April 27, 2009 / 9:08 PM / 10 years ago

UPDATE 2-Masco posts Q1 loss, amends credit facility

* Amends 5-year revolving credit facility

* Cuts 8 pct of jobs in Q1

(Adds details about credit facility)

April 27 (Reuters) - Masco Corp (MAS.N), a building products maker, posted a first-quarter loss, hurt by lower sales of new home construction products and services, and said it amended its credit facility.

In a filing with the Securities and Exchange Commission, the company said it amended its five-year $2 billion revolving credit facility to reduce it by $750 million.

However, due to the amended terms, Masco said it now has full access to the $1.25 billion in the facility.

Masco also cut about 3,000 jobs, or 8 percent of its workforce, closed two manufacturing facilities and reduced installation branches by 6 locations in the quarter.

Masco, which derives about 40 percent of its sales from new home construction, has been hit as falling home building hurts demand for its products.

Masco posted a first-quarter net loss attributable to the company of $81.0 million, or 23 cents a share, compared with a profit of $2.0 million, or breakeven a share, a year earlier.

The latest quarter includes pre-tax restructuring charges of $24 million, the company said in a statement.

Net sales fell 26 percent to $1.82 billion.

Masco said it expects 2009 housing starts to drop about 40 percent to about 550,000 units.

In a report in April, the Commerce Department said housing starts in March fell 10.8 percent to a seasonally adjusted annual rate of 510,000 units, the second lowest on records dating back to 1959, from February’s 572,000 units.

Masco forecast a full-year loss of 15 cents to 35 cents a share. It expects sales to fall about 20 percent to 25 percent.

Shares of the company closed at $9.75 Monday on the New York Stock Exchange.

For alerts, double click [ID:nWNAB8752] (Reporting by Amulya Nagaraj in Bangalore; Editing by Anne Pallivathuckal)

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