Masco Corporation has reported a “strong start” to 2021 with first-quarter sales up 25% and profits up by 62%.
Masco Corporation, which owns such KBB brands as Axor, Bristan, Hansgrohe and Hüppe, saw sales for the quarter ended March 31 this year climb by 25% to $1.97bn (£1.42bn) compared with the same quarter of 2020. Operating profits rose by 62% to $365 million compared with Q1 2020.
Commenting on its first-quarter performance, Masco president and chief executive Keith Allman said: “We achieved another outstanding quarter. We capitalised on the continued strong demand for our products to deliver exceptional sales growth, margin expansion and an 89% increase in adjusted earnings per share. We also continued our capital deployment of our strong free cash flow by returning $339 million to shareholders through dividends and share repurchases during the quarter. Finally, we further strengthened our balance sheet and reduced interest expense through the successful refinancing of our 2022, 2025 and 2026 debt maturities.”
Analysed by division, we find that Plumbing Products increased sales by 31% to $1.25bn, with profits up from $157m to $252m. Decorative Architectural Products saw revenues up 15% from $626m to $721m, and profits up to $142m from $95m.
By region, North America increased sales by 22% from $1.26bn to $1.53bn with profits up from £210m to $308m. International sales, meanwhile, rose 37% from $323m to $441m, with profits more than doubling from $42m to $86m.
Looking back to its full-year performance in 2020, figures followed the rising trajectory of the previous few years and Masco fared well through the worst of the pandemic. It saw sales of $7.2bn compared with $6.7bn for 2019, and profits up from $1.1bn to $1.3bn.
Allman said at that time: “While the recovery from the pandemic is uncertain and some of its impacts may last for the foreseeable future, I am confident that our industry-leading brands, resilient teams and the strength of the Masco operating system will fuel our future growth.”
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