The US owner of bathroom brands Hansgrohe and Hüppe blamed inflation pressure, in part due to tariffs, and weak European markets for having to reduce full-year expectations again.
Reporting third-quarter financial results for the three months to end of September, Michigan-based Masco said it now estimated full-year earnings-per-share, adjusted for exceptional items, to be in the range of $2.39 (£1.87) to $2.44.
This is lower than the previous range of $2.48 to $2.55 announced in August, which was reduced from the $2.48 to $2.65 range anticipated in the early months of the year.
“While we delivered good top-line and earnings per share growth, we faced challenges that impacted our third quarter performance,” said Masco president and chief executive, Keith Allman.
“North American Plumbing and Cabinetry performed well; however, we experienced softness in our DIY paint and international markets.
“Despite these challenges, we remain confident in the fundamentals of our business and will continue to execute on our strategies to create shareholder value.”
The firm said sales increased 8% to $2.1bn from the same period in 2017, excluding acquisitions, sale of assets and currency movements, but income before taxes dropped slightly to $262 million from $264m in the same period last year.
In local currency, international sales, which includes the UK and Europe, decreased 7% to $377m from $407m in the three-month period last year.
Overall, the firm said gross margins decreased 210 basis points to 31.7% from 33.8%.
On a conference call, the firm called US tariffs on Chinese products “a tax on the consumer” and said it would have to see how it would affect prices in the new year, but was right now focused on “managing its supply chain” to drive productivity and maintain margin.
- Pictured above: Hansgrohe’s new PowderRain spray