DOW JONES NEWSWIRES
Masco Corp.'s (MAS) first-quarter loss widened, with its
adjusted bottom line missing analysts' estimates, as revenue
fell--especially in North America--and margins declined.
"As anticipated, the trends impacting our business, including
depressed new-home construction, the deferral of "big ticket"
repair and remodel activity and commodity cost pressures have
continued into 2011," said Chief Executive Tim Wadhams.
Masco, which makes KraftMaid cabinets, Delta faucets and Behr
paint, has seen sales decline in recent quarters after a federal
tax credit spurred home sales last spring, which increased demand
for its products. In March, Standard & Poor's Ratings Services
lowered its outlook on Masco, citing a potentially slower recovery
in the residential construction sector.
Masco reported a loss of $46 million, or 13 cents a share,
compared with a loss of $7 million, or two cents a share, a year
earlier. Excluding items such as rationalization charges and
investment gains, the loss was five cents, compared with earnings
of three cents.
Revenue fell 4.3% to $1.78 billion.
Analysts polled by Thomson Reuters had most recently forecast a
loss of three cents on $1.75 billion in revenue.
Gross margin fell to 25.3% from 26.7%. North American sales fell
6.8%, while international sales increased 4%.
Shares closed at $13.38 and were inactive after hours. As of the
close, the stock had fallen 27% in the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;