Masco Corporation (MAS) reported earnings from continuing operations of 14 cents per common share in the third quarter of 2009, compared to income from continuing operations of 9 cents per common share in the third quarter of 2008. This was higher than the Zacks consensus Estimate of 8 cents per share.
Net sales from continuing operations for the quarter ended Sept. 30, 2009 declined 17% to $2.1 billion, compared with $2.5 billion for the third quarter of 2008. North American sales declined 17% and International sales declined 13%. In local currencies, International sales declined 7% compared with the third quarter of 2008.
The third quarter of 2009 results were adversely affected by significantly lower sales volume of new home construction products and services, as well as a decline in consumer spending for home improvement products in both North American and International markets. The negative market conditions were partially offset by increased sales volume of paints and stains, the improved relationship between selling prices and commodity costs and benefits associated with business rationalizations and other cost savings initiatives.
The company continues to estimate that 2009 housing starts will decline 40% to approximately 550,000 units. It also anticipates that consumer spending for home improvement products in North American and International markets will continue at reduced levels in the near-term.
Masco currently estimates that its 2009 sales will decline approximately 18% to 20% compared to 2008. The company’s previous guidance estimated that its full-year 2009 sales decline would be 18 to 22% compared to 2008.
The company currently estimates that its 2009 full-year income from continuing operations will range between 5 cents to negative 5 cents per common share. The current Zacks Consensus Estimate stands at 7 cents per share.
Masco Corporation manufactures, distributes and installs home improvement and building products in North America and Europe. Headquartered in Taylor, MI, Masco is one of the world’s leading manufacturers of these products, as well as a leading provider of services that include the installation of insulation.
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