TAYLOR, MI -- Masco Corporation this week reported a $5 million net loss on sales of $2 billion. The company said North American sales and International sales each decreased six percent.
"The slowing economic activity related to our markets, particularly consumer spending and new home construction in North America that we experienced late in the second quarter, continued into the third quarter of 2010. Four of our five product segments had sales declines compared to the third quarter of 2009. Our plumbing products segment was up modestly in sales, principally due to continued strong international results, as Hansgrohe continues to expand globally. Given the decline in sales, we were pleased with our performance from a profitability standpoint, as cost reductions partially offset the impact of volume declines and a less favorable relationship between selling prices and commodity costs compared to third quarter 2009," said Masco's CEO Tim Wadhams.
While the company is concerned about foreclosure activity and access to financing, it believes that housing starts will improve in 2010 from 554,000 units in 2009 to a range of 575,000 to 625,000 units. Masco expects expenditures on repair and remodel activity to be challenged in the near-term, and that big-ticket items will continue to be deferred until general economic conditions, unemployment, consumer confidence, credit availability and home prices improve.
Headquartered in Taylor, Michigan, Masco Corporation is one of the world's 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.