Masco

Masco Corporation

Type	Public (NYSE: MAS)
Genre	Construction material
Founded	1929
Founder(s)	Alex Manoogian
Headquarters	Taylor, Michigan, U.S.
Key people	Richard Manoogian (Chairman)[1] Timothy Wadhams (CEO)
Employees	52,000
Website	masco.com

Masco Headquarters, Taylor, Michigan

Masco Corporation is a Fortune 500 company that focuses on manufacturing and distribution of building products and branded consumer products for the home improvement and construction markets.

The company is a leading provider of variety of services including installation of insulation solutions for buildings, and building products such as shelving, windows, cabinetry, fireplaces, portable spas, bathroom accessories, garage doors, and products related to gutters.

By 2003, the parent corporation had sales of $10.9 billion and profit of $806 million. The current CEO is Timothy Wadhams.^[2]

Masco currently employs approximately 52,000 employees and has approximately 6,300 shareholders.^[3] The company is currently ranked at 223 on the Fortune 500, down from 190 in 2007.^[4] As of December 31, 2007, Masco had a little over ten billion dollars in assets, and the company’s total revenue was $11,770.00 billion. Total sales for the company in 2009 were 7.8 billion.^[3][5]

History

Founding and early history

Initially organized in 1929 as Masco Screw Products Company by Alex Manoogian in Taylor, Michigan. The company went public on the Detroit Stock Exchange in 1936.

Masco Screw Products Company produced machined automotive parts for the Detroit automotive companies^[6]. The company’s first contract came in 1930 with the Hudson Motor Company valued at $7,000.00. In 1935, the company's sales reached $100,000 dollars. The following year Masco became a publicly traded company traded on the Detroit Stock Exchange. In 1942, Masco’s sales exceeded $1,000,000 dollars.^[7]

Masco Screw Products grew into the Masco Corporation, a large corporate holding company for numerous acquisitions. Small, family-run businesses were bought out by Masco Corporation with cash and stock in the parent corporation. Between 1997 and 2002, Richard Manoogian, who succeeded his father as chief executive, acquired 42 companies valued at a total of $10 billion dollars.

Alex Manoogian and his wife donated the Manoogian Mansion to the City of Detroit as the official residence of the mayor.

Masco in the 1950s, 1960s and 1970s

In 1952, Manoogian began redesigning the single-handle washerless faucet.^[7] The faucet he created was one of the very first single-handle hot/cold faucets; it is now known as Delta. Delta’s television advertisements were a first for any faucet, and made the product a successful seller. Masco went on to capture the mass market as sales moved from plumbing wholesalers to retail stores.^[6] These steps of production and marketing of the Delta faucet began in 1954, and four years later Delta Faucet’s annual sales exceeded a million dollars.^[7] This was the last year that the company would be referred to as Masco Screw Products Company.

Alex Manoogian, founder, acted as President and Chief Operating Officer (COO) from 1929 until 1967. In 1958 his son Richard joined the company. Richard, having spent nine years with the company, succeeded his father one year after the company moved to Taylor, Michigan. Alex died on July 10, 1996, the same year that his son Richard passed on his COO role to Ray Kennedy, allowing him to assume the position of Chief Executive Officer. In response to Kennedy’s death, Alan Barry was appointed as Masco’s President and COO on April 8th 2003.^[7]

In 1961, Masco Screw Products Company changed its name to Masco Corporation. In 1967, they moved to their current corporate headquarters in Taylor, Michigan. For the first time, in 1969, Masco was listed on the New York Stock Exchange. In 1975, Masco first appeared on the Fortune 500, and Masco’s annual sales exceeded one billion dollars for the first time ever in 1984. One year later, Masco began manufacturing cabinets.^[7]

Founding in the 1980s and 1990s

In 1982 Masco’s earnings did not grow for the first time in 26 years. The next year however, “In 1983, earnings climbed again for this maker of faucets and diverse product mix of builders’ hardware, because of increased housing starts and a strong do-it-yourself market.”^[8]

Masco reorganized its numerous companies; in 1988, the specialty products divisions of Masco Industries and Masco Corporation combined to form TriMas Corporation. Three years after this merger, TriMas was listed on the New York Stock Exchange (NYSE). The remainder of Masco Industries became Masco Tech Inc. and in 1993 was listed on the NYSE. At that point in time three different Masco Companies existed: Masco Corp., Masco Tech., and TriMas Corp.

Two years later, Masco entered the services business, and one year later Masco divested its furniture business. TriMas and Masco Tech merged to form one company offering a wide array of products. Masco announced a 2 for 1 stock split, which was the ninth time the Company had split its shares since 1960 and was the 40th year in a row that its dividends were increased. This merger left two companies, Masco Tech. and Masco Corp.

In 1999 Masco involved itself in the architectural coatings business, and the company’s annual sales topped five billion dollars for the first time.

Recent history

In 1999, Masco Corp acquired Arrow Fastener Co., Inc., a hand tool company expanding its business in the hardware category.

In 2000, Masco Tech. was purchased by a Heartland Industrial Partners, a private equity firm and its name was changed to Metaldyne. Metaldyne is headquartered in Plymouth, Michigan.

In 2001, Masco Corp., or simply Masco, entered the windows business and had operating profits beyond a billion dollars. In 2003 Masco’s annual sales topped ten billion dollars, and Masco increased its quarterly dividend for the 47th consecutive year. This ranked them in the top ten publicly-owned companies achieving increased annual consecutive dividends.^[7]

Throughout his time with the company, Richard Manoogian has achieved a net worth of approximately $750 million. He has been ranked as high as number five on the Forbes 400 list of richest manufacturers.^[9] The Manoogian family is no longer involved in the management of the company.

Masco businesses

Cabinets and related products

Masco Cabinetry headquarters, Ann Arbor Township, Michigan

North America Arrow Fastener Co., Inc., Saddle Brook, NJ KraftMaid Cabinetry, Inc. Merillat Mill's Pride Kitchens Quality Cabinets Quality Insulation Liberty Hardware

International Moores Furniture Group, Ltd. Tvilum-Scanbirk

Plumbing products

North America Alsons Corporation American Shower & Bath Corporation Aqua Glass Corporation Brass Craft World Headquarters, Novi, Michigan BrassCraft Manufacturing Company Brasstech, Inc. Delta Faucet Company Mirolin Industries Corporation Peerless Faucet Company Plumb Shop Watkins Manufacturing Company (Hot Spring Spas/Caldera Spas) Masco Canada Limited (previously Delta Faucet Canada & BrassCraft Canada)

International A & J Gummers [10] Breuer, Germany Bristan Group Limited, UK Damixa Hansgrohe AG Heritage Bathrooms[10] Hüppe

Decorative architectural products

North America

• Behr Process Corporation
• Franklin Brass Mfg. Corp. (Bath Unlimited)
• Ginger
• Liberty Hardware
• Masterchem Industries LLC
• Melard Manufacturing Corp. (Bath Unlimited)
• Vapor Technologies Inc.

Fenestrations

North America

• Milgard Windows & Doors

References

1. ^ "Masco's Manoogian retires as executive chairman". Associated Press. Forbes. June 29, 2009. http://www.forbes.com/feeds/ap/2009/06/29/ap6599913.html. Retrieved 2009-07-01. 
2. ^ Lenius, P. (2007, July). Three Manufacturers Announce Top Management Changes [Electronic version]. Supply House Times, 50(5), 20. Retrieved October 17, 2008, from ABI/INFORM Global database. (Document ID: 1314070461).
3. ^ ^{a b} Masco (2007). Corporate information. Retrieved October 17, 2008
4. ^ Fortune 500 #223., Retrieved October 17, 2008
5. ^ Google Finance. October 27, 2008. Retrieved October 27, 2008
6. ^ ^{a b} Tatge, M., Killian, A. (2002, December). A Leaky Affair. Forbes, 170(12), 89-96.
7. ^ ^{a b c d e f} Masco Historical timeline, (2007). Retrieved October 17, 2008
8. ^ Campanella, F. W. (1984, January). The Tap's Back On - Housing, Autos Return Masco to Habit of Higher Net [Electronic version]. Barron's National Business and Financial Weekly, 64(5), 44. Retrieved October 17, 2008, from ABI/INFORM Global database. (Document ID: 957493). Fortune (2008).
9. ^ Newcomb, P., Kahn, A. (1999, October). The Forbes 400: Manufacturers [Electronic version]. Forbes, 164(9), 338-340. Retrieved October 17, 2008, from ABI/INFORM Global database. (Document ID: 45158646).
10. ^ ^{a b} (a division of Bristan Group Limited)

• Schoenberger, C. R. (2004, September). Un-Building Masco; [Electronic version]. Forbes, 174(5), 142-144. Retrieved October 17, 2008, from ABI/INFORM Global database. (Document ID: 691965051).
• Wall Street Journal. October 27, 2008. Retrieved October 27, 2008
• Wotapka, D., Dunham, K. J. (2007, December 19). Masco Suffers Squeeze Once Put on Contractors; Builders Cut Spending, Press for Lower Prices; Surviving the Downturn. Wall Street Journal (Eastern Edition), p. B.6. Retrieved October 17, 2008, from ABI/INFORM Global database. (Document ID: 1400804081).

External links

• Masco Corporation (company website)

Subsidiary businesses

Alsons Corporation (website) Arrow Fastener Co., Inc. (website) Behr Process Corporation (website) Caldera Spas (website) Delta Faucet Company (website) Environments For Living:f or home owners (website) Environments For Living: for home builders (website) Hansgrohe (website) Hot Spot Spas (website) Milgard Windows & Doors (website)

Hot Spring Spas (website) Hüppe Shower Enclosures (website) Kraftmaid Cabinetry, Inc. (website) Masco Contractor Services (website) Merillat Industries (website) Mill's Pride (website) Quality Cabinets (website) Solana Spas (website) Tiger River Spas (website)