Masco Corporation free essay sample

By building a new Masco on the best of the old, it is our intent to once again achieve a record of performance that should result in the restoration of the premium common share valuation that we enjoyed for many years. We are confident that our strategies are sound, that our people throughout the organization are committed to enhancing hareholder value, and that we have the broadest offering of quality leadership products available in the markets that we serve. Key Dates: 1920: Alex Manoogian immigrates to the United States. 1929: Masco Screw Products Company is formed. 1937: Masco begins selling shares on the Detroit Stock Exchange. 1954: Masco : Masco acquires Peerless Industries, Inc. 1961 1968: Richard Manoogian becomes company president. . Masco Industries Inc. is formed. 1984 . Masco Industries becomes MascoTech Inc. 1993 1996: Masco sells furniture unit to Furnishings International, Inc. 000: Masco sells remaining interest in MascoTech to Heartland Industrial. Company History: Masco Corporation is the worlds largest faucet manufacturer as well as the leading U. We will write a custom essay sample on Masco Corporation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page S. cabinet manufacturer. The company manufactures hundreds of building specialty and home improvement products, including kitchen appliances, whirlpools and spas, bath and shower tubs and enclosures, residential and commercial locks and hardware, venting systems and ventilating products, electrical outlet boxes, and water pumps. Masco Corporations best-known product is the single-handled Delta aucet, developed and promoted in the 1950s by the companys founder, Alex Manoogian. Mascos 20 lines and 250 styles of cabinets include stock, semi-custom, and custom cabinetry for the replacement/remodeling and new construction markets. Origins as a Screw Machine Business in 1929 In 1920 Alex Manoogian, at the age of 19, immigrated to the United States from Smyrna, Turkey, fleeing political persecution and danger that threatened him as a Christian Armenian in Moslem Turkey. After holding several odd Jobs in Bridgeport, Connecticut, including brief employment in a screw machine business, Manoogian ame in 1924 to Detroit, Michigan, where he worked in a screw machine business and learned about metalworking for automobile components. In 1929, six weeks after the stock market crash, he founded Masco Screw Products Company with two partners, Harry AdJemian and Charles Saunders, who left during the first year. They began with a few thousand dollars, several used screw machines, and a truckless than $33,000 in assets. Masco was derived from the first letters of the partners last names plus co for company. The automobile industry was still young and largely untested, and Mascos initial years were difficult. Hudson Motor Car Company was the first customer, with a $7,000 contract, but Masco could not yet afford to pay salaries. Manoogian was sales manager, estimator, foreman, press operator, and repairman. The first plant was located on the fifth floor of an old building, with a furniture manufacturer on the floor below. Soon after business began, oil from the Masco machines leaked through the floor, ruining newly upholstered furniture. Manoogian was able to remain in business by arranging extended payments for the furniture damage. During the 1930s, Masco worked mainly with Chrysler and had contracts ith Ford, Graham Page, Spicer Manufacturing, and Budd Wheel. Since Masco produced parts to the specifications of these firms, the company did not distinguish itself through product design and, instead, focused on providing excellent service. In 1931 Manoogian brought his family to the United States and married Marie Tatian. In 1934 his brother Charles Joined the company, followed a few years later by another brother, George. By 1936, all sales were to the automotive industry and had increased almost fourfold since the first year, to $234,000. In 1937, Masco went public, its shares Fortunately, snow that had accumulated on the roof of the building melted and poured over the heavy machinery, reducing the fires damage. Although Masco was in business again three months later, this was the one year in its history when the company lost money. Like most U. S. metalworking companies during World War II, Masco worked exclusively for the defense industry. In 1942, its sales reached $1 million and continued to increase for two years. When the war ended in 1945, sales declined as Masco returned to manufacturing for the automotive industry, and three years later, Masco offered more stock to the public. The sale of 13,000 shares generated the capital to buy the Ford Road Plant in Dearborn, Michigan, which then became the company headquarters.