Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, today announced results for the first quarter of 2012.
Net sales were $799 million, an increase of 12 percent over the first quarter of 2011. Diluted earnings per share were $0.08 vs. a loss of $0.07 in the prior year quarter, and diluted EPS before charges/gains was $0.08 vs. $0.00 the prior year.
Operating income was $21.3 million, an increase of $13.5 million over the prior-year quarter. Operating income before charges/gains was also $20.9 million, up $17.6 million year-over-year.
“We are pleased with our performance in the first quarter. We grew sales and profit more than expected, and we believe we continued to gain share while benefiting from a stronger-than-anticipated market,” said Chris Klein, chief executive officer, Fortune Brands Home & Security, Inc. “Spending for home repairs and remodeling increased, although consumers are still cautious about big-ticket purchases, like cabinets. New housing construction was also stronger than expected in the quarter, with single-family and multi-family starts on the rise. While milder-than-average weather likely played a part in this home products market performance, we experienced strength across-the-board, even in geographies and product segments where weather was not a factor.”
For each segment in the first quarter 2012, compared to the prior-year quarter:
- Plumbing & Accessories net sales were up 20 percent, with strength in the U.S. wholesale business and international markets, especially China.
- Security & Storage net sales were up 18 percent, on strength in retail padlocks as well as safety and tool storage products.
- Advanced Material Windows & Door Systems net sales were up 11 percent, on strength from new business and new construction market growth.
- Kitchen & Bath Cabinetry net sales were up 4 percent, driven by dealer channel strength and sales to builders.
“Our Plumbing, Security & Storage and Windows & Door segments all had robust double-digit sales increases as our innovative products continued to be well received and we maintained the momentum in our market expansion activities. Our Cabinets segment met our expectations, even as cabinet industry growth predictably continued to lag the overall market for our products,” Klein said.