TAYLOR, MICH. ( TheStreet) -- Home improvement and building-products maker Masco ( MAS) is not so confident that the housing market is poised for a turnaround.

The company posted a 33% drop in second-quarter earnings on Monday, and said it still expects to record a full-year loss.

Nonetheless, investors, still excited over better-than-expected new home sales, sent shares of the company up 5% to $11.59 in afternoon trading.

During the quarter, Masco earned $63 million, or 15 cents a share, compared with $94 million, or 23 cents a share, in the year-ago period. Analysts expected a profit of 1 cent a share.

The company's sales fell 23% to $2 million from $2.6 million last year. In North America sales sank 21%, while international sales plunged 30%.

The company attributed the decline to "significantly lower sales volume of new home construction products and services, as well as a continued decline in consumer spending for home improvement products in both North American and international markets, as well as a less favorable product mix."

But Masco did see higher sales in paints and stains, a trend also being acknowledged by home improvement retailers like Home Depot ( HD) and Lowe's ( LOW). It seems while consumers are not quite willing to undertake major household renovations, they are finding smaller ways to spruce up their homes.

You know, throw a little paint on it. It'll be fine.

Looking ahead, Masco predicts that 2009 housing starts will fall 40% to 550,000 units as consumer spending for home improvement products both in the states and abroad will continue at depressed levels in the near-term.

On that note, Masco expects to a record a loss between 5 cents and 25 cents in 2009, but this is slightly better than prior forecast of a loss between 15 cents and 35 cents.

Housing data released earlier today painted a rosier picture. New home sales grew 11% in June, their strongest pace since November 2008. --Jeanine Poggi reported this story from New York.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

If you liked this article you might like

What's Behind the Hound of Hades' Stock Market Rampage

What's Behind the Hound of Hades' Stock Market Rampage

Masco Has a Strong Chart and Indicators

Masco Has a Strong Chart and Indicators

Masco, Diplomat Pharmacy, Vail Resorts: 'Mad Money' Lightning Round

Masco, Diplomat Pharmacy, Vail Resorts: 'Mad Money' Lightning Round

What it Takes to Power This Bull: Cramer's 'Mad Money' Recap (Thursday 11/30/17)

What it Takes to Power This Bull: Cramer's 'Mad Money' Recap (Thursday 11/30/17)

19 Amazing Stocks to Buy With Economy Doing Great

19 Amazing Stocks to Buy With Economy Doing Great