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October 02, 2007

HVAC & appliances co's pay most for warranty claims

Quarterly Warranty Claims Paid   

Fig11According to data published by Eric Arnum and Warranty Week HVAC and appliance companies paid out the most for claims as a percentage of revenue.  As expected, but for the first time in many years home builders are paying the highest percentage of claims or 1.3% last quarter and this can be explained by their declining revenues.  Warranty claims for home builders typically average around 0.9% in normal market conditions.

MASCO Corp. Quarterly Warranty Claims & Accruals

Masco1 It is interesting to note that Masco, maker of faucets, cabinets, locks, windows has defied this trend.  Even though they have experienced a downward trend in sales their warranty claims as a percentage of revenue have also declined.

Since companies use include different components in their warranty claim numbers it is not useful to compare the percentages from one company to another. However it is can be useful to monitor trends.  So how is it that Masco has been able to reduce their claims in a down market?

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