Masco Corporation reported its second quarter results.

2023 Second Quarter Results
On a reported basis, compared to second quarter 2022:
• Net sales decreased 10 percent to $2,127 million; in local currency, net sales decreased 9 percent
• In local currency, North American sales decreased 10 percent and international sales decreased 8 percent
• Gross margin increased 350 basis points to 36.2 percent from 32.7 percent
• Operating profit decreased 1 percent to $403 million from $408 million
• Operating margin increased 160 basis points to 18.9 percent from 17.3 percent
• Net income decreased to $1.16 per share, compared to $1.18 per share

Compared to second quarter 2022, results for key financial measures, as adjusted for certain items and with a normalized tax rate of 24 percent, were as follows:
• Gross margin increased 320 basis points to 36.2 percent from 33.0 percent
• Operating profit decreased 2 percent to $404 million from $414 million
• Operating margin increased 140 basis points to 19.0 percent from 17.6 percent
• Net income increased 3 percent to $1.19 per share, compared to $1.15 per share
• Liquidity at the end of the second quarter was $1,380 million (including availability under revolving credit facility)
• Plumbing Products’ net sales decreased 11 percent; in local currency, net sales decreased 10 percent
• Decorative Architectural Products’ net sales decreased 8 percent

“In the first half of the year, we demonstrated our ability to mitigate the impacts of a lower demand environment with a focus on productivity and shareholder returns,” said Keith Allman, Masco president and CEO. “In the second quarter, our pricing actions and improved operational efficiency helped drive adjusted operating profit margin expansion of 140 basis points.

“At the same time, we continued to execute on our balanced capital deployment strategy and returned $89 million to shareholders through dividends and share repurchases in the quarter, while announcing a strategic bolt-on with the anticipated addition of Sauna360 Group Oy to expand our spa and wellness product offerings,” Allman added.

“As a result of our strong execution during the first half of the year, we now anticipate adjusted earnings per share in the range of $3.50 to $3.65 per share for 2023, up from our previous expectation of $3.10 to $3.40 per share,” Allman continued. “While the near-term demand environment remains challenging, the long-term fundamentals of our repair and remodel markets continue to be strong.”