Masco Corporation (MAS) has reported a 24.46 percent fall in profit for the quarter ended Jun. 30, 2015. The company has earned $105 million, or $0.30 a share in the quarter, compared with $139 million, or $0.39 a share for the same period last year.
Revenue during the quarter went up marginally by 2.83 percent to $1,929 million from $1,876 million in the previous year period. Gross margin for the quarter expanded 237 basis points over the previous year period to 33.02 percent. Total expenses were 85.54 percent of quarterly revenues, down from 88.22 percent for the same period last year. This has led to an improvement of 268 basis points in operating margin to 14.46 percent.
Operating income for the quarter was $279 million, compared with $221 million in the previous year period.
Operating cash flow improves significantly
Masco Corporation has generated cash of $139 million from operating activities during the first half, up 127.87 percent or $78 million, when compared with the last year period.
The company has spent $60 million cash to meet investing activities during the first half as against cash inflow of $40 million in the last year period It has incurred net capital expenditure of $66 million on net basis during the first six months, up 43.48 percent or $20 million from year ago period.
The company has spent $159 million cash to carry out financing activities during the first six months as against cash outgo of $125 million in the last year period.
Cash and cash equivalents stood at $1,297 million as on Jun. 30, 2015, up 8.54 percent or $102 million from $1,195 million on Jun. 30, 2014.
Working capital increases sharply
Masco Corporation has recorded an increase in the working capital over the last year. It stood at $2,000 million as at Jun. 30, 2015, up 51.40 percent or $679 million from $1,321 million on Jun. 30, 2014. Current ratio was at 2.26 as on Jun. 30, 2015, up from 1.54 on Jun. 30, 2014.
Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 49 days for the last year period. Days sales outstanding went down to 26 days for the quarter compared with 61 days for the same period last year.
Days inventory outstanding has decreased to 27 days for the quarter compared with 61 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 73 for the same period last year.
Debt remains almost stable
Total debt of Masco Corporation remained almost stable for the quarter at $3,425 million, when compared with the last year period. Total debt was 58.36 percent of total assets as on Jun. 30, 2015, compared with 47.43 percent on Jun. 30, 2014. Debt to equity ratio was at 26.15 as on Jun. 30, 2015, up from 3.80 as on Jun. 30, 2014. Interest coverage ratio improved to 4.57 for the quarter from 3.95 for the same period last year.
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