Lastly, branded home improvement and building products manufacturer Masco Corporation (MAS, Financial) declined following mixed earnings results and guidance below street expectations. Although the top-line came in ahead of expectations, the bottom-line missed as supply chain challenges, inflation headwinds and a spike in freight and logistics costs weighed on margins. MAS has implemented incremental price increases with the goal of neutralizing additional cost pressure. Management also continues to utilize its strong cash position to deploy capital to shareholders through the use of dividends and share repurchases. Near term, we believe MAS’ leading portfolio of branded, lower ticket, repair and remodel-oriented products that serve the do -it yourself and professional markets is well positioned to capitalize on favorable housing fundamentals. Going forward, we expect the company to enhance its operating profitability, as it continues to benefit from scale, technological know-how and the positioning of its supply chain.
From John Rogers (Trades, Portfolio)' Ariel Fund first-quarter 2022 commentary.
