diff -urp cpio-2.9.90-orig/src/extern.h cpio-2.9.90/src/extern.h
--- cpio-2.9.90-orig/src/extern.h	2008-08-25 16:42:48.000000000 +0200
+++ cpio-2.9.90/src/extern.h	2009-02-10 16:29:34.000000000 +0100
@@ -96,6 +96,7 @@ extern char input_is_special;
 extern char output_is_special;
 extern char input_is_seekable;
 extern char output_is_seekable;
+extern mode_t sys_umask;
 extern int (*xstat) ();
 extern void (*copy_function) ();
 
diff -urp cpio-2.9.90-orig/src/global.c cpio-2.9.90/src/global.c
--- cpio-2.9.90-orig/src/global.c	2007-06-28 12:54:11.000000000 +0200
+++ cpio-2.9.90/src/global.c	2009-02-10 16:34:41.000000000 +0100
@@ -187,6 +187,9 @@ bool to_stdout_option = false;
 /* The name this program was run with.  */
 char *program_name;
 
+/* Make the -d option honor the umask.  */
+mode_t sys_umask;
+
 /* A pointer to either lstat or stat, depending on whether
    dereferencing of symlinks is done for input files.  */
 int (*xstat) ();
diff -urp cpio-2.9.90-orig/src/main.c cpio-2.9.90/src/main.c
--- cpio-2.9.90-orig/src/main.c	2008-08-25 16:42:48.000000000 +0200
+++ cpio-2.9.90/src/main.c	2009-02-10 17:44:47.000000000 +0100
@@ -790,6 +790,7 @@ main (int argc, char *argv[])
   set_program_name (argv[0]);
   argp_version_setup ("cpio", program_authors);
   process_args (argc, argv);
+	sys_umask = umask(0);
   
   initialize_buffers ();
 
diff -urp cpio-2.9.90-orig/src/util.c cpio-2.9.90/src/util.c
--- cpio-2.9.90-orig/src/util.c	2008-08-25 16:42:48.000000000 +0200
+++ cpio-2.9.90/src/util.c	2009-02-10 17:46:35.000000000 +0100
@@ -605,7 +605,7 @@ create_all_directories (char *name)
 #endif
 
   dir = dir_name (name);
-  mode = 0700;
+  mode = 0777 & ~ (sys_umask);
 #ifdef HPUX_CDF
   cdf = islastparentcdf (name);
   if (cdf)
@@ -620,7 +620,7 @@ create_all_directories (char *name)
     error (2, 0, _("virtual memory exhausted"));
 
   if (dir[0] != '.' || dir[1] != '\0')
-    make_path (dir, mode, 0700, -1, -1, (char *) NULL);
+    make_path (dir, mode, 0777 & ~(sys_umask), -1, -1, (char *) NULL);
 
   free (dir);
 }