FOR IMMEDIATE RELEASE Contact: Samuel Cypert
313-792-6646
MASCO CORPORATION REPORTS
RECORD EARNINGS FOR 1997
Taylor, Michigan (February 18, 1998)-Masco Corporation (NYSE: MAS)
today reported that net income for the year ended December 31, 1997 increased
approximately 30 percent to a record $382.4 million from $295.2 million in 1996.
Fourth quarter 1997 net income increased 26 percent to $105.5 million from $83.4
million in the 1996 fourth quarter.
Net sales from continuing operations for 1997 were also a record $3.76
billion, an increase of 16 percent over the $3.24 billion in sales reported for
all of 1996. For the fourth quarter of 1997, net sales increased 17 percent to
$990 million compared with $843 million for the comparable 1996 period.
Earnings per share increased approximately 28 percent to a record $2.35
in 1997 from $1.84 in 1996 (basic E.P.S. of $2.39 and $1.87 and diluted E.P.S.
of $2.30 and $1.82 for 1997 and 1996, respectively).
Earnings per share for the 1997 fourth quarter were $.64 compared with
$.52 per share for the 1996 fourth quarter. Fourth quarter 1997 earnings per
share benefited by approximately $.02 per share from a reduction in the income
tax rate due primarily to the partial utilization of the Company's capital loss
carryforward benefit. (Basic E.P.S. was $.65 and $.53 and diluted E.P.S. was
$.62 and $.51 for the fourth quarter of 1997 and 1996, respectively.)
"We exceeded in 1997 many of our operational and financial objectives
including our increased sales, earnings and profit margin goals," said Masco
Chairman Richard A. Manoogian. "Our improved performance is a reflection of our
commitment to increase shareholder value by focusing on growth in our core
businesses, by containing costs and by improving profitability. Assuming that
the economy continues its present moderate rate of growth, Masco should achieve
another record year in 1998."
Masco Corporation is one of the world's leading manufacturers of
faucets, cabinets, locks and other brand name consumer products for the home
improvement and building markets.
MASCO CORPORATION REPORTS
RECORD EARNINGS FOR 1997
Three Months Ended Twelve Months Ended
December 31 December 31
1997 1996 1997 1996
Net Sales $ 990,000 $ 843,000 $3,760,000 $3,237,000
Cost of Sales 626,550 549,170 2,378,250 2,048,070
-------- -------- --------- ---------
Gross Profit 363,450 293,830 1,381,750 1,188,930
Selling, General and
Administrative Expenses 202,630 176,090 775,930 696,290
Amortization of
Acquired Goodwill 5,820 3,540 18,720 12,140
-------- -------- -------- ---------
Operating Profit 155,000 114,200 587,100 480,500
Other Income, Net 14,400 35,500 43,800 22,200
--------- -------- -------- ---------
Income Before
Income Taxes 169,400 149,700 630,900 502,700
Income Taxes 63,900 66,300 248,500 207,500
--------- -------- -------- ----------
Net Income $ 105,500 $ 83,400 $ 382,400 $ 295,200
--------- -------- -------- --------
--------- -------- -------- --------
Earnings Per Share (A) $ .64 $ .52 $ 2.35 $ 1.84
--------- --------- -------- --------
--------- --------- -------- --------
Average Shares 165,300 160,800 163,000 160,600
Outstanding --------- --------- -------- --------
--------- --------- -------- --------
Amounts in thousands except per share data.
(A) For 1997 and 1996, respectively, basic E.P.S. was $2.39 and $1.87 and
diluted E.P.S. was $2.30 and $1.82. For the fourth quarter of 1997 and 1996,
respectively, basic E.P.S. was $.65 and $.53 and diluted E.P.S. was $.62 and
$.51.