This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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

“We are very pleased with our performance this quarter. Our strategies and tight execution are producing profitable revenue growth, and we are in position to drive the business opportunities we believe will result in continued growth as the market continues to firm. We believe our solid capital structure, strong brands, exciting product innovation and operational excellence position us for continued success,” Klein said.

“We improved upon our sound balance sheet,” said Lee Wyatt, senior vice president and chief financial officer. “As of June 30, 2012, cash was approximately $147 million, and debt was $361 million with nothing outstanding on our $650 million revolver facility. Our net debt-to-EBITDA ratio is down to 0.7 times.”

Company Reaffirms Sales and EPS Outlook for 2012

For the full year, the Company’s assumption for the growth rate of the market for its U.S. home products remains mid-single digits, as new construction showed better-than-expected strength in the second quarter while repair & remodel business was softer than expected. The Company is reaffirming the range of its net sales outlook for 2012, as it continues to expect its full-year 2012 net sales to increase at a high-single-digit rate.

“We continue to expect full-year sales to grow high single digits, but based on continuing unevenness in repair & remodel and due to our disciplined approach to pursuing sales growth that is also profitable, we believe our results will be in the lower end of that range,” Klein said.

In addition, the Company is reaffirming its full-year 2012 outlook for diluted EPS before charges/gains of $0.77 - $0.87. This targeted range compares to 2011 diluted EPS before charges/gains of $0.60. The Company’s EPS expectations reflect the benefit of its expected higher net sales and related operating leverage, partially offset by strategic investments in the business.

“We remain confident in our ability to outperform the market no matter the pace of the recovery, due to our industry leadership positions and our strategy to selectively pursue and secure profitable business,” Klein said.

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs