May 1, 2007 - Masco Buys Construction Companies
Erickson provides prefabricated wall panels and millwork. Masco said the Erickson acquisition will allow it to manage the entire framing process for the builder. Guy Evans installs millwork, doors, windows and bath hardware for residential builders and commercial contractors
Both companies will join Masco Services Group, a provider of installed products for North American homebuilders. Guy Evans will become part of group subsidiary, Masco Contractor Services, which distributes and installs 20 different product categories to homebuilders across the country.
Financial terms were not disclosed, but a Masco press release says the company expected combined annual sales of $200 million this year.
In other news, Masco reported yesterday a 30 percent drop in first-quarter profits of $143 million down from $204 million a year earlier. Sales fell 9 percent to $2.88 billion.
The company also cut its 2007 earnings forecast. Citing higher commodity costs and lower residential construction, the company now expects 2007 earnings of $1.50 to $1.70 a share. The previous estimate ranged up to $1.80 per share.