TAYLOR, MI -- Masco Corporation earned $8 million in the second quarter, on revenues of $2 billion North American sales decreased six percent and International sales increased 18 percent.
"Our sales would have increased one percent (excluding cabinet products that we have exited, as previously announced) compared to second quarter 2010, reflecting strong sales of plumbing related products driven by share gains of our Hansgrohe and Delta brands and foreign currency translation. The second quarter of 2011 was negatively impacted by continued declines in new home construction and in the deferral of "big ticket" repair and remodel activity," said Tim Wadhams. "We completed several of the major initiatives that have been underway in our installation services and North American cabinet operations which marked significant milestones for these businesses. We believe that our installation business gained share sequentially in the second quarter of 2011 and our North American cabinet business maintained share in the second quarter of 2011, continuing the momentum from the first quarter of 2011. In addition, we further reduced cabinet capacity by idling another manufacturing facility."
"The lack of job creation, high cost of energy and declining consumer confidence have made forecasting the timing and strength of the recovery extremely difficult. Most economists have reduced their forecasts for 2011, including housing start levels which are now projected to be flat with 2010. As such, we believe that growth in the second half of 2011 will be challenged. Longer-term however, we are confident about the fundamentals for the new home construction and home improvement markets and we are optimistic about the future," said Tim Wadhams. "We will continue to focus on the things we can control to improve our execution and strengthen our brands. We have several new programs that we are funding today that we believe will drive future growth opportunities across our businesses. We are very encouraged with the progress we are making to increase our penetration with North American cabinet dealers and with the professional painter. We also have exciting new programs that will launch later this year in plumbing, cabinets and builders hardware and we continue to invest in the development of international opportunities for paint and plumbing. We expect that improvements in our markets and in consumer spending, together with the changes we are driving across Masco and our financial strength will create significant value for our shareholders."