Masco Outlook Sees Sales Drop But Profit Margins Holding Up on Pricing and Cost Cuts
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Masco's 2023 outlook calls for a 10% sales decline and 60 bps drop in adjusted operating margin to 15%.
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Through Q3, Masco is on track for a 10% revenue decline but profit margins have been better than expected.
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Management raised full-year margin guidance to 16.5% from 16%, compared to 15.6% last year.
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Masco expects flattish repair and remodel spending in 2024, but aims to outperform the market.
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Profit margins have been resilient due to favorable price/cost and cost reductions. Both segments saw sales drop 10% but strong margin expansion.