Masco Corporation (MAS) has reported a 30.67 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $98 million, or $0.30 a share in the quarter, compared with $75 million, or $0.22 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $105 million, or $0.33 a share compared with $96 million or $0.29 a share, a year ago.
Revenue during the quarter went up marginally by 2.57 percent to $1,759 million from $1,715 million in the previous year period. Gross margin for the quarter expanded 155 basis points over the previous year period to 32.58 percent. Total expenses were 87.78 percent of quarterly revenues, up from 87.64 percent for the same period last year. That has resulted in a contraction of 14 basis points in operating margin to 12.22 percent.
Operating income for the quarter was $215 million, compared with $212 million in the previous year period.
However, the adjusted operating income for the quarter stood at $221 million compared to $219 million in the prior year period. At the same time, adjusted operating margin contracted 21 basis points in the quarter to 12.56 percent from 12.77 percent in the last year period.
"We finished the year with good fourth quarter results," said Keith Allman, Masco's president and chief executive officer. "Our Plumbing Products segment had another record quarter on both the top and bottom lines, demonstrating the strength of our brands and our innovative products. Our Decorative Architectural Products segment posted solid 5 percent growth in the quarter, and we executed our planned investment to drive future profitable growth. Our Cabinetry Products segment continued its strategy of exiting certain direct-to-builder business, introducing new products, and driving growth with our market-leading Merillat and KraftMaid brands. We began to see improvements in the operations of our U.S. window business, and we continued our disciplined capital allocation by returning approximately $240 million to shareholders through share repurchases and dividends during the quarter."
Operating cash flow improves marginally
Masco Corporation has generated cash of $726 million from operating activities during the year, up 3.86 percent or $27 million, when compared with the last year.
The company has spent $124 million cash to meet investing activities during the year as against cash outgo of $189 million in the last year.
The company has spent $1,046 million cash to carry out financing activities during the year as against cash outgo of $410 million in the last year period.
Cash and cash equivalents stood at $990 million as on Dec. 31, 2016, down 32.56 percent or $478 million from $1,468 million on Dec. 31, 2015.
Debt comes down
Masco Corporation has recorded a decline in total debt over the last one year. It stood at $2,997 million as on Dec. 31, 2016, down 12.03 percent or $410 million from $3,407 million on Dec. 31, 2015. Total debt was 58.34 percent of total assets as on Dec. 31, 2016, compared with 59.98 percent on Dec. 31, 2015. Interest coverage ratio improved to 5 for the quarter from 3.93 for the same period last year.
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