As Masco's CEO Tim Wadhams put it, last year was the "tale of two halves" for the home improvement and building products company. Sales inched up in the first part of 2010, but the end of the home-buyer tax credit and rising commodity costs hurt results in the second half of the year.
Masco, which counts Home Depot and Lowe's as its biggest customers, saw businesses tied to new home construction (i.e. installation and cabinets) take the biggest hit. The company noted in its annual report that the decline was not just about a reduction in home repairs, but also a reflection of consumers opting for less expensive products.
A charge on goodwill due to a slower-than-expected recovery in new construction, along with a charge on cost-cutting measures like plant closures and headcount reductions, further eroded its results.
NEXT: 12. First Data
