Masco posts quarterly losses; to cut 8,000 jobs in 1Q

02/15/07 - newratings.com

NEW YORK, February 15 (newratings.com) – Home improvement and building products manufacturer Masco Corp (MSQ) Wednesday announced quarterly losses for the first time in five years, while guiding to lower-than-expected profits for 2007. The company also announced plans to cut its US workforce by 16% due to the ongoing slump in the country’s housing segment.

Masco said its losses in the three months stood at $187 million, as compared to profits of $173 million in the year-ago quarter. The company’s revenues fell to $2.95 billion in the fourth quarter, from $3.1 billion in the same period a year earlier. Masco cited lower sales following a slowdown in the construction of new homes for its poor performance in the latest quarter. The company added that it will cut 8,000 jobs by the end of the first quarter, including 1,000 salaried positions.

Masco said it will incur significant severance costs, while adding that its 2007 earnings could be less than $1.50 per share if the current slump in the housing segment continues. The company said it could post earnings of $1.80 per share or above if the housing market scenario improves.