Masco Corporation (MAS) Q2 2023 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen. Welcome to the Masco Corporation's Second Quarter 2023 Conference Call. My name is Michelle, and I will be your operator for today's call. As a reminder, today's conference is being recorded for replay purposes. [Operator Instructions]

I will now turn the call over to Renee Benedict, Director, Investor Relations and FP&A. You may begin.

Renee Benedict

Thank you, Michelle, and good morning. Welcome to Masco Corporation's 2023 second quarter conference call.

With me today are Keith Allman, President and CEO of Masco; and David Chaika, Masco's Interim Chief Financial Officer.

Our second quarter earnings release and the presentation slides are available on our website under Investor Relations. Following our remarks, we will open the call for analyst questions. Please limit yourself to one question with one follow-up. If we can’t take your question now, please call me directly at 313-792-5500.

Our statements today will include our views about our future performance, which constitute forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. We described these risks and uncertainties in our risk factors and other disclosures in our Form 10-K and our Form 10-Q that we filed with the Securities and Exchange Commission.

Our statements will also include non-GAAP financial metrics. Our references to operating profit and earnings per share will be as adjusted, unless otherwise noted. We reconcile these adjusted metrics to GAAP in our earnings release and presentation slides, which are available on our website under Investor Relations.

With that, I'll now turn the call over to Keith.

Keith Allman

Thank you, Renee. Good morning, everyone, and thank you for joining us today. Please turn to Slide 5. I'm pleased with our performance in the first half of the year. We have demonstrated the resiliency of our business and our ability to mitigate the impacts of volatile market conditions, while maintaining our focus on growth, productivity and shareholder returns.

In the second quarter, our top line decreased 10% against a strong 8% comp. Volume was down 12%, partially offset by pricing actions of 4%. While sales were down $225 million, our operating profit only declined $10 million due to strong cost recovery and improved operational efficiencies. This solid execution resulted in operating profit margin expansion of 140 basis points and a decremental margin of only 4%.