Masco has reported
second-quarter net income of $82 million, down 57 percent from $189 million
last year. Sales declined 14.6 percent to $2.64 billion from $3.09 billion from
the same time last year.
Masco,
which includes brands such as Behr paint, Delta faucet and KraftMaid cabinets,
saw North American sales fall 19 percent, while international sales rose 6
percent.
The
company reported that its results were affected by “significantly lower sales
volume to the new home construction market and a continued decline in consumer
spending for home improvement products.”
To control
its costs, Masco recently made changes to its sourcing programs, consolidated certain
businesses, closed plants and made head count reductions to the tune of 17,000
since late 2006. It has also closed 11 manufacturing facilities since that
time.
“Business
conditions remain difficult in the company's markets,” the company said in a
statement. It estimates housing starts would continue to decline in the second
half of 2008 and consumer spending on home improvement products would not
improve in the coming year.
Masco Sees Net Sales Decline
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