ATLANTA, Feb 11 (Reuters) - Masco Corp, the building products maker, posted a wider fourth-quarter loss on Wednesday as sales plummeted and it recorded charges for cost cuts, sending its shares down 9 percent in extended trading.
The company said it could achieve breakeven profit or a loss for 2009 as home building declines and consumers spend less on home improvement.
The maker of Delta faucets and Behr paint said the net loss widened to $508 million, or $1.45 a share, from $151 million, or 42 cents a share, a year earlier.
Excluding charges for goodwill impairment and cost-cutting, the company had a loss of 5 cents a share, in line with analysts' expectations, according to Reuters Estimates.
Sales fell 25 percent to nearly $2 billion.
Results have slumped at Masco, which derives about 40 percent of its sales from new home construction, as falling home building hurts demand for materials.
Quarterly sales fell 27 percent for cabinets, 22 percent for plumbing products, and 36 percent for installation and other services.
Sales to key retailers, including Home Depot Inc and Lowe's Cos Inc, fell 14 percent in the fourth quarter.
To cope with the downturn, Masco has cut about 40 percent of its North American workforce and closed 17 manufacturing plants since late 2006. In 2008, it cut more than 13,000 jobs.
Housing starts are expected to fall about 35 percent to 550,000 to 600,000 units this year, from 900,000 in 2008, Masco said.
Management is recommending the board cut the quarterly dividend to 7.5 cents a share from 23.5 cents.
Earnings could range from breakeven to a loss of 30 cents a share this year, including charges, as sales fall in the mid-to-high teens on a percentage basis, the company said.
Masco shares fell to $6.76 in extended trading on Wednesday from their close of $7.45 on the New York Stock Exchange.
(Reporting by Karen Jacobs; editing by Jeffrey Benkoe) Keywords: MASCO/ (karen.jacobs@thomsonreuters.com; + 1 404 493-3656; Reuters Messaging: karen.jacobs.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company said it could achieve breakeven profit or a loss for 2009 as home building declines and consumers spend less on home improvement.
The maker of Delta faucets and Behr paint said the net loss widened to $508 million, or $1.45 a share, from $151 million, or 42 cents a share, a year earlier.
Excluding charges for goodwill impairment and cost-cutting, the company had a loss of 5 cents a share, in line with analysts' expectations, according to Reuters Estimates.
Sales fell 25 percent to nearly $2 billion.
Results have slumped at Masco, which derives about 40 percent of its sales from new home construction, as falling home building hurts demand for materials.
Quarterly sales fell 27 percent for cabinets, 22 percent for plumbing products, and 36 percent for installation and other services.
Sales to key retailers, including Home Depot Inc and Lowe's Cos Inc, fell 14 percent in the fourth quarter.
To cope with the downturn, Masco has cut about 40 percent of its North American workforce and closed 17 manufacturing plants since late 2006. In 2008, it cut more than 13,000 jobs.
Housing starts are expected to fall about 35 percent to 550,000 to 600,000 units this year, from 900,000 in 2008, Masco said.
Management is recommending the board cut the quarterly dividend to 7.5 cents a share from 23.5 cents.
Earnings could range from breakeven to a loss of 30 cents a share this year, including charges, as sales fall in the mid-to-high teens on a percentage basis, the company said.
Masco shares fell to $6.76 in extended trading on Wednesday from their close of $7.45 on the New York Stock Exchange.
(Reporting by Karen Jacobs; editing by Jeffrey Benkoe) Keywords: MASCO/ (karen.jacobs@thomsonreuters.com; + 1 404 493-3656; Reuters Messaging: karen.jacobs.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.