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Fortune Brands Home & Security Continues Sales And Profit Growth In Second Quarter, Reaffirms Annual Outlook

Stocks in this article: FBHS

Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, today announced results for the second quarter of 2012.

Net sales were $935 million, an increase of 5 percent over the second quarter of 2011. Diluted earnings per share were $0.29 vs. $0.28 in the prior year quarter, and diluted EPS before charges/gains was $0.29 vs. $0.24 the prior year, a 21 percent increase.

Operating income was $72.3 million, an increase of 11 percent over the prior-year quarter. Operating income before charges/gains was $72.7 million, up 18 percent year-over-year.

“We had a very good second quarter. We met our expectations for sales growth and exceeded them for profit growth,” said Chris Klein, chief executive officer, Fortune Brands Home & Security, Inc. “We achieved this strong performance as new housing construction showed strong double-digit growth and spending for home repairs and remodeling was uneven during the quarter and somewhat weaker than our expectations.”

For each segment in the second quarter 2012, compared to the prior-year quarter:

  • Plumbing & Accessories net sales were up 12 percent, with continuing gains in the U.S. wholesale business on strength from new construction market growth, as well as success in international markets, especially China.
  • Security & Storage net sales were up 2 percent, with security product sales growing 7 percent on broader placement of products at key retailers and increased global sales of padlocks and safety products.
  • Advanced Material Windows & Door Systems net sales were up 7 percent, with strength in new construction contributing to growth in both the window and door product lines.
  • Kitchen & Bath Cabinetry net sales were up approximately 1 percent, with operating profit up 22 percent to $18 million.

“Our Plumbing and Security & Storage segments continue to see success from their market expansion activities and product innovation, while our Windows & Door segment saw strength from new business wins and improvement in the new construction market. Our Cabinets segment performed well in the face of continuing consumer hesitancy for big-ticket purchases, with our multi-channel strength enabling us to follow a disciplined strategy to drive sales in more profitable segments of the market,” Klein said.

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