
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Operating loss, as adjusted |
(1 | ) | (13 | ) | (24 | ) | (65 | ) | ||||||||||||||||
Operating margin, as adjusted |
-0.3 | % | -4.5 | % | -2.7 | % | -8.2 | % | ||||||||||||||||
Depreciation and amortization |
7 | 8 | 22 | 24 | ||||||||||||||||||||
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EBITDA, as adjusted |
$ | 6 | $ | (5 | ) | $ | (2 | ) | $ | (41 | ) | |||||||||||||
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Historical information is available on our website.
8
MASCO CORPORATION
Quarterly Segment DataUnaudited
For the Three Months and Nine Months Ended September 30, 2012 and 2011
(dollars in millions)
Q3 | Q3 | YTD | YTD | |||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||||||||||
Decorative Architectural Products |
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Net sales |
$ | 481 | $ | 455 | 6 | % | $ | 1,432 | $ | 1,322 | 8 | % | ||||||||||||
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Operating profit, as reported |
$ | 96 | $ | 88 | $ | 264 | $ | 247 | ||||||||||||||||
Operating margin, as reported |
20.0 | % | 19.3 | % | 18.4 | % | 18.7 | % | ||||||||||||||||
Rationalization charges |
| | | 1 | ||||||||||||||||||||
Accelerated depreciation related to plant closures |
| | | | ||||||||||||||||||||
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Operating profit, as adjusted |
96 | 88 | 264 | 248 | ||||||||||||||||||||
Operating margin, as adjusted |
20.0 | % | 19.3 | % | 18.4 | % | 18.8 | % | ||||||||||||||||
Depreciation and amortization |
4 | 4 | 12 | 12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
EBITDA, as adjusted |
$ | 100 | $ | 92 | $ | 276 | $ | 260 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Other Specialty Products |
||||||||||||||||||||||||
Net sales |
$ | 156 | $ | 161 | -3 | % | $ | 421 | $ | 432 | -3 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating profit, as reported |
$ | 3 | $ | 12 | $ | 4 | $ | 2 | ||||||||||||||||
Operating margin, as reported |
1.9 | % | 7.5 | % | 1.0 | % | 0.5 | % | ||||||||||||||||
Rationalization charges |
1 | | 1 | | ||||||||||||||||||||
Accelerated depreciation related to plant closures |
| 2 | | 2 | ||||||||||||||||||||
Other |
12 | | 12 | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating profit, as adjusted |
16 | 14 | 17 | 4 | ||||||||||||||||||||
Operating margin, as adjusted |
10.3 | % | 8.7 | % | 4.0 | % | 0.9 | % | ||||||||||||||||
Depreciation and amortization |
5 | 5 | 16 | 17 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
EBITDA, as adjusted |
$ | 21 | $ | 19 | $ | 33 | $ | 21 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
||||||||||||||||||||||||
Net sales |
$ | 1,976 | $ | 1,978 | 0 | % | $ | 5,855 | $ | 5,729 | 2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income, as reportedsegment |
$ | 137 | $ | 142 | $ | 415 | $ | 337 | ||||||||||||||||
General corporate expense (GCE) |
(35 | ) | (27 | ) | (96 | ) | (95 | ) | ||||||||||||||||
Gain from sale of fixed assets |
| | 5 | | ||||||||||||||||||||
Charge for litigation settlements, net |
(1 | ) | (1 | ) | (74 | ) | (6 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income, as reported |
101 | 114 | 250 | 236 | ||||||||||||||||||||
Operating margin, as reported |
5.1 | % | 5.8 | % | 4.3 | % | 4.1 | % | ||||||||||||||||
Rationalization chargessegment |
14 | 10 | 21 | 30 | ||||||||||||||||||||
Accelerated depreciationsegment |
3 | 2 | 12 | 25 | ||||||||||||||||||||
Rationalization chargesGCE |
11 | 1 | 14 | 2 | ||||||||||||||||||||
Accelerated depreciationGCE |
| | | 3 | ||||||||||||||||||||
(Gain) from sale of fixed assets |
| | (5 | ) | | |||||||||||||||||||
Charge for litigation settlements, net |
1 | 1 | 74 | 6 | ||||||||||||||||||||
Other |
12 | | 12 | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income, as adjusted |
142 | 128 | 378 | 302 | ||||||||||||||||||||
Operating margin, as adjusted |
7.2 | % | 6.5 | % | 6.5 | % | 5.3 | % | ||||||||||||||||
Depreciation and amortizationsegment |
44 | 44 | 132 | 142 | ||||||||||||||||||||
Depreciation and amortizationnon-operating |
3 | 5 | 10 | 18 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
EBITDA, as adjusted |
$ | 189 | $ | 177 | $ | 520 | $ | 462 | ||||||||||||||||
|
|
|
|
|
|
|
|
Historical information is available on our website.
9
MASCO CORPORATION
Quarterly North American and International DataUnaudited
For the Three Months and Nine Months Ended September 30, 2012 and 2011
(dollars in millions)
Q3 2012 |
Q3 2011 |
Change | YTD 2012 |
YTD 2011 |
Change | |||||||||||||||||||
North American |
||||||||||||||||||||||||
Net sales |
$ | 1,553 | $ | 1,496 | 4 | % | $ | 4,571 | $ | 4,349 | 5 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating profit, as reported |
$ | 112 | $ | 92 | $ | 325 | $ | 200 | ||||||||||||||||
Operating margin, as reported |
7.2 | % | 6.1 | % | 7.1 | % | 4.6 | % | ||||||||||||||||
Rationalization charges |
9 | 9 | 15 | 28 | ||||||||||||||||||||
Accelerated depreciation related to plant closures |
2 | 2 | 11 | 25 | ||||||||||||||||||||
Other |
12 | | 12 | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating loss, as adjusted |
135 | 103 | 363 | 253 | ||||||||||||||||||||
Operating margin, as adjusted |
8.7 | % | 6.9 | % | 7.9 | % | 5.8 | % | ||||||||||||||||
Depreciation and amortization |
32 | 31 | 96 | 104 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
EBITDA, as adjusted |
$ | 167 | $ | 134 | $ | 459 | $ | 357 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
International |
||||||||||||||||||||||||
Net sales |
$ | 423 | $ | 482 | -12 | % | $ | 1,284 | $ | 1,380 | -7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating profit, as reported |
$ | 25 | $ | 50 | 90 | 137 | ||||||||||||||||||
Operating margin, as reported |
5.9 | % | 10.4 | % | 7.0 | % | 9.9 | % | ||||||||||||||||
Rationalization charges |
5 | 1 | 6 | 2 | ||||||||||||||||||||
Accelerated depreciation related to plant closures |
1 | | 1 | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating profit, as adjusted |
31 | 51 | 97 | 139 | ||||||||||||||||||||
Operating margin, as adjusted |
7.3 | % | 10.6 | % | 7.6 | % | 10.1 | % | ||||||||||||||||
Depreciation and amortization |
12 | 13 | 36 | 38 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
EBITDA, as adjusted |
$ | 43 | $ | 64 | $ | 133 | $ | 177 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
||||||||||||||||||||||||
Net sales |
$ | 1,976 | $ | 1,978 | 0 | % | $ | 5,855 | $ | 5,729 | 2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income, as reportedsegment |
$ | 137 | $ | 142 | $ | 415 | $ | 337 | ||||||||||||||||
General corporate expense (GCE) |
(35 | ) | (27 | ) | (96 | ) | (95 | ) | ||||||||||||||||
Gain from sale of fixed assets |
| | 5 | | ||||||||||||||||||||
Charge for litigation settlements, net |
(1 | ) | (1 | ) | (74 | ) | (6 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income, as reported |
101 | 114 | 250 | 236 | ||||||||||||||||||||
Operating margin, as reported |
5.1 | % | 5.8 | % | 4.3 | % | 4.1 | % | ||||||||||||||||
Rationalization chargessegment |
14 | 10 | 21 | 30 | ||||||||||||||||||||
Accelerated depreciationsegment |
3 | 2 | 12 | 25 | ||||||||||||||||||||
Rationalization chargesGCE |
11 | 1 | 14 | 2 | ||||||||||||||||||||
Accelerated depreciationGCE |
| | | 3 | ||||||||||||||||||||
(Gain) from sale of fixed assets |
| | (5 | ) | | |||||||||||||||||||
Charge for litigation settlements, net |
1 | 1 | 74 | 6 | ||||||||||||||||||||
Other |
12 | | 12 | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income, as adjusted |
142 | 128 | 378 | 302 | ||||||||||||||||||||
Operating margin, as adjusted |
7.2 | % | 6.5 | % | 6.5 | % | 5.3 | % | ||||||||||||||||
Depreciation and amortizationsegment |
44 | 44 | 132 | 142 | ||||||||||||||||||||
Depreciation and amortizationnon-operating |
3 | 5 | 10 | 18 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
EBITDA, as adjusted |
$ | 189 | $ | 177 | $ | 520 | $ | 462 | ||||||||||||||||
|
|
|
|
|
|
|
|
Historical information is available on our website.
10