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MASCO CORPORATION ANNOUNCES RECORD QUARTERLY SALES AND IMPROVED THIRD-QUARTER RESULTS

 TAYLOR, Mich., Nov. 2 /PRNewswire/ -- Net sales of $982 million in the third quarter ended Sept. 30, 1993, were the highest quarterly sales in Masco Corporation's (NYSE: MAS) history, representing a 9-percent increase from the 1992 third quarter. Contributing to the record sales were increases in sales of both building and home improvement products and home furnishings products.
 Operating profit also increased in the third quarter from the comparable 1992 period, although profit margins continue to be affected by the continuing high levels of expense related to cost reduction, market share and growth initiatives.
 Net income for the quarter increased 10 percent to $55.7 million from $50.8 million in the 1992 third quarter, with earnings per share increasing to $.36 from $.33. The 1993 third-quarter net income was reduced as a result of the recent increase in the federal corporate tax rate, most of which relates to a one-time increase in deferred tax reserves. If the corporate tax rate had not been increased, 1993 third- quarter earnings would have increased 21 percent to approximately $.40 per share.
 For the nine months ended Sept. 30, 1993, net sales increased 10 percent and net income increased 17 percent from the comparable 1992 period.
 The Board of Directors of Masco Corporation, considering the company's financial position and favorable long-term outlook, has increased the quarterly dividend to $.17 from $.16 per common share. This marks the 35th consecutive year in which dividends have been increased.
 The company has taken advantage of the recent decline in long-term interest rates and issued $200 million of 7 1/8 percent notes due 2013 and $200 million of 6 1/8 percent notes due 2003, with the proceeds used to reduce bank borrowings.
 Although a number of its markets have been affected by the below- average recovery in the general economy, the company said it has experienced a modest improvement in demand for certain of its products in recent weeks. The company said it continues to be encouraged by its market share growth and expects that sales and earnings for all of 1993 will represent significant improvements in comparison with calendar 1992.
 Longer term, the company said it believes that the several billion dollars it has invested in recent years in acquisitions, capital expenditures, new products and a variety of growth-enhancing initiatives will contribute to significant growth for Masco Corporation in future years.
 Masco Corporation manufactures building, home improvement and home furnishings products for the home and family.
 MASCO CORPORATION
 (Amounts in thousands except per-share data)
 Three Months Ended Nine Months Ended
 Sept. 30 Sept. 30
 1993 1992 1993 1992
 Net sales $982,000 $899,000 $2,876,000 $2,617,000
 Costs and expenses:
 Cost of sales 662,100 605,500 1,933,700 1,764,400
 Selling, general and
 administrative
 expenses 215,200 195,700 637,800 580,800
 Other expense, net 6,600 13,300 33,900 38,300
 883,900 814,500 2,605,400 2,383,500
 Income before tax 98,100 84,500 270,600 233,500
 Income taxes 42,400 33,700 107,100 93,400
 Net income $55,700 $50,800 $163,500 $140,100
 Earnings per share $.36 $.33 $1.07 $.92
 Average shares
 outstanding --- --- 152,700 151,700
 12 Months Ended
 Sept. 30
 1993 1992
 Net sales $3,784,000 $3,423,000
 Costs and expenses:
 Cost of sales 2,550,340 2,343,660
 Selling, general and
 administrative
 expenses 842,420 759,610
 Other expense, net 49,340 108,230
 3,442,100 3,211,500
 Income before tax 341,900 211,500
 Income taxes 135,400 99,100
 Net income $206,500 $112,400
 Earnings per share $1.36 $.73
 Average shares
 outstanding --- ---
 The three months and the nine months ended Sept. 30, 1993, include a charge of approximately $.04 per share related to the recent federal corporate tax rate increase.
 -0- 11/2/93
 /CONTACT: John C. Nicholls Jr., treasurer of Masco Corporation, 313-274-7400/
 (MAS)


CO: Masco Corporation ST: Michigan IN: HOU SU: ERN

ML -- DE005 -- 9519 11/02/93 09:10 EST
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Publication:PR Newswire
Date:Nov 2, 1993
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