Masco 8K Reports Second Quarter 2011 Results | MAS 25 Jul 11

Exhibit 99


		FOR IMMEDIATE RELEASE

Investor / Media Contact

Maria Duey
Vice President — Investor Relations and Communications
313.792.5500
maria_duey@mascohq.com

MASCO CORPORATION REPORTS SECOND
QUARTER 2011 RESULTS

2011 Second Quarter Commentary

	•		Sales declined one percent to $2.0 billion.

	•		Results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, compared to the second quarter of 2010 were as follows:

	•		Gross profit margins were 26.9 percent compared to 28.4 percent.

	•		Operating profit margins were 5.5 percent compared to 8.3 percent.

	•		Income was $.05 per common share compared to $.16 per common share.

	•		Income, as reported, was $.02 per common share compared to $.01 per common share for the second quarter of 2010.

	•		Working capital as a percent of sales improved to 15.6 percent at June 30, 2011, compared to 16.1 percent at June 30, 2010.

	•		We ended the second quarter of 2011 with over $1.6 billion of cash.

Taylor, Mich., (July 25, 2011) —Masco Corporation (NYSE: MAS) today reported that net sales for the second quarter ended June 30, 2011 decreased one percent to $2.0 billion, compared to the second quarter of 2010. North American sales decreased six percent and International sales increased 18 percent. In local currencies, International sales increased five percent compared with the second quarter of 2010.

Income was $.05 per common share and $.16 per common share for the second quarters of 2011 and 2010, respectively, excluding the items in Exhibit A and with a normalized tax rate of 36 percent. Including these items, income, as reported was $.02 per common share and $.01 per common share for the second quarters ended June 30, 2011 and 2010, respectively.

“Our sales would have increased one percent (excluding cabinet products that we have exited, as previously announced) compared to second quarter 2010, reflecting strong sales of plumbing related products driven by share gains of our Hansgrohe and Delta brands and foreign currency translation. The second quarter of 2011 was negatively impacted by continued declines in new home construction and in the deferral of “big ticket” repair and remodel activity,” said Tim Wadhams. “We completed several of the major initiatives that

have been underway in our installation services and North American cabinet operations which marked significant milestones for these businesses. We believe that our installation business gained share sequentially in the second quarter of 2011 and our North American cabinet business maintained share in the second quarter of 2011, continuing the momentum from the first quarter of 2011. In addition, we further reduced cabinet capacity by idling another manufacturing facility.”

Income for the three months ended June 30, 2011 included $33 million of pre-tax gains ($.06 per common share, after tax) related to the sale of financial investments. Income for the three months ended June 30, 2010 included $33 million of pre-tax charges ($.06 per common share, after tax) related to the impairment of financial investments.

We continue to focus on the rationalization of our businesses, including business consolidations, plant closures, headcount reductions, system implementations and other initiatives. During the second quarters of 2011 and 2010, we incurred costs and charges of $15 million pre-tax ($.03 per common share, after tax) and $51 million pre-tax ($.09 per common share, after tax), respectively, related to these initiatives.

Outlook 2011

“The lack of job creation, high cost of energy and declining consumer confidence have made forecasting the timing and strength of the recovery extremely difficult. Most economists have reduced their forecasts for 2011, including housing start levels which are now projected to be flat with 2010. As such, we believe that growth in the second half of 2011 will be challenged. Longer-term however, we are confident about the fundamentals for the new home construction and home improvement markets and we are optimistic about the future,” said Tim Wadhams. “We will continue to focus on the things we can control to improve our execution and strengthen our brands. We have several new programs that we are funding today that we believe will drive future growth opportunities across our businesses. We are very encouraged with the progress we are making to increase our penetration with North American cabinet dealers and with the professional painter. We also have exciting new programs that will launch later this year in plumbing, cabinets and builders hardware and we continue to invest in the development of international opportunities for paint and plumbing. We expect that improvements in our markets and in consumer spending, together with the changes we are driving across Masco and our financial strength will create significant value for our shareholders.”

Headquartered in Taylor, Michigan, Masco Corporation is one of the world’s leading manufacturers of home improvement and building products, as well as a leading provider of services that include the installation of insulation and other building products.

The 2011 second quarter supplemental material, including a presentation in PDF format, will be distributed after the market closes on July 25, 2011 and will be available on the Company’s Web site atwww.masco.com.

A conference call regarding items contained in this release is scheduled for Tuesday, July 26, 2011 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing (913) 312-9304 (confirmation #6636952). The conference call will be webcast simultaneously on the Company’s Web site at www.masco.com and supplemental material, including the financial data referred to on the call and a reconciliation of non-GAAP information provided on the call, will also be available on the Web site.

A replay of the call will be available on Masco’s Web site or by phone by dialing (719) 457-0820 (replay access code #6636952) approximately two hours after the end of the call and will continue through August 2, 2011.

Masco Corporation’s press releases and other information are available through the Company’s toll free number, 1-888-MAS-NEWS, or under the Investor Relations section of Masco’s Web site atwww.masco.com.

# # #

Statements contained in this press release that reflect our views about our future performance constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believe,” “anticipate,” “appear,” “may,” “will,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by our reliance on new home construction and home improvement, our reliance on key customers, the cost and availability of raw materials, shifts in consumer preferences and purchasing practices, and our ability to achieve cost savings through the Masco Business System and other initiatives. These and other factors are discussed in detail in Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Our forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.

The Company believes that the non-GAAP performance measures and ratios that are contained herein, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States. Additional information about the Company is contained in the Company’s filings with the Securities and Exchange Commission and is available on Masco’s Web site at www.masco.com.

MASCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
For the Three Months and Six Months Ended June 30, 2011 and 2010
(In Millions, Except Per Common Share Data)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Net sales	$	2,022		$	2,048		$	3,794		$	3,900
Cost of Sales		1,490			1,502			2,837			2,862

Gross profit		532			546			957			1,038

Selling, general and administrative expenses		441			427			845			841

Operating profit		91			119			112			197

Other income (expense), net		(33	)		(103	)		(75	)		(159	)

Income before income taxes		58			16			37			38

Income tax expense		38			4			51			22

Net income (loss)		20			12			(14	)		16

Less: Net income attributable to non-controlling interest		(12	)		(9	)		(24	)		(20	)

Net income (loss) attributable to Masco Corporation	$	8		$	3		$	(38	)	$	(4	)


Income (loss) per common share attributable to Masco
Corporation (diluted):
Net income (loss) attributable to Masco Corporation	$	0.02		$	0.01		$	(0.11	)	$	(0.02	)


Average diluted common shares outstanding		349			349			348			349


Amounts attributable to Masco Corporation:
Net income (loss) attributable to Masco Corporation	$	8		$	3		$	(38	)	$	(4	)

Masco Corporation
Key Financial Data As Reported — Unaudited
Q2 — 2011 and 2010
(In Millions, Except Earnings Per Share)


Sales & Earnings	6/30/2011			6/30/2010			*Change*
Net Sales	$	2,022		$	2,048			-1	%
Operating Profit	$	91		$	119			N/A
Operating Profit % of Net Sales		4.5	%		5.8	%		(130	)	bps
Other Income (Expense), Net	$	(33	)	$	(103	)	$	70
Income Tax Expense	$	38		$	4			N/A
Income Attributable to Masco Corporation	$	8		$	3			N/A
Diluted EPS	$	0.02		$	0.01			N/A


Operating Expenses	6/30/2011			6/30/2010			*Change*
Cost of Sales	$	1,490		$	1,502			-1	%
Gross Margin		26.3	%		26.7	%		(40	)	bps
SG&A Expenses (Including GCE)	$	441		$	427			3	%
SG&A as a % of net sales		21.8	%		20.8	%		(100	)	bps
General Corporate Expense (GCE)	$	36		$	27			33	%
General Corp Expense as a % of net sales		1.8	%		1.3	%		50		bps


Business Segments	6/30/2011			6/30/2010			*Change*
Cabinets and Related Products:
Net Sales	$	330		$	400			-18	%
Operating Loss	$	(27	)	$	(37	)		N/A
Operating Loss % of Net Sales		-8.2	%		-9.3	%		110		bps
Plumbing Products:
Net Sales	$	761		$	682			12	%
Operating Profit	$	95		$	86			N/A
Operating Profit % of Net Sales		12.5	%		12.6	%		(10	)	bps
Installation and Other Services:
Net Sales	$	294		$	309			-5	%
Operating Loss	$	(26	)	$	(23	)		N/A
Operating Loss % of Net Sales		-8.8	%		-7.4	%		(140	)	bps
Decorative Architectural Products:
Net Sales	$	492		$	505			-3	%
Operating Profit	$	90		$	109			N/A
Operating Profit % of Net Sales		18.3	%		21.6	%		(330	)	bps
Other Specialty Products:
Net Sales	$	145		$	152			-5	%
Operating Profit	$	—		$	11			N/A
Operating Profit % of Net Sales		0.0	%		7.2	%		(720	)	bps

Total Segment Reported:
Net Sales	$	2,022		$	2,048			-1	%
Operating Profit	$	132		$	146			N/A
Operating Profit % of Net Sales		6.5	%		7.1	%		(60	)	bps


Business Regions	6/30/2011			6/30/2010			*Change*
North America
Net Sales	$	1,563		$	1,659			-6	%
Operating Profit	$	87		$	114			N/A
Operating Profit % of Net Sales		5.6	%		6.9	%		(130	)	bps
International, principally Europe
Net Sales	$	459		$	389			18	%
Operating Profit	$	45		$	32			N/A
Operating Profit % of Net Sales		9.8	%		8.2	%		160		bps

Masco Corporation
Key Financial Data As Reported — Unaudited
Year-to-date June 30, 2011 and 2010
(In Millions, Except Earnings Per Share)


Sales & Earnings	6/30/2011			6/30/2010			*Change*
Net Sales	$	3,794		$	3,900			-3	%
Operating Profit	$	112		$	197			N/A
Operating Profit % of Net Sales		3.0	%		5.1	%		(210	)	bps
Other Income (Expense), Net	$	(75	)	$	(159	)	$	84
Income Tax Expense	$	51		$	22			N/A
(Loss) Attributable to Masco Corporation	$	(38	)	$	(4	)		N/A
Diluted EPS	$	(0.11	)	$	(0.02	)		N/A


Operating Expenses	6/30/2011			6/30/2010			*Change*
Cost of Sales	$	2,837		$	2,862			-1	%
Gross Margin		25.2	%		26.6	%		(140	)	bps
SG&A Expenses (Including GCE)	$	845		$	841			0	%
SG&A as a % of net sales		22.3	%		21.6	%		(70	)	bps
General Corporate Expense (GCE)	$	68		$	57			19	%
General Corp Expense as a % of net sales		1.8	%		1.5	%		30		bps


Business Segments	6/30/2011			6/30/2010			*Change*
Cabinets and Related Products:
Net Sales	$	637		$	803			-21	%
Operating Loss	$	(77	)	$	(52	)		N/A
Operating Loss % of Net Sales		-12.1	%		-6.5	%		(560	)	bps
Plumbing Products:
Net Sales	$	1,471		$	1,345			9	%
Operating Profit	$	179		$	170			N/A
Operating Profit % of Net Sales		12.2	%		12.6	%		(40	)	bps
Installation and Other Services:
Net Sales	$	548		$	582			-6	%
Operating Loss	$	(66	)	$	(65	)		N/A
Operating Loss % of Net Sales		-12.0	%		-11.2	%		(80	)	bps
Decorative Architectural Products:
Net Sales	$	867		$	894			-3	%
Operating Profit	$	159		$	196			N/A
Operating Profit % of Net Sales		18.3	%		21.9	%		(360	)	bps
Other Specialty Products:
Net Sales	$	271		$	276			-2	%
Operating (Loss) Profit	$	(10	)	$	5			N/A
Operating (Loss) Profit % of Net Sales		-3.7	%		1.8	%		(550	)	bps

Total Segment Reported:
Net Sales	$	3,794		$	3,900			-3	%
Operating Profit	$	185		$	254			N/A
Operating Profit % of Net Sales		4.9	%		6.5	%		(160	)	bps

Masco Corporation
Key Financial Data As Reported — Unaudited
Year-to-date June 30, 2011 and 2010
(In Millions, Except Earnings Per Share)


Business Regions	6/30/2011			6/30/2010			*Change*
North America
Net Sales	$	2,896		$	3,089			-6	%
Operating Profit	$	98		$	178			N/A
Operating Profit % of Net Sales		3.4	%		5.8	%		(240	)	bps
International, principally Europe
Net Sales	$	898		$	811			11	%
Operating Profit	$	87		$	76			N/A
Operating Profit % of Net Sales		9.7	%		9.4	%		30		bps


Working Capital	6/30/2011			6/30/2010
Receivable Days		50			50		—
Inventory Days		59			55		4
Payable Days		59			51		8
Working Capital (Receivables+Inventory-Payables)	$	1,168		$	1,268		-8	%
Working Capital as a % of Sales (As Reported TTM¹)		15.6	%		16.1	%	(50	)	bps

Other	6/30/2011			6/30/2010
Dividend Payments	$	54		$	54
Cash Paid for Share Repurchases²	$	30		$	45
Common Shares Repurchased²		2			3
CAPEX	$	67		$	62
Depreciation and Amortization	$	137		$	137
Average diluted common shares outstanding		348			349

Balance Sheet Information
Long-Term Debt	$	4,027		$	4,038
Notes Payable	$	65		$	66
Total Debt	$	4,092		$	4,104
Shareholders’ Equity	$	1,537		$	2,608
Debt to Capital		73	%		61	%
Cash		1,611			1,384


¹		— Trailing Twelve Months

²		— Common shares were repurchased to offset the effect of stock award grants in the first quarters of 2011 and 2010.

MASCO CORPORATION
Reconciliations — Exhibit A
For the Three Months Ended June 30, 2011 and 2010
(In Millions, Except Per Common Share Data)

Gross Profit and Operating Profit Reconciliations


	Three Months Ended
	June 30,
	2011			2010
Sales	$	2,022		$	2,048


Gross profit, as reported	$	532		$	546

Rationalization charges		11			36


Gross profit, as adjusted	$	543		$	582


Gross margin, as reported		26.3	%		26.7	%
Gross margin, as adjusted		26.9	%		28.4	%

Operating profit, as reported	$	91		$	119

Rationalization charges		15			51

Litigation charge		5			—


Operating profit, as adjusted	$	111		$	170


Operating margin, as reported		4.5	%		5.8	%
Operating margin, as adjusted		5.5	%		8.3	%

Earnings Per Common Share Reconciliation


	Three Months Ended
	June 30,
	2011			2010
Income before income taxes — as reported	$	58		$	16

Rationalization charges		15			51

Litigation charge		5

(Gains) losses from financial investments		(33	)		—

Impairment of financial investments		—			33


Income before income taxes — as adjusted	$	45		$	100

Tax at 36% rate		(16	)		(36	)

Less: Net income attributable to non-controlling interest		(12	)		(9	)


Net income — as adjusted	$	17		$	55


Earnings per common share — as adjusted	$	0.05		$	0.16


Shares outstanding		349			349

The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.

Masco Corporation — 2nd Quarter 2011


Page
1		Condensed Consolidated Statements of Operations - 2011 & 2010 by Quarter — Unaudited

2		Notes to Condensed Consolidated Statements of Operations - 2011 & 2010 by Quarter — Unaudited

3		2011 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited

4		2011 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited

5		2011 Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited

6		2010 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited

7		2010 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited

8		2010 Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited

9		Other Income (Expense), Net - 2011 & 2010 by Quarter — Unaudited

10		Condensed Consolidated Balance Sheets — Unaudited

		GAAP Reconciliations:

11		Sales Growth Excluding the Effect of Acquisitions and Currency Translation — Unaudited

12		Operating Profit and Margins — Unaudited

MASCO CORPORATION
Condensed Consolidated Statements of Operations
2011 & 2010 — by Quarter — Unaudited
(dollars in millions, except per share data)


	2011									2010
	Year	Qtr. 4	Qtr. 3	Qtr. 2			Qtr. 1			Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Net Sales				$	2,022		$	1,772		$	7,592		$	1,735		$	1,957		$	2,048		$	1,852

Cost of Sales					1,490			1,347			5,752			1,427			1,463			1,502			1,360


Gross Profit					532			425			1,840			308			494			546			492
(Gross Margin as a % of Sales)					26.3	%		24.0	%		24.2	%		17.8	%		25.2	%		26.7	%		26.6	%
SG&A Expense (before lines 1, 2, 3)					400			372			1,508			359			365			400			384
(S,G&A Expense as a % of Sales)					19.8	%		21.0	%		19.9	%		20.7	%		18.7	%		19.5	%		20.7	%
Operating Profit (before lines 1, 2, 3)					132			53			332			(51	)		129			146			108
(Operating Margin as a % of Sales)					6.5	%		3.0	%		4.4	%		-2.9	%		6.6	%		7.1	%		5.8	%
1 General Corporate Expense (GCE), Net					36			32			110			26			27			27			30
S,G&A Expense as a % of Sales (including lines 1, 2, 3)					21.8	%		22.8	%		30.8	%		63.7	%		20.0	%		20.8	%		22.4	%
2 Charge for Litigation Settlement					5			—			—			—			—			—			—
3 Impairment Charges for Goodwill and Other Intangible Assets					—			—			721			721			—			—			—

Operating Profit (Loss) per F/S				$	91		$	21		$	(499	)	$	(798	)	$	102		$	119		$	78

Income (Loss) Per Common Share Attributable to Masco Corporation (Diluted):
Net Income (Loss)				$	0.02		$	(0.13	)	$	(3.00	)	$	(2.96	)	$	(0.02	)	$	0.01		$	(0.02	)

Please see page 2 for Notes.

Page 1

MASCO CORPORATION
Notes To Condensed Consolidated Statements of Operations
2011 & 2010 — by Quarter — Unaudited

Notes:

	-		Data exclude discontinued operations.

	-		Operating results for the first and second quarters of 2011 include costs and charges related to business rationalizations and other initiatives of $32 million pre-tax ($.06 per common share, after tax) and $15 million pre-tax ($.03 per common share, after tax), respectively.

	-		Operating results for the second quarter of 2011 include litigation settlement expense of $5 million pre-tax ($.01 per common share, after tax).

	-		Net income (loss) for the first and second quarters of 2011 include income from financial investments of $17 million pre-tax ($.03 per common share, after tax) and $33 million, pre-tax ($.06 per common share, after tax), respectively.

	-		Operating results for the fourth quarter of 2010 include non-cash impairment charges for goodwill and other intangible assets of $721 million pre-tax ($1.70 per common share, after tax).

	-		Operating results for the first, second, third and fourth quarters of 2010 include costs and charges related to business rationalizations and other initiatives of $14 million pre-tax ($.03 per common share, after tax), $51 million pre-tax ($.09 per common share, after tax), $39 million pre-tax ($.07 per common share, after tax), and $104 million pre-tax ($.19 per common share, after tax), respectively.

	-		Net income (loss) for the second and fourth quarters of 2010 include non-cash impairment charges for financial investments of $33 million pre-tax ($.06 per common share, after tax) and $1 million pre-tax respectively.

Page 2

MASCO CORPORATION
Quarterly Segment Data — 2011
Excluding Costs and Charges for Business Rationalizations and Other Initiatives
(dollars in millions)


	Year	Qtr. 4	Qtr. 3	Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products				$	330		$	307
- Plumbing Products					761			710
- Installation and Other Services					294			254
- Decorative Architectural Products					492			375
- Other Specialty Products					145			126

-Total				$	2,022		$	1,772


- North America				$	1,563		$	1,333
- International, principally Europe					459			439

-Total, as above				$	2,022		$	1,772


Operating (Loss) Profit:
- Cabinets and Related Products				$	(21	)	$	(29	)
- Plumbing Products					100			90
- Installation and Other Services					(24	)		(38	)
- Decorative Architectural Products					90			70
- Other Specialty Products					—			(10	)

-Total				$	145		$	83


- North America				$	100		$	41
- International, principally Europe					45			42

-Total, as above				$	145		$	83


General Corporate Expense (GCE), Net					34			30

Charge for Litigation Settlement					5			—


Operating Profit (after GCE and Adjustments)					106			53

Other Income (Expense), Net					(33	)		(42	)


Income before Income Taxes				$	73		$	11


Margins:
- Cabinets and Related Products					-6.4	%		-9.4	%
- Plumbing Products					13.1	%		12.7	%
- Installation and Other Services					-8.2	%		-15.0	%
- Decorative Architectural Products					18.3	%		18.7	%
- Other Specialty Products					0.0	%		-7.9	%
-Total					7.2	%		4.7	%

- North America					6.4	%		3.1	%
- International, principally Europe					9.8	%		9.6	%
-Total, as above					7.2	%		4.7	%

Notes:
- Data exclude discontinued operations.
- Operating (loss) profit and margins by segment and geographic area are before general corporate expense.
- See 2011 Costs and Charges for Business Rationalizations and Other Initiatives — page 5.

Page 3

MASCO CORPORATION
Quarterly Segment Data — 2011
Including Costs and Charges for Business Rationalizations and Other Initiatives
(dollars in millions)


	Year	Qtr. 4	Qtr. 3	Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products				$	330		$	307
- Plumbing Products					761			710
- Installation and Other Services					294			254
- Decorative Architectural Products					492			375
- Other Specialty Products					145			126

-Total				$	2,022		$	1,772


- North America				$	1,563		$	1,333
- International, principally Europe					459			439

-Total, as above				$	2,022		$	1,772


Operating (Loss) Profit:
- Cabinets and Related Products				$	(27	)	$	(50	)
- Plumbing Products					95			84
- Installation and Other Services					(26	)		(40	)
- Decorative Architectural Products					90			69
- Other Specialty Products					—			(10	)

-Total				$	132		$	53


- North America				$	87		$	11
- International, principally Europe					45			42

-Total, as above				$	132		$	53


General Corporate Expense (GCE), Net					36			32

Charge for Litigation Settlement					5			—


Operating Profit (after GCE and Adjustments)					91			21

Other Income (Expense), Net					(33	)		(42	)


Income (Loss) before Income Taxes				$	58		$	(21	)


Margins:
- Cabinets and Related Products					-8.2	%		-16.3	%
- Plumbing Products					12.5	%		11.8	%
- Installation and Other Services					-8.8	%		-15.7	%
- Decorative Architectural Products					18.3	%		18.4	%
- Other Specialty Products					0.0	%		-7.9	%
-Total					6.5	%		3.0	%

- North America					5.6	%		0.8	%
- International, principally Europe					9.8	%		9.6	%
-Total, as above					6.5	%		3.0	%

Notes:
- Data exclude discontinued operations.
- Operating (loss) profit and margins by segment and geographic area are before general corporate expense.
- See 2011 Costs and Charges for Business Rationalizations and Other Initiatives — page 5.

Page 4

MASCO CORPORATION
Quarterly Segment Data — 2011
Costs and Charges for Business Rationalizations and Other Initiatives
(in millions)


	Year	Qtr. 4	Qtr. 3	Qtr. 2		Qtr. 1
*Business Rationalizations & Other Initiatives*
- Cabinets and Related Products				$	6	$	21
- Plumbing Products					5		6
- Installation and Other Services					2		2
- Decorative Architectural Products					—		1
- Other Specialty Products					—		—

-Total				$	13	$	30


- North America				$	13	$	30
- International, principally Europe					—		—

-Total, as above				$	13	$	30

General Corporate Expense (GCE), Net					2		2


-Total				$	15	$	32

Notes:
- Data exclude discontinued operations.
- Business rationalizations and other initiatives include costs and charges for business consolidations, plant closures, headcount - reductions, system implementations and other initiatives.

Page 5

MASCO CORPORATION
Quarterly Segment Data — 2010
Excluding Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)


	Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products	$	1,464		$	304		$	357		$	400		$	403
- Plumbing Products		2,692			661			686			682			663
- Installation and Other Services		1,147			273			292			309			273
- Decorative Architectural Products		1,693			336			463			505			389
- Other Specialty Products		596			161			159			152			124

-Total	$	7,592		$	1,735		$	1,957		$	2,048		$	1,852


- North America	$	5,929		$	1,312		$	1,528		$	1,659		$	1,430
- International, principally Europe		1,663			423			429			389			422

-Total, as above	$	7,592		$	1,735		$	1,957		$	2,048		$	1,852


Operating (Loss) Profit:
- Cabinets and Related Products	$	(71	)	$	(46	)	$	(27	)	$	6		$	(4	)
- Plumbing Products		347			70			100			92			85
- Installation and Other Services		(106	)		(25	)		(20	)		(21	)		(40	)
- Decorative Architectural Products		350			50			104			109			87
- Other Specialty Products		19			3			11			11			(6	)

-Total	$	539		$	52		$	168		$	197		$	122


- North America	$	373		$	21		$	116		$	160		$	76
- International, principally Europe		166			31			52			37			46

-Total, as above	$	539		$	52		$	168		$	197		$	122


General Corporate Expense (GCE), Net		109			25			27			27			30


Operating Profit (after GCE and Adjustments)		430			27			141			170			92

Other Income (Expense), Net		(278	)		(55	)		(64	)		(103	)		(56	)


(Loss) Income before Income Taxes	$	152		$	(28	)	$	77		$	67		$	36


Margins:
- Cabinets and Related Products		-4.8	%		-15.1	%		-7.6	%		1.5	%		-1.0	%
- Plumbing Products		12.9	%		10.6	%		14.6	%		13.5	%		12.8	%
- Installation and Other Services		-9.2	%		-9.2	%		-6.8	%		-6.8	%		-14.7	%
- Decorative Architectural Products		20.7	%		14.9	%		22.5	%		21.6	%		22.4	%
- Other Specialty Products		3.2	%		1.9	%		6.9	%		7.2	%		-4.8	%
-Total		7.1	%		3.0	%		8.6	%		9.6	%		6.6	%

- North America		6.3	%		1.6	%		7.6	%		9.6	%		5.3	%
- International, principally Europe		10.0	%		7.3	%		12.1	%		9.5	%		10.9	%
-Total, as above		7.1	%		3.0	%		8.6	%		9.6	%		6.6	%

Notes:
-	Data exclude discontinued operations.
-	Operating (loss) profit and margins by segment and geographic area are before general corporate expense.
-	See 2010 Costs and Charges for Business Rationalizations and Other Initiatives — page 8.

Page 6

MASCO CORPORATION
Quarterly Segment Data — 2010
Including Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)


	Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1

Net Sales:
- Cabinets and Related Products	$	1,464		$	304		$	357		$	400		$	403
- Plumbing Products		2,692			661			686			682			663
- Installation and Other Services		1,147			273			292			309			273
- Decorative Architectural Products		1,693			336			463			505			389
- Other Specialty Products		596			161			159			152			124

-Total	$	7,592		$	1,735		$	1,957		$	2,048		$	1,852


- North America	$	5,929		$	1,312		$	1,528		$	1,659		$	1,430
- International, principally Europe		1,663			423			429			389			422

-Total, as above	$	7,592		$	1,735		$	1,957		$	2,048		$	1,852


Operating (Loss) Profit:
- Cabinets and Related Products	$	(250	)	$	(137	)	$	(61	)	$	(37	)	$	(15	)
- Plumbing Products		331			64			97			86			84
- Installation and Other Services		(834	)		(747	)		(22	)		(23	)		(42	)
- Decorative Architectural Products		345			45			104			109			87
- Other Specialty Products		19			3			11			11			(6	)

-Total	$	(389	)	$	(772	)	$	129		$	146		$	108


- North America	$	(543	)	$	(800	)	$	79		$	114		$	64
- International, principally Europe		154			28			50			32			44

-Total, as above	$	(389	)	$	(772	)	$	129		$	146		$	108


General Corporate Expense (GCE), Net		110			26			27			27			30


Operating Profit (after GCE and Adjustments)		(499	)		(798	)		102			119			78

Other Income (Expense), Net		(278	)		(55	)		(64	)		(103	)		(56	)


(Loss) Income before Income Taxes	$	(777	)	$	(853	)	$	38		$	16		$	22


Margins:
- Cabinets and Related Products		-17.1	%		-45.1	%		-17.1	%		-9.3	%		-3.7	%
- Plumbing Products		12.3	%		9.7	%		14.1	%		12.6	%		12.7	%
- Installation and Other Services		-72.7	%		-273.6	%		-7.5	%		-7.4	%		-15.4	%
- Decorative Architectural Products		20.4	%		13.4	%		22.5	%		21.6	%		22.4	%
- Other Specialty Products		3.2	%		1.9	%		6.9	%		7.2	%		-4.8	%
-Total		-5.1	%		-44.5	%		6.6	%		7.1	%		5.8	%

- North America		-9.2	%		-61.0	%		5.2	%		6.9	%		4.5	%
- International, principally Europe		9.3	%		6.6	%		11.7	%		8.2	%		10.4	%
-Total, as above		-5.1	%		-44.5	%		6.6	%		7.1	%		5.8	%


Notes:
-	Data exclude discontinued operations.
-	Operating (loss) profit and margins by segment and geographic area are before general corporate expense.
-	See 2010 Costs and Charges for Business Rationalizations and Other Initiatives — page 8.

Page 7

MASCO CORPORATION
Quarterly Segment Data — 2010
Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(in millions)


	Year		Qtr. 4		Qtr. 3		Qtr. 2		Qtr. 1
*Business Rationalizations & Other Initiatives*
- Cabinets and Related Products	$	179	$	91	$	34	$	43	$	11
- Plumbing Products		15		5		3		6		1
- Installation and Other Services		8		2		2		2		2
- Decorative Architectural Products		5		5		—		—		—
- Other Specialty Products		—		—		—		—		—

-Total	$	207	$	103	$	39	$	51	$	14


- North America	$	195	$	100	$	37	$	46	$	12
- International, principally Europe		12		3		2		5		2

-Total, as above	$	207	$	103	$	39	$	51	$	14

General Corporate Expense (GCE), Net		1		1		—		—		—


-Total	$	208	$	104	$	39	$	51	$	14


*Goodwill and Other Intangible Assets Impairment*
- Cabinets and Related Products	$	—	$	—	$	—	$	—	$	—
- Plumbing Products		1		1		—		—		—
- Installation and Other Services		720		720		—		—		—
- Decorative Architectural Products		—		—		—		—		—
- Other Specialty Products		—		—		—		—		—

-Total	$	721	$	721	$	—	$	—	$	—


- North America	$	721	$	721	$	—	$	—	$	—
- International, principally Europe		—		—		—		—		—

-Total, as above	$	721	$	721	$	—	$	—	$	—


Notes:
-	Data exclude discontinued operations.
-	Business rationalizations and other initiatives include costs and charges for business consolidations, plant closures, headcount reductions, system implementations and other initiatives.

Page 8

MASCO CORPORATION
Other Income (Expense), Net
2011 & 2010 — by Quarter — Unaudited
(in millions)


	2011									2010
	Year	Qtr. 4	Qtr. 3	Qtr. 2			Qtr. 1			Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Interest Expense				$	(64	)	$	(63	)	$	(251	)	$	(63	)	$	(63	)	$	(67	)	$	(58	)

Income from Cash and Cash Investments					1			2			6			2			2			1			1

Other Interest Income					—			—			1			—			—			—			1

Realized Gains (Losses) from Financial Investments, Net					33			17			9			11			(3	)		1			—

Impairment Charges for Financial Investments					—			—			(34	)		(1	)		—			(33	)		—

Other, Net					(3	)		2			(9	)		(4	)		—			(5	)		—


Total Other Income (Expense), Net				$	(33	)	$	(42	)	$	(278	)	$	(55	)	$	(64	)	$	(103	)	$	(56	)


Notes:
-	Data exclude discontinued operations.
-	Other, Net, in 2011 includes currency gains (losses) of $2 million and $(3) million for the first and second quarters, respectively.
-	Other, Net, in 2010 includes currency (losses) gains of ($1) million, ($5) million, $4 million and $ for the first, second, third and fourth quarters, respectively.

Page 9

MASCO CORPORATION
Condensed Consolidated Balance Sheets — Unaudited
(in millions)


	June 30,		December 31,
	2011		2010
Assets
Current Assets:
Cash and Cash Investments	$	1,611	$	1,715
Receivables		1,188		888
Inventories		901		732
Prepaid Expenses and Other		131		129

Total Current Assets		3,831		3,464
Property and Equipment, Net		1,698		1,737
Goodwill		2,399		2,383
Other Intangible Assets, Net		266		269
Other Assets		224		287

Total Assets	$	8,418	$	8,140


Liabilities
Current Liabilities:
Notes Payable	$	65	$	66
Accounts Payable		921		602
Accrued Liabilities		814		819

Total Current Liabilities		1,800		1,487
Long-Term Debt		4,027		4,032
Deferred Income Taxes and Other		1,054		1,039

Total Liabilities		6,881		6,558
Shareholders’ Equity		1,537		1,582

Total Liabilities and Shareholders’ Equity	$	8,418	$	8,140

Page 10

MASCO CORPORATION
GAAP Reconciliation of Sales Growth
Excluding the Effect of Acquisitions and Currency Translation — Unaudited
(dollars in millions)


	Three Months Ended
	June 30,
	2011			2010		% Δ
Net Sales, As Reported	$	2,022		$	2,048		-1	%
- Acquisitions		—			—
- Currency Translation		(54	)		—

Net Sales, Excluding Acquisitions and Currency Translation	$	1,968		$	2,048		-4	%


North America Net Sales, As Reported	$	1,563		$	1,659		-6	%
- Acquisitions					—
- Currency Translation		(4	)		—

North America Net Sales, Excluding Acquisitions and Currency Translation	$	1,559		$	1,659		-6	%


International Net Sales, As Reported	$	459		$	389		18	%
- Acquisitions		—			—
- Currency Translation		(50	)		—

International Net Sales, Excluding Acquisitions and Currency Translation	$	409		$	389		5	%


	Six Months Ended
	June 30,
	2011			2010		% Δ
As Reported	$	3,794		$	3,900		-3	%
- Acquisitions		—			—
- Currency Translation		(54	)		—

Net Sales, Excluding Acquisitions and Currency Translation	$	3,740		$	3,900		-4	%


North America Net Sales, As Reported	$	2,896		$	3,089		-6	%
- Acquisitions					—
- Currency Translation		(7	)		—

North America Net Sales, Excluding Acquisitions and Currency Translation	$	2,889		$	3,089		-6	%


International Net Sales, As Reported	$	898		$	811		11	%
- Acquisitions		—			—
- Currency Translation		(47	)		—

International Net Sales, Excluding Acquisitions and Currency Translation	$	851		$	811		5	%

Notes:

- Data exclude discontinued operations.

- The Company presents information comparing results from one period to another excluding the results of businesses acquired in order to assess the performance of the underlying businesses and to assess to what extent acquisitions are impacting growth.

- The Company also presents information comparing results of International operations from one period to another using constant exchange rates. Current period results for foreign entities are converted into U.S. dollars using the prior period’s exchange rates, rather than exchange rates for the current period. The Company presents this information to assess how the underlying businesses performed in local currencies before taking into account currency fluctuations.

- The currency translation effect on North American net sales includes currency translation related to Canadian business units.

Page 11

MASCO CORPORATION
GAAP Reconciliation of Operating Profit and Margins — Unaudited
(dollars in millions)


	Three Months Ended June 30,
	2011					2010
	$		Margin			$		Margin
Operating Profit, As Reported	$	91		4.5	%	$	119		5.8	%

Business Rationalizations and Other Initiatives		15					51

Charge for Litigation Settlement		5					—


Operating Profit, As Reconciled	$	111		5.5	%	$	170		8.3	%


	12 Months Ended June 30,
	2011						2010
	$			Margin			$		Margin
Operating (Loss) Profit, As Reported	$	(584	)		-7.8	%	$	138		1.8	%

Impairment Charges for Goodwill and Other Intangible Assets		721						262

Business Rationalizations and Other Initiatives		190						113

Charge for Litigation Settlement, after tax		3						5


Operating Profit, As Reconciled	$	330			4.4	%	$	518		6.6	%

Notes:

- Data exclude discontinued operations.

- The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.

Page 12

Masco (MAS) 8-KMasco Corporation Reports Second Quarter 2011 Results