July 31 (Reuters) - Masco ( MAS ) on Thursday reinstated

its annual profit forecast, after beating analysts' estimates

for second-quarter results, on resilient demand for its home

improvement supplies and building materials, even as

macroeconomic uncertainty looms.

The annual profit forecast, which is above Wall Street

expectations, comes months after the company pulled it citing

uncertainty around trade tariffs.

WHY IT IS IMPORTANT

The Livonia, Michigan-based company saw resilient demand for

its products, including showerheads, kitchen accessories, home

decor products and paints, even as macroeconomic uncertainties

have pressured consumer spending in the U.S.

KEY QUOTE

"For the second half of this year, we remain confident in

the ability of our teams to continue to execute our strategic

priorities to drive results, even while uncertainty surrounding

near-term market conditions persists," said Masco ( MAS ) CEO Jon Nudi,

who took charge earlier this month.

CONTEXT

Masco ( MAS ) has been raising prices and cutting costs as it looks

to counter low volumes, as well as high commodity and product

costs.

The company, in May, said it had cut its exposure to China

for supplies by about 45% since 2018. But its international

operations, mostly in China and Europe, accounted for 26% of

manufacturing and 38% of warehouse and distribution operations

as of December 31, making it vulnerable to tariffs.

MARKET REACTION

Shares of the company were up nearly 5% in premarket

trading.

BY THE NUMBERS

Masco ( MAS ) now expects its full-year adjusted earnings per share

between $3.87 and $4.07, above analysts' average estimate of

$3.64, according to data compiled by LSEG.

Higher product prices and cost cuts have helped lift the

company's gross margin by 10 basis points to 37.6% for the

second quarter ended June 30.

Sales at Masco's ( MAS ) plumbing products segment, a major revenue

contributor, rose 5%, compared to a 2% rise a year ago.

The company posted adjusted earnings per share of $1.3,

compared with estimates of $1.09.

Its quarterly sales fell 2% to $2.05 billion, compared with

an estimated 4.7% decline to $1.99 billion.