Masco 4Q sales increase 18.2%
By Furniture Today Staff -- Furniture Today, March 1, 2004
TAYLOR, Mich. — TAYLOR, Mich. — Masco's fourth quarter continued the strong revenue gains it has posted all year, while a one-time charge led to a 52.8% decline in net income.
The home products giant, whose companies include ready-to-assemble furniture makers Mill's Pride, Tvilum-Scanbirk and dScan, reported net sales of $2.9 billion in the fourth quarter, up 18.2% from a year earlier, and $10.9 billion for the year, up 19.5% from 2002.
Fourth-quarter earnings of $92 million were down from $195 million a year ago, mainly because of a one-time, noncash charge of $118 million after taxes taken in connection with the company's previously announced plan to divest some European businesses. For the year, earnings of $806 million were up 36.6%, even with the charge.
Internal growth and acquisitions both spurred growth in 2003, the company said. Sales to key retailers — Lowe's, Home Depot and Wal-Mart — rose 22% in the fourth quarter and 10% for the year to $3.4 billion.
Sales in the cabinets and related products category, including the furniture companies, rose 13% in the fourth quarter and 9% in the year.
For 2004, company executives are projecting earnings from continuing operations of $1.80 to $1.90 per share, up from $1.64 in 2003 (or $1.75, excluding the charge for the planned divestitures). The projection excludes about 5 cents per share from the European businesses to be divested.
| Masco Corp. | |||
|---|---|---|---|
| Owns d-Scan, Mill's Pride and Tvilum-Scanbirk | |||
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 12/31 | 2003 | 2002 | Change |
| (a) Includes pretax goodwill impairment charges of $137 million in the 2003 quarter and $142 million in the 2003 year and pretax income from litigation settlement of $1 million in the 2003 quarter and $72 million in the 2003 year. The 2003 quarter also includes a $1 million net loss from discontinued operations and the 2003 year also includes $66 million in net income from discontinued operations, (b) Includes $16 million in pretax income in both periods on the disposition of a business and net income from discontinued operations of $5 million in the 2002 quarter and $18 million in the 2002 year. The 2002 quarter also includes $19 million in pretax income from litigation settlement. The 2002 year also includes a $147 million pretax charge for litigation settlement and a $92 million extraordinary charge, the cumulative effect of an accounting change. (c) Based on average shares outstanding of 481 million in the 2003 quarter, 529 million in the 2002 quarter, 491 million in the 2003 year and 514 million in the 2002 year. | |||
| Sales | $2,862,000,000 | $2,421,000,000 | 18.2% |
| Operating income | 390,000,000 | 346,000,000 | 12.7% |
| Net income | (a)92,000,000 | (b)195,000,000 | (52.8%) |
| Earnings per share (c) | 0.19 | 0.37 | (48.6%) |
| Year ended 12/31 | 2003 | 2002 | Change |
| Sales | $10,936,000,000 | $9,149,000,000 | 19.5% |
| Operating income | 1,494,000,000 | 1,432,000,000 | 4.3% |
| Net income | (a)806,000,000 | (b)590,000,000 | 36.6% |
| Earnings per share (c) | 1.64 | 1.15 | 42.6% |
