(RTTNews) - Monday, Masco Corp. (MAS: News ), a home improvement and building products manufacturing company, reported a decline in net profit for the third quarter, reflecting higher losses from discontinued operations. Sales fell 17%, impacted by lower sales of new home construction products and services and a decline in consumer spending. However, the company raised its outlook for 2009.

The company, headquartered in Taylor, Michigan, reported net profit attributable to Masco Corporation of $28 million or $0.08 per share, compared with $33 million or $0.09 per share in the year-ago period. Net profit for the quarter totaled $40 million, down from $44 million in the year-ago quarter.

However, income from continuing operations attributable to Masco increased to $51 million from $35 million in the year-ago period. Earnings per share from continuing operations attributable to the company was $0.14 per share, compared with $0.09 per share in the prior year period.

On average, fourteen analysts polled by Thomson Reuters estimated earnings of $0.09 per share. Analysts' estimates typically exclude special items.

The company said its recent quarter results included costs and charges of $21 million pre-tax, or $0.04 per share, after tax, related to business consolidations, plant closures, headcount reductions, system implementations and other initiatives.

Net sales from continuing operations declined by 17% to $2.09 billion from $2.51 billion in the prior-year period. Twelve Wall Street analysts estimated revenues of $2.03 billion. Region-wise, North American sales declined 17% and International sales declined 13%.
The company said its results for the quarter were hit by lower sales volume of new home construction products and services, and a decline in consumer spending for home improvement products in both North American and International markets.

However, it added that negative market conditions were partially offset by increased sales volume of paints and stains, the improved relationship between selling prices and commodity costs and benefits associated with business rationalizations and other cost savings initiatives.

Selling, general and administrative expenses declined to $432 million from $454 million year-ago, while other expenses declined to $49 million from $56 million year-ago.

Year-to-date, the company's net income attributable to Masco Corporation dipped to $2 million or $0.00 per share from last year's $117 million or $0.31 per share. Year-to-date, net sales declined to $5.92 billion from $7.56 billion a year ago.

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