Masco Corporation Reports Sales and Earnings for 2001
TAYLOR, Mich., Feb. 15 Masco Corporation today reported that net sales for the year ended December 31, 2001, aided by acquisitions, increased 15 percent to over $8.3 billion compared with $7.2 billion for 2000.
The Company reported net income of $199 million and earnings per common share of $.42 for 2001. Excluding a $530 million pre-tax, non-cash charge recorded in the 2001 third quarter related to the write-down of certain long- term investments, principally securities of Furnishings International Inc., net income for the year 2001 was $543 million or $1.14 per common share.
Fourth quarter 2001 net sales increased 22 percent to $2.1 billion compared with $1.7 billion in the 2000 fourth quarter. Net income for the fourth quarter was $128 million or $.26 per common share. Net income in the 2000 fourth quarter was $45 million or $.10 per common share, including the effect of a $94 million after-tax charge, or $.21 per common share, for the write-down of certain non-operating assets and the planned disposition of certain businesses.
Masco Chairman and Chief Executive Officer Richard A. Manoogian commented, ``In recent months, Masco has experienced an improvement in sales and incoming orders. If this present positive trend continues, Masco believes, as previously announced, that 2002 first quarter earnings should approximate between $.25 and $.30 per common share. Since the first quarter is seasonally one of the Company's lowest quarters, the Company also believes that earnings per common share in the last three quarters of 2002 should average higher than the first quarter results. This should result in significantly improved earnings for the full year 2002.''
A conference call regarding the Company's 2001 sales and earnings is scheduled for Friday, February 15, 2002 at 11:00 a.m. EST. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 913-981-5522 (confirmation #614284). The conference call will be webcast simultaneously on the Company's website at www.masco.com and supplemental material will also be available. A replay of the call will be available on Masco's website or by phone by dialing 719-457-0820 (replay access code #614284) approximately two hours after the end of the call and will continue through February 22, 2002.
Masco Corporation's press releases and other information are available through the Company's toll free number, 1-800-MAS-NEWS or you may visit Masco's website at www.masco.com .
Masco Corporation is one of the world's leading manufacturers of faucets, cabinets, architectural coatings, locks and other consumer brand-name home improvement and building products.
Statements in this press release may include certain forward-looking statements regarding Masco's future sales and earnings growth potential. Actual results may vary because of various factors including external factors over which Masco has no control. Additional information about our products, markets and conditions, which could affect future performance, is contained in the Company's filings with the Securities and Exchange Commission and is available on Masco's website at www.masco.com .
MASCO CORPORATION
CONDENSED STATEMENT OF INCOME FOR THREE MONTHS & TWELVE MONTHS ENDED
12/31/01 & 12/31/00
Three Months Ended Twelve Months Ended
December 31 December 31
2001 2000 2001 2000
Net Sales $2,115,000 $1,733,000 $8,358,000 $7,243,000
Cost of Sales 1,481,690 1,221,040 5,806,800 4,903,360
Gross Profit 633,310 511,960 2,551,200 2,339,640
Selling, General and
Administrative
Expenses 368,160 312,480 1,418,200 1,223,420
Goodwill Amortization 23,200 18,400 93,200 66,200
Charge for Disposition of
Businesses --- 90,000 --- 90,000
Operating Profit 241,950 91,080 1,039,800 960,020
Other (Expense), Net (50,450) (65,580) (739,100) (66,620)
Income Before Income
Taxes 191,500 25,500 300,700 893,400
Income Taxes (Credit) 64,000 (19,400) 102,200 301,700
Net Income $127,500 $44,900 $198,500 $591,700
Earnings Per Common Share
- Diluted $0.26 $0.10 $0.42 $1.31
Average Diluted Common
Shares 484,200 448,300 474,900 451,800
Amounts are in thousands, except per share data.
MASCO CORPORATION
RECONCILIATION OF EARNINGS PER COMMON SHARE - DILUTED
Twelve Months
Three Months Ended Ended
December 31 December 31
2001 2000 2001 2000
As Reported $0.26 $0.10 $0.42 $1.31
Impairment Charge For:
Securities of Furnishings
International Inc. --- --- 0.63 ---
Other Non-Operating Assets --- 0.08 0.09 0.08
Charge for Planned Disposition of
Businesses --- 0.13 --- 0.13
As Reconciled $0.26 $0.31 $1.14 $1.52