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$MAS said net sales in its largest segment Plumbing Products rose 5% to $846MM in 4Q15 versus 4Q14. In Decorative Architectural Products, net sales fell 4% to $420MM. In Cabinets and Related Products, net sales increased 5% to $254MM and in Other Specialty Products, net sales grew 8% to $195MM.
$MAS signed a definitive agreement to acquire The L.D. Kichler Co, in a move to expand reach into the US residential lighting industry. Additionally, Masco said it acquired Mercury Plastics, Inc. in 4Q17. Mercury is a plastics processor and manufacturer of water handling systems. Terms of the agreements were not disclosed.
<span style="font-size:12.0pt;line-height:115%;font-family: "Times New Roman","serif"">$MAS said holders of the notes tendered under its previously announced cash tender offers will be eligible to receive the total consideration, including the applicable early tender payment specified in the offer. Holders of the notes will also get accrued interest up to, but not including June 27, 2017, the expected settlement date of the notes.
$MAS updated its 2017 EPS target to the range of $1.90-2.00 per common share, exceeding its previous guidance of $1.80. This updated target includes an estimated $0.06 benefit from a reduction in the company's expected tax rate. The company also expects demand in both repair and remodel and new home construction to be positive.
$MAS’s Plumbing Products’ sales rose 6% to $863MM in 1Q17, while Decorative Architectural Products’ sales increased 2% for the quarter to $505MM compared to a year ago. Cabinetry Products’ sales declined 2% to $231MM and Windows and Other Specialty Products’ sales was flat YoY at $178MM.
Home improvement products manufacturer $MAS reported a 28.44% increase in 1Q17 earnings, helped by higher sales in Plumbing Products and Decorative Architectural Products. Net income was $140MM or $0.43 per share in 1Q17 compared to $109MM or $0.32 per share a year ago. Sales grew 3.31% to $1.77Bil. Adjusted EPS grew 28% to $0.41.
$MAS reported that Plumbing Products’ sales increased 5% and Decorative Architectural Products’ sales increased 5% in 4Q16 compared to a year ago. Cabinetry Products’ sales decreased 8% and Windows and Other Specialty Products’ sales declined 2%.
$MAS reported a 31% increase in its 4Q16 profit, helped by higher sales in Plumbing Products and Decorative Architectural Products. Net income was $98MM or $0.30 per share compared to $75MM or $0.22 per share in the prior year quarter. Sales grew 3% to $1.76Bil. Adjusted EPS increased 14% to $0.33.
$MAS spent around $65-70MM on share buybacks and has got a real cash hoard close to $1Bil available on balance sheet. $MAS said it is going to continue its disciplined capital allocation program and reinvest in business. $MAS thinks it is a balancing act to buyback more stock on a regular basis when the extent of valuations are too frothy.
$MAS remains confident that it will achieve 2017 EPS target of $1.80 that it previously stated at Investor Day in 2015. The company's operational execution, with strengthened balance sheet, strong liquidity position and substantial free cash flow, provides $MAS with multiple levers to continue to drive shareholder value.
$MAS expects to incur an additional $5MM of product launch cost in 4Q16. For 4Q16, the company still expects the revenue impact of its decision to exit select builder direct business in kitchen countertop business to negatively impact sales by $15-20MM. These impacts will continue through 1Q17.
$MAS' Cabinet segment sales declined 6% in 3Q16, due to the deliberate exits of certain lower-margin business within the builder direct channel in the U.s. and at select low-margin accounts in UK Cabinet business. This was partially offset by KraftMaid's strong performance in the retail channel.
$MAS' Decorative Architectural segment grew 2% in 3Q16, as it continued to experience strong growth across BEHR PRO business and solid performance of BEHR MARQUEE interior product. This was partially offset by timing and amount of incremental promotional expense.
$MAS' Plumbing segment delivered another strong growth in 3Q16, driven by terrific performance at Delta, Hansgrohe and Watkins. Segment sales increased 6%, excluding currency impact, on growth in faucets, showers and spas. Foreign currency translation negatively impacted sales by about $9MM in 3Q16.