Masco Sales Achieve 2nd Quarter Record

Taylor, MI — Masco Corporation, the parent company of several of the kitchen and bath industry’s leading manufacturers, has reported that net sales from continuing operations for the quarter ended June 30, 2006 hit a second-quarter record.

The publicly traded Masco, headquartered in Taylor, MI, reported that sales for the three-month period from April through June of 2006 rose 3%, to $3.4 billion, compared with $3.3 billion in the second quarter of 2005.

Income from continuing operations was $289 million, compared with $267 million for the comparable period of 2005, the company reported.
North American net sales increased 4% while international net sales were flat, said Masco, whose business units include KraftMaid, Merillat Industries, Mill’s Pride, Quality Cabinets and Delta Faucet, among other major building product companies.

While the company’s 2006 second-quarter operating earnings exceeded expectations, Masco’s results continued to be adversely affected “by increases in commodity, energy and freight costs, as well as recent declines in housing activity and a moderation in consumer spending, partially offset by profit improvement programs and selling price increases,” Masco officials said.

Corporate officials added that the company continues to implement additional selling price increases in an effort to offset commodity and energy-related cost increases.