Masco Corporation reported its results for the fourth quarter and full year of 2022.

2022 Fourth Quarter Results
• On a reported basis, compared to fourth quarter 2021:
• Net sales decreased 5% to $1,923 million; in local currency, net sales decreased 2%
• In local currency, North American sales decreased 5% and international sales increased 7%
• Gross margin decreased 230 basis points to 28.3% from 30.6%
• Operating margin decreased 120 basis points to 9.6% from 10.8%
• Net income decreased to $0.51 per share, compared to $0.55 per share

2022 Full Year Highlights
• Sales for the year increased 4% to $8,680 million; in local currency, sales increased 6%
• Operating profit declined 8% to $1,297 million; adjusted operating profit declined 7% to $1,355 million
• Returned $1,172 million to shareholders through share repurchases and dividends
• Earnings per share from continuing operations for the year grew 124% to $3.63 per share; adjusted earnings per share increased 2% to $3.77 per share from $3.70 per share

“In the fourth quarter, demand softened across product categories in North America, partially offset by selling price increases,” said Keith Allman, Masco’s president and CEO. “International markets remained strong with sales growth of 7% in local currency. Lower volumes, foreign currency and higher operational costs pressured operating margins in the quarter.

“For the full year 2022, we delivered 4% sales growth against a 17% comp in 2021, and 2% adjusted earnings per share growth,” continued Allman. “In 2022, despite higher operational costs and softening demand, we delivered earnings growth for our shareholders and executed our capital deployment strategy by returning approximately $1.2 billion to shareholders in the form of share repurchases and dividends.

“In 2023, we believe the near-term demand environment will remain challenging,” said Allman. “We are preparing for volumes overall to be down in the low double-digit range and anticipate adjusted earnings per share to be in the range of $3.10 to $3.40 per share. Despite the expected near-term market softness, we believe the long-term fundamentals of our repair and remodel markets remain strong. We are focused on capitalizing on these positive long-term demand trends by improving our margins and continuing to invest in growth opportunities. With our industry leading repair and remodel-oriented products in diverse channels, strong balance sheet, and disciplined capital allocation, we believe Masco is well positioned to deliver long-term shareholder value creation.”