Global home improvement giant Masco Corporation has reported “solid” net sales and operating profit growth in the second quarter.
The group, which owns Hansgrohe, Bristan, Hüppe and Moores Furniture, saw a 3% increase in sales to $2.1 billion (£1.5bn) in Q2, compared with the same quarter last year.
Operating profit for the quarter grew 7% to $357 million.
Gross margins increased from 35% to 35.8% and operating margins rose from 16.7% to 17.4%.
“We continued to execute on our strategic plan in the second quarter,” said Masco president and chief executive, Keith Allman. “Our Plumbing Products and Decorative Architectural Products segments once again delivered strong results, and I am extremely pleased with the progress we have made in our Windows business. In our Cabinetry Products segment, we exited certain lower margin builder business and are now pivoting towards growth. Additionally, we continued our disciplined capital allocation by returning approximately $74 million to shareholders through dividends and share repurchases in the quarter.”
Plumbing products’ net sales increased by 3%, driven by North America and international growth.
However, cabinetry product net sales decreased 4% due to the previously announced exit of lower margin business in the builder channel and lower sales in the UK cabinet operation.
“The demand drivers underlying our business are strong and very supportive of continued, long-term growth,” said Allman. “We are confident in our plans to leverage our strong brands, industry leading positions, and our Masco Operating System to capitalize on these robust, long-term demand drivers. We are pleased with our performance this year, and accordingly, we are updating our 2017 earnings per share target to the range of $1.93 to $2.00.”