With each new fiscal year, companies take the time to look back over past business, in order to formulate new strategies. With those reflections comes a new strategic direction for building products manufacturer Masco—including a search for what company officials are calling “alternative strategies” for its door and window businesses.

“Over the past five years, we have been executing our strategy to drive the full potential of our core businesses, leverage opportunities across our organization, and actively manage our portfolio to drive shareholder value,” says Keith Allman, president and CEO of Masco.

Tacoma, Wash.-based Milgard Windows and Doors is one of two businesses owned by Masco that’s slated to be affected. Masco UK Window Group will also be impacted.

“Our cabinetry and window businesses are leaders in their respective markets and are well positioned to continue their growth,” Allman suggests. “However, we believe we can potentially drive greater shareholder value by exploring strategic alternatives for these businesses.”

Sue Sabo, director of communications for Masco, confirms with DWM that the doors side of Milgard will also be affected by any new strategies that come forward. Sabo also says that it’s possible Milgard could be sold off.

“An exploration of strategic alternatives includes a number of possibilities, including divesture,” Sabo says. “While Milgard is a leader in its respective markets, has a strong team, manufactures quality products and is well positioned to continue its growth, Masco is exploring if this business aligns with our long-term strategy, or if Masco can potentially drive greater shareholder value by further refining its portfolio.”

For 2018, Masco reported net sales of its windows and other specialty products segment of $755 million, operating profit of $34 million and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $62 million (excluding $5 million of rationalization charges).

According to Yahoo Finance, Masco exceeded industry projections for the past year with North American sales growing by 14 percent. However, the company’s international market has not faired as well, with reports of staying fairly stagnant year-over-year. Masco’s window segment has been reported as down 1.1 percent year-over-year primarily due to a lack of international sales offset partially by growth in North America.

Allman said that Masco will explore new strategies and expects the review to be done by the end of June 2019. Though, any changes, he says, will likely not be seen until the end of the year or beginning of 2020.

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