Taylor, MI — Masco Corp., the parent company of several leading kitchen and bath product manufacturers, has reported that net sales in the third quarter of 2006 increased 1%, to $3.3 billion, compared to the same quarter a year earlier.
The publicly traded Masco, located here, noted that North American net sales declined 1% during the three-month period ended Sept. 30, 2006, while international net sales rose 10%. Net income for the third quarter was $252 million, down from the $262 million posted in the third quarter of 2005.
The company’s financial results “continued to be adversely affected by accelerating declines in housing activity, a moderation in consumer spending and increased commodity costs, partially offset by profit improvement programs and selling price increases,” Masco officials noted.
The company reported it has implemented additional selling price increases in an effort to partially offset commodity cost increases.
A softening of incoming orders for building products and services along with a forecast, deeper-than-expected decline in year-over-year single-family housing starts for the end of 2006 are expected to result in the company’s fourth quarter net sales being down mid-single digits compared with the fourth quarter of 2005, the company said.
Masco’s brands include KraftMaid, Merillat and Delta Faucet.