FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Pursuant To Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended March 31, 1997. Commission File Number 1-5794
MASCO CORPORATION
(Exact name of Registrant as specified in its Charter)
Delaware 38-1794485
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
21001 Van Born Road, Taylor, Michigan 48180
(Address of principal executive offices) (Zip Code)
(313) 274-7400
(Telephone Number)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Shares Outstanding at
Class May 1, 1997
Common stock, par value $1 per share 161,270,000
<PAGE>
MASCO CORPORATION
INDEX
Page No.
Part I. Financial Information
Item 1. Financial Statements:
Condensed Consolidated Balance Sheet -
March 31, 1997 and December 31, 1996 1
Condensed Consolidated Statement of
Income for the Three Months Ended
March 31, 1997 and 1996 2
Condensed Consolidated Statement of
Cash Flows for the Three Months Ended
March 31, 1997 and 1996 3
Notes to Condensed Consolidated
Financial Statements 4-7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8-10
Unaudited Information Regarding Equity
Investments for the Three Months
Ended March 31, 1997 and 1996 11
Part II. Other Information and Signature 12
<PAGE>
MASCO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
March 31, 1997 and December 31, 1996
(Dollars in thousands)
March 31, December 31,
ASSETS 1997 1996
Current assets:
Cash and cash investments $ 327,590 $ 473,730
Accounts and notes receivable, net 518,420 466,900
Prepaid expenses and other 91,370 77,200
Inventories:
Raw material 181,360 185,500
Finished goods 146,930 135,190
Work in process 96,410 91,250
424,700 411,940
Total current assets 1,362,080 1,429,770
Receivable from MascoTech, Inc. 151,380 151,380
Equity investment in MascoTech, Inc. 16,550 10,150
Equity investments in other affiliates 65,560 57,680
Securities of Furnishings International Inc. 365,520 356,340
Property and equipment, net 939,060 940,590
Excess of cost over acquired net assets 472,100 457,350
Other noncurrent assets 311,880 298,390
Total assets $3,684,130 $3,701,650
LIABILITIES
Current liabilities:
Notes payable $ 6,600 $ 7,590
Accounts payable 128,860 149,500
Accrued liabilities 344,230 361,350
Total current liabilities 479,690 518,440
Long-term debt 1,216,170 1,236,320
Deferred income taxes and other 101,680 107,080
Total liabilities 1,797,540 1,861,840
SHAREHOLDERS' EQUITY
Common stock, par value $1 per share
Authorized shares: 400,000,000 161,240 160,870
Preferred stock, par value $1 per share
Authorized shares: 1,000,000 --- ---
Paid-in capital 150,140 140,010
Retained earnings 1,586,850 1,536,410
Cumulative translation adjustments (11,640) 2,520
Total shareholders' equity 1,886,590 1,839,810
Total liabilities and
shareholders' equity $3,684,130 $3,701,650
See notes to condensed consolidated financial statements.
1
<PAGE>
MASCO CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
For the Three Months Ended March 31, 1997 and 1996
(Amounts in thousands except per share data)
Three Months Ended March 31
1997 1996
Net sales $854,000 $764,000
Cost of sales 539,500 480,330
Gross profit 314,500 283,670
Selling, general and administrative
expenses 181,000 169,530
Amortization of excess of cost over
acquired net assets 3,700 2,610
Operating profit 129,800 111,530
Other income (expense), net:
Interest expense (18,500) (17,500)
Re: MascoTech, Inc.
Equity earnings 6,000 8,870
Interest income 2,500 ---
Other, net 19,400 3,900
9,400 (4,730)
Income before income taxes 139,200 106,800
Income taxes 55,700 44,800
Net income $ 83,500 $ 62,000
Per share data:
Net income $.52 $.39
Cash dividends declared and paid $.20 $.19
Average shares outstanding 161,000 160,400
See notes to condensed consolidated financial statements.
2
<PAGE>
MASCO CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the Three Months Ended March 31, 1997 and 1996
(Dollars in thousands)
Three Months Ended
March 31
1997 1996
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES:
Cash provided by continuing operations $ 87,420 $ 80,230
(Increase) in receivables (57,660) (49,840)
Decrease in inventories 2,450 2,980
Decrease in prepaid expenses 8,450 6,090
(Decrease) in current liabilities (43,630) (18,500)
Total cash from (for) operating activities
of continuing operations (2,970) 20,960
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Acquisition of companies (46,420) ---
Capital expenditures (28,200) (25,200)
0ther, net (14,360) (7,230)
Total cash (for) investing activities
of continuing operations (88,980) (32,430)
Discontinued operations, net --- 17,590
Total cash (for) investing activities (88,980) (14,840)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES:
Increase in debt 450 53,610
Payment of debt (22,570) (44,050)
Cash dividends paid (32,070) (30,460)
Total cash (for) financing activities
of continuing operations (54,190) (20,900)
CASH AND CASH INVESTMENTS:
Decrease for the quarter (146,140) (14,780)
At January 1 473,730 60,470
At March 31 $327,590 $ 45,690
See notes to condensed consolidated financial statements.
3
<PAGE>
MASCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
A. In the opinion of the Company, the accompanying unaudited condensed
consolidated financial statements contain all adjustments, of a normal
recurring nature, necessary to present fairly its financial position as at
March 31, 1997 and the results of operations and changes in cash flows for
the three months ended March 31, 1997 and 1996. The condensed
consolidated balance sheet at December 31, 1996 was derived from audited
financial statements. Earnings per share are calculated based on the
weighted average common shares outstanding. Certain amounts for the prior
year period have been reclassified to conform to the current year
presentation.
B. During the first quarter of 1997, the Company acquired Franklin Brass
Manufacturing Company, a leading manufacturer of bath accessories and bath
safety products and LaGard Inc., a leading manufacturer of electronic
locks. The aggregate purchase price was approximately $55 million and
included .2 million shares of Company common stock, with the balance in
cash. The acquisitions were accounted for as purchase transactions. These
companies had combined annual net sales in 1996 of approximately $60
million.
C. The Company expects that Statement of Financial Accounting Standards No.
128 ("SFAS 128"), "Earnings Per Share," will not have a material impact on
earnings per share when adopted at December 31, 1997. Although earlier
application of SFAS 128 is not permitted, disclosure of the pro forma
earnings per share amounts computed in accordance with SFAS 128 is
permitted. Accordingly, pro forma basic and diluted earnings per share
under SFAS 128 were $.53 and $.51 respectively, for the three months
ended March 31, 1997.
D. Other income (expense), net consists of the following, in thousands:
Three Months Ended
March 31
1997 1996
Interest expense $(18,500) $(17,500)
Re: MascoTech, Inc.:
Equity earnings 6,000 8,870
Interest income 2,500 ---
Equity earnings, other 1,800 2,020
Income from cash and cash investments 4,300 640
Other interest income 9,900 1,140
Other, net 3,400 100
$ 9,400 $ (4,730)
Equity earnings from MascoTech for the first quarter of 1997 reflect the
Company's fourth quarter 1996 reduction in common equity ownership of MascoTech
from 45 percent to 21 percent. Equity earnings from MascoTech for the first
quarter of 1997 include an aggregate $2.3 million of unusual income related to
an equity transaction of a MascoTech affiliate and gains from MascoTech's
marketable securities portfolio. Included in 1996 equity earnings from MascoTech
was approximately $5.0 million of unusual income related to a MascoTech
accounting change.
During the first quarter of 1997, the Company recognized interest income
at 6.625% on the $151.4 million receivable balance due from MascoTech.
Other interest income for the first quarter of 1997 includes $9.2 million
of interest income from the 12% pay-in-kind junior debt securities
(approximately $300 million) of Furnishings International Inc.
4
<PAGE>
MASCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note D - Concluded:
Other, net for the first quarter of 1997 includes net gains aggregating
$3.5 million from the sale of certain assets.
E. The following presents the combined unaudited financial statements of the
Company, MascoTech, Inc. and TriMas Corporation as one entity, with Masco
Corporation as the parent company. Intercompany transactions have been
eliminated. Amounts, except per share data, are in thousands.
Combined Balance Sheet
March 31, December 31,
Assets 1997 1996
Current assets:
Cash and cash investments $ 433,590 $ 599,020
Marketable securities 49,530 37,760
Accounts and notes receivable, net 766,650 674,530
Prepaid expenses and other 110,260 81,320
Deferred income taxes 38,850 53,670
Net current assets of businesses held
for disposition --- 85,980
Inventories:
Raw material 237,580 238,250
Finished goods 222,120 209,590
Work in process 133,130 125,950
592,830 573,790
Total current assets 1,991,710 2,106,070
Equity investments in affiliates 260,340 221,380
Securities of Furnishings International Inc. 365,520 356,340
Property and equipment, net 1,521,440 1,523,590
Excess of cost over acquired net assets 667,920 660,690
Net non-current assets of businesses
held for disposition --- 22,850
0ther assets 434,910 415,280
Total assets $5,241,840 $5,306,200
Liabilities and Shareholders' Equity
Current liabilities:
Notes payable $ 9,620 $ 16,620
Accounts payable 228,610 241,420
Accrued liabilities 490,590 501,800
Total current liabilities 728,820 759,840
Long-term debt 1,830,280 2,020,400
Deferred income taxes and other 301,100 300,170
Other interests in combined affiliates 495,050 385,980
Equity of shareholders of Masco Corporation 1,886,590 1,839,810
Total liabilities and shareholders' equity $5,241,840 $5,306,200
5
<PAGE>
MASCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note E - Continued:
Three Months Ended
March 31
Combined Statement of Income 1997 1996
Net sales $1,245,300 $1,279,790
Costs and expenses, net:
Cost of sales 821,960 887,220
Selling, general and administrative expenses 233,520 232,660
Charge on disposition of businesses, net --- 2,000
Other income (expense), net:
Interest expense (27,540) (28,120)
Other income, net 44,870 9,060
17,330 (19,060)
1,038,150 1,140,940
Income before income taxes, other
interests and cumulative effect of
an accounting change 207,150 138,850
Income taxes 87,700 58,670
Other interests in combined affiliates 35,950 21,260
Income before cumulative effect of
an accounting change 83,500 58,920
Cumulative effect of an accounting change, net --- 3,080
Net income $ 83,500 $ 62,000
Earnings per share:
Income before cumulative effect of
an accounting change $.52 $.37
Cumulative effect of an accounting change, net -- .02
Earnings per share $.52 $.39
Cash dividends declared and paid per share $.20 $.19
Average shares outstanding 161,000 160,400
6
<PAGE>
MASCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (concluded)
Note E - Concluded:
Three Months Ended
March 31
Combined Statement of Cash Flows 1997 1996
Cash Flows From (For) Operating Activities:
Cash provided by continuing operations $ 140,030 $ 102,850
(Increase) in receivables (83,240) (78,050)
(Increase) in inventories (3,830) (5,370)
Decrease in prepaid expenses 8,450 9,130
(Decrease) in current liabilities (26,220) (11,640)
Total cash from operating activities 35,190 16,920
Cash Flows From (For) Investing Activities:
Capital expenditures (43,270) (43,050)
Proceeds from sale of subsidiaries 76,560 129,180
Acquisitions, net of cash acquired (57,520) (4,470)
Discontinued operations, net --- 17,590
Net assets held for disposition --- (760)
Other, net (50,780) 17,870
Total cash from (for) investing activities (75,010) 116,360
Cash Flows From (For) Financing Activities:
Increase in debt 17,230 54,330
Payment of debt (104,750) (190,040)
Cash dividends paid (38,090) (35,680)
Total cash (for) financing activities (125,610) (171,390)
Cash and Cash Investments:
Decrease for the period (165,430) (38,110)
At January 1 599,020 169,240
At March 31 $ 433,590 $ 131,130
7
<PAGE>
MASCO CORPORATION
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FIRST QUARTER 1997 VERSUS FIRST QUARTER 1996
SALES AND OPERATIONS
Net sales for the three months ended March 31, 1997 increased 12 percent
to $854 million from $764 million in the comparable period in 1996; excluding
recent acquisitions, first quarter 1997 net sales increased six percent. The
increase in net sales is principally due to increases in unit sales volume of
faucets, cabinets and other kitchen and bath products.
For the first quarter of 1997, sales of Kitchen and Bath Products
increased 14 percent to $679 million from $596 million in the first quarter of
1996; excluding recent acquisitions, first quarter 1997 net sales for this
segment increased eight percent. Sales of Other Specialty Products for the
first quarter of 1997 were $175 million, representing a four percent increase
over net sales of $168 million for the first quarter of 1996; excluding recent
acquisitions, net sales for this segment decreased 1 percent for the first
quarter of 1997 due principally to the negative effect of currency translation
on sales from European operations included in this segment.
Net sales from North American operations for the first quarter of 1997
increased eight percent to $713 million from $658 million for the comparable
period in the prior year; excluding recent acquisitions, first quarter 1997 net
sales from these operations increased seven percent. Net sales from
European-based operations for the first quarter of 1997 increased 33 percent to
$141 million from $106 million for the first quarter of 1996; excluding recent
acquisitions, first quarter 1997 net sales from these operations decreased 1
percent. A stronger U.S. dollar, principally against the German Deutsche Mark,
had a negative effect on the translation of European sales in the first quarter
of 1997 as compared with the first quarter of 1996, lowering European net sales
in the 1997 first quarter by approximately 9 percent.
Cost of sales as a percentage of sales increased slightly to 63.2 percent
for the first quarter of 1997 from 62.9 percent for the comparable period in
1996. Excluding amortization of excess of cost over acquired net assets ($3.7
million and $2.6 million for the first quarters of 1997 and 1996, respectively),
selling, general and administrative expenses as a percentage of sales for the
first quarter of 1997 decreased to 21.2 percent from 22.2 percent in the
comparable period in 1996. The decrease in the selling, general and
administrative expenses percentage in 1997 results largely from the Company's
cost-control initiatives and the leveraging of fixed and semi-fixed costs over a
higher sales base.
The Company's operating profit margins improved in the first quarter of
1997 as compared with the first quarter of 1996 principally due to the reduction
in selling, general and administrative expenses as a percentage of sales.
8
<PAGE>
MASCO CORPORATION
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FIRST QUARTER 1997 VERSUS FIRST QUARTER 1996 (continued)
OTHER INCOME (EXPENSE), NET
Included in other income (expense), net for the three months ended March
31, 1997 are equity earnings from MascoTech, Inc. of $6.0 million as compared
with equity earnings from MascoTech of $8.9 million in the comparable period of
1996. Equity earnings from MascoTech for the first quarter of 1997 reflect the
Company's fourth quarter 1996 reduction in common equity ownership of MascoTech
from 45 percent to 21 percent. Excluding the Company's equity share of
MascoTech's unusual income items in the first quarters of 1997 and 1996, equity
earnings from MascoTech for the first quarters of 1997 and 1996 were $3.7
million and $3.9 million, respectively. Equity earnings from MascoTech for the
first quarter of 1997 include an aggregate $2.3 million of unusual income
related to an equity transaction of a MascoTech affiliate and gains from
MascoTech's marketable securities portfolio. Included in first quarter 1996
equity earnings from MascoTech was approximately $5.0 million of unusual income
related to a MascoTech accounting change.
Included in other income (expense), net for the three months ended March
31, 1997 is $2.5 million of interest income from the $151.4 million receivable
balance due from MascoTech.
Included in other income (expense), net for the three months ended March
31, 1997 is $9.2 million of interest income from approximately $300 million of
pay-in-kind junior debt securities of Furnishings International Inc., and net
gains aggregating $3.5 million from the sale of certain assets.
Also included in other income (expense), net for the first quarter of 1997
is income from cash and cash investments of $4.3 million as compared with $.6
million for the first quarter of 1996; the increase in income from cash and cash
investments resulted from a higher average cash and cash investments balance
during the first quarter of 1997 as compared with the first quarter of 1996.
NET INCOME AND EARNINGS PER SHARE
Net income for the first quarter of 1997 increased 35.0 percent to $83.5
million from $62.0 million in the comparable period of 1996, and earnings per
share increased 33.0 percent to $.52 from $.39, principally for the reasons
discussed above. The Company's effective tax rate was 40.0 percent for the
first quarter of 1997 as compared with 41.9 percent for the comparable period in
1996. The Company estimates that its effective tax rate for 1997 will
approximate 40.0 percent; such estimate includes the anticipation of lower tax
related to foreign earnings in 1997 and the anticipated utilization of a portion
of capital loss carryforward benefits, which resulted from the sale of the
Company's home furnishings businesses.
OTHER FINANCIAL INFORMATION
At March 31, 1997 current assets were 2.8 times current liabilities.
For the three months ended March 31, 1997, cash of $3.0 million was used
for operating activities. Cash used for investing activities was $88.9 million,
including $46.4 million for the acquisition of companies, $28.2 million for
capital expenditures and $14.3 million for other cash outflows. Cash used for
financing activities was $54.2 million, including $22.1 million for the net
payment of debt and $32.1 million for cash dividends paid. The aggregate of the
preceding items represents a net cash outflow of $146.1 million.
9
<PAGE>
MASCO CORPORATION
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FIRST QUARTER 1997 VERSUS FIRST QUARTER 1996 (concluded)
OTHER FINANCIAL INFORMATION (Continued)
First quarter 1997 cash from operations was affected by an expected and
recurring first quarter increase in accounts receivable. As the annual increase
in accounts receivable is historically experienced in the first quarter, cash
from operations in the remaining three quarters of 1997 are not expected to be
affected by significant increases in accounts receivable.
The Company has on file with the Securities and Exchange Commission, an
unallocated shelf registration pursuant to which the Company is able to issue up
to a combined $759 million of debt and equity securities.
The Company believes that its present cash balance, its cash flows from
operations and, to the extent necessary, future financial market activities and
bank borrowings, are sufficient to fund its working capital and other investment
needs.
The Company expects that Statement of Financial Accounting Standards No.
128 ("SFAS 128"), "Earnings Per Share," will not have a material impact on
earnings per share when adopted at December 31, 1997.
10
<PAGE>
UNAUDITED INFORMATION REGARDING EQUITY INVESTMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
Equity investments in affiliates consist primarily of the following
approximate common stock and partnership interests at March 31:
1997 1996
MascoTech, Inc. 21% 45%
Hans Grohe, a German partnership 27% 27%
TriMas Corporation 4% 5%
The Company has an approximate 17 percent voting interest in MascoTech at
March 31, 1997, after including the voting interests of the preferred
stockholders of MascoTech.
The following presents condensed financial data of MascoTech, Inc. Amounts
are in thousands.
Three Months Ended March 31
1997 1996
Sales - Net $233,440 $373,920
Gross Profit $ 56,300 $ 61,440
Net Income (After Preferred
Stock Dividends) $ 29,420 $ 19,200
11
<PAGE>
PART II. OTHER INFORMATION
MASCO CORPORATION
Items 1, 3, 4 & 5 are not applicable.
Item 2. Changes in Securities
(a) Not applicable.
(b) Not applicable.
(c) During the first quarter of 1997 the Company issued 240,100
shares of common stock in connection with the acquisition of
LaGard Inc., a leading manufacturer of electronic locks. The
shares were issued to the shareholders of LaGard Inc. in a
transaction that did not involve a public offering and the
issuance was therefore exempt under Section 4(2) of the
Securities Act.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
11 - Computation of Earnings Per Share
12 - Computation of Ratio of Earnings to Fixed Charges
27 - Financial Data Schedule
(b) Reports on Form 8-K:
None
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MASCO CORPORATION
(Registrant)
Date: May 14, 1997 By: /s/ Richard G. Mosteller
Richard G. Mosteller
Senior Vice-President - Finance
(Chief Financial Officer
and Authorized Signatory)
12
<PAGE>
MASCO CORPORATION
EXHIBIT INDEX
Exhibit
Exhibit 11 Computation of Earnings Per Share
Exhibit 12 Computation of Ratio of Earnings to Fixed Charges
Exhibit 27 Financial Data Schedule
Exhibit 11
MASCO CORPORATION AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
Primary and Fully Diluted Earnings Per Share
For the Three Months Ended March 31, 1997 and 1996
(Amounts in thousands except per share amounts)
Three Months Ended
March 31
1997 1996
Shares for computation of primary and fully diluted
earnings per share:
Weighted average number of shares outstanding 161,000 160,400
Common stock equivalents:
Shares issuable assuming conversion of debentures 4,200 4,200
Stock options 1,100 800
Total shares for primary and fully diluted
earnings per share computation 166,300 165,400
Net income, adjusted to basis of earnings per share:
Net income $83,500 $62,000
Add back debenture interest, net 1,500 1,500
$85,000 $63,500
Primary and fully diluted earnings per share $.51 $.38
Earnings per share as reported $.52 $.39
This calculation is submitted in accordance with Regulation S-K Item
601(b)(11), although not required by APB Opinion No. 15, inasmuch as dilution
for either period was less than three percent.
Exhibit 12
MASCO CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
<TABLE>
<CAPTION>
(Thousands of Dollars)
Three
Months
Ended
March 31, Year Ended December 31,
1997 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
Earnings Before Income Taxes
and Fixed Charges:
Income from continuing
operations before income
taxes $139,200 $502,700 $351,790 $292,830 $349,190 $296,020
Deduct/add equity in
undistributed (earnings)/
loss of equity affiliates (6,530) (12,310) (17,770) 106,200 (13,750) (13,210)
Add interest on indebtedness,
net 18,590 74,790 73,400 60,360 62,860 57,190
Add amortization of debt
expense 320 1,400 1,930 2,220 2,650 2,710
Add estimated interest factor
for rentals 1,620 6,150 4,970 4,220 3,190 3,290
Earnings from continuing
operations before income
taxes and fixed charges $153,200 $572,730 $414,320 $465,830 $404,140 $346,000
Fixed Charges:
Interest on indebtedness
regarding continuing
operations $ 19,170 $ 77,250 $ 76,460 $ 63,220 $ 63,600 $ 69,890
Amortization of debt expense 320 1,400 1,930 2,220 2,650 2,710
Estimated interest factor
for rentals 1,620 6,150 4,970 4,220 3,190 3,290
$ 21,110 $ 84,800 $ 83,360 $ 69,660 $ 69,440 $ 75,890
Ratio of earnings to fixed
charges 7.3 6.8 5.0 6.7 5.8 4.6
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MASCO
CORPORATION'S MARCH 31, 1997 FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-1-1997
<PERIOD-END> MAR-31-1997
<CASH> 327,590
<SECURITIES> 0
<RECEIVABLES> 518,420<F1>
<ALLOWANCES> 0
<INVENTORY> 424,700
<CURRENT-ASSETS> 1,362,080
<PP&E> 939,060<F1>
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,684,130
<CURRENT-LIABILITIES> 479,690
<BONDS> 1,216,170
0
0
<COMMON> 161,240
<OTHER-SE> 1,725,350
<TOTAL-LIABILITY-AND-EQUITY> 3,684,130
<SALES> 854,000
<TOTAL-REVENUES> 854,000
<CGS> 539,500
<TOTAL-COSTS> 539,500
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 18,500
<INCOME-PRETAX> 139,200
<INCOME-TAX> 55,700
<INCOME-CONTINUING> 83,500
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 83,500
<EPS-PRIMARY> .52
<EPS-DILUTED> .51
<FN>
<F1>Receivables and property and equipment are presented net of allowances for
doubtful accounts and accumulated depreciation and amortization, respectively.
</FN>
</TABLE>
