Masco Reports 15 Pct Decline In 3Q Profit

TAYLOR, Mich. (AP) — Masco Corp. said Monday its third-quarter earnings fell 15 percent, partly due to declines in sales of new home construction products and services. But the building-products maker boosted its 2009 profit forecast.

Net income slid to $28 million, or 8 cents per share, for the three months ended Sept. 30. That compares with $33 million, or 9 cents per share, during the same period a year earlier.

Cost cuts related to plant closures, staff cuts and other initiatives led to costs and pretax charges of $21 million, or 4 cents per share after tax, during the quarter. A year earlier, they amounted to $15 million, or 5 cents per share.

Operating income rose to 14 cents per share from 9 cents per share in the same quarter of 2008, when an unusually high tax rate reduced earnings. At a normal tax rate of 36 percent, the year-earlier results would have been 12 cents per share.

Sales dropped nearly 17 percent to $2.09 billion from $2.51 billion in the year-earlier quarter. North American sales declined 17 percent, while international sales sank 13 percent.