Masco Corp.'s (MAS) second-quarter profit more than doubled, due to a $33 million gain related to the sale of financial investments, as well as a prior-year write-down charge, items that masked lower North America sales and weaker margins.
Shares fell 3.2%, to $11.10 in after-hours trading, as the adjusted profit missed analysts' expectations.
The company, which makes KraftMaid cabinets, Delta faucets and Behr paint, has seen sales decline in recent quarters after a federal tax credit spurred home sales last year. The company has said it expects consumers to continue to defer purchasing "big ticket" repair and remodel items this year, while higher commodity costs are also a concern.
Still, President and Chief Executive Tim Wadhams said sales would have grown 1% excluding cabinet product lines the company no longer sells, reflecting strong sales of plumbing-related products and positive foreign currency translation.
On Monday, Masco reported a profit of $8 million, or 2 cents a share, compared with a year-earlier profit of $3 million, or a penny a share. Excluding the latest quarter's gain, a prior-year write-down and other impacts, earnings fell to 5 cents from 16 cents.
Revenue slid 1.3%, to $2.02 billion.
Analysts polled by Thomson Reuters expected a 7-cent profit on revenue of $1.98 billion.
Gross margin narrowed to 26.9% from 28.4%.
North America sales were down 6%, while international sales jumped 18%.
-By John Kell, Dow Jones Newswires; 212-416-2480; email@example.com