Profile: Masco Corporation (MAS.N)

Masco Corporation manufactures, distributes and installs home improvement and building products. The Company operates in five segments: Cabinets and Related Products, which includes assembled and ready-to-assemble kitchen and bath cabinets, home office workstations, entertainment centers, storage products, bookcases, and kitchen utility products; Plumbing Products, which includes faucets plumbing fittings and valves, showerheads and hand showers, bathtubs and shower enclosures, and spas; Installation and Other Services, which includes the sale, installation and distribution of insulation and other building products; Decorative Architectural Products, which includes paints and stains, and door, window and other hardware, and Other Specialty Products, which includes windows, window frame components and patio doors, staple gun tackers, staples and other fastening tools. In May 2008, it announced that it has sold its Europe-based, The Heating Group, to an affiliate of Vaessen Industries. During the year ended December 31, 2008, approximately 78% of the Company’s sales were generated by North American operations.

Cabinets and Related Products

In North America, the Company manufactures and sells economy, stock, semi-custom, assembled and ready-to-assemble cabinetry for kitchen, bath, storage, home office and home entertainment applications in a range of styles. In Europe, Masco manufactures and sells assembled and ready-to-assemble kitchen, bath, storage, home office and home entertainment cabinetry. These products are sold under a number of trademarks, including KRAFTMAID, DISTINCTIONS, TVILUM- SCANBIRK and WOODGATE primarily to dealers and home centers, and under the names MERILLAT, MOORES and QUALITY CABINETS primarily to distributors and homebuilders for both the home improvement and new home construction markets.

Plumbing Products

The Company sells a variety of faucet and showering devices that are manufactured by or for the Company. The Company’s plumbing products are sold in North America and Europe under various names, including DELTA, PEERLESS, HANSGROHE, BRASSTECH, BRIZO, BRISTANt, DAMIXA, NEWPORT BRASS, AXOR, ALSONS, SIRRUS and PLUMB SHOP. Products include single- and double-handle faucets, showerheads, handheld showers and valves, which are sold to retail accounts and to distributors who sell these products to plumbers, building contractors, remodelers, smaller retailers and others. The Company sells kitchen and bath faucets, showering devices and various other plumbing products for European markets under the brand names HANSGROHE, BRISTAN, AXOR and DAMIXA, which are sold through multiple distribution channels.

The Company’s spas are manufactured and sold under HOT SPRING, CALDERA and other trademarks directly to independent dealers. Other plumbing products manufactured and sold by the Company include AQUA GLASS, MIROLIN and AMERICAN SHOWER & BATH acrylic and gelcoat bath and shower enclosure units, shower trays and laundry tubs, which are sold primarily to wholesale plumbing distributors and home center retailers for the North American home improvement and new home construction markets. HUPPE and BREUER shower enclosures are sold by the Company through wholesale channels and home centers primarily in Germany and western Europe.

HERITAGE ceramic and acrylic bath fixtures and faucets are principally sold in the United Kingdom directly to retailers. The Plumbing Products segment also include brass and copper plumbing system components and other plumbing specialties, which are sold to plumbing, heating and hardware wholesalers and to home center retailers, hardware stores, building supply outlets and other mass merchandisers. These products are marketed in North America for the wholesale trade under the BRASSCRAFT and BRASSTECH trademarks. During 2008, the Company’s Delta Faucet business introduced a water delivery system, DIAMOND Seal Technology.

Installation and Other Services

The Company’s Installation and Other Services segment sells installed building products and distributes building products primarily to the new home construction industry, and to a lesser extent, the commercial construction market, throughout the United States. During 2008, the segment represented 11% of the Company’s consolidated net sales. Its offering of installed building products includes insulation, windows and paint. Distributed products include insulation, insulation accessories, gutters, roofing and fireplaces. Installed building products are sold primarily to production homebuilders by the Company’s network of branch locations throughout United States. Distributed products are sold primarily to contractors and dealers from distribution centers in various parts of the United States.

Decorative Architectural Products

The Company manufactures architectural coatings, including paints, specialty paint products, stains, varnishes and waterproofing products. The products are sold in the United States and Canada under the names BEHR, KILZ and EXPRESSIONS to the do-it-yourself and professional markets through home centers, paint stores and other retailers. During 2008, the net sales of architectural coatings comprised approximately 15% of the Company’s consolidated net sales. The BEHR brand is sold through The Home Depot. The Decorative Architectural Products segment also includes LIBERTY cabinet, door, window and other hardware, which is manufactured for the Company and sold to home centers, other retailers, original equipment manufacturers and wholesale markets. Decorative bath hardware and shower accessories are sold under the names FRANKLIN BRASS and DECOR BATHWARE to distributors, home center retailers and other retailers.

Other Specialty Products

Masco manufactures and sells vinyl, fiberglass and aluminum windows and patio doors under the MILGARD name to the new home construction and home improvement markets, principally in the western United States. MILGARD products are sold primarily through dealers and, to a lesser extent, direct to production homebuilders and through lumberyards and home center retailers. In the United Kingdom, the Company manufactures and sells windows, related products and components under names, including GRIFFIN, CAMBRIAN, PREMIER and DURAFLEX. The Company manufactures and sells a range of manual and electric staple gun tackers, staples and other fastening tools under the names ARROW and POWERSHOT. These products are sold through various distribution channels, including home center and other retailers and wholesalers.

The Company competes with American Woodmark Corporation, Fortune Brands, Inc., Cardell Cabinetry, Stanley, Jeld-Wen, Simonton, Pella and Andersen, Benjamin Moore, Glidden, Olympic, Sherwin-Williams, Valspar, Zinsser, Amerock, Belwith, Umbra, Moen, Globe Union, American Standard, Kohler, Price Pfister, Friedrich Grohe, Lasco, Maax and Jacuzzi.