“Our Cabinet sales grew nicely in the quarter, and our continued discipline on promotions coupled with our improving supply chain efficiencies resulted in a sharp year-over-year increase in operating income before charges/gains. Our Plumbing segment continued to capitalize on strength in the new construction market, thanks to our market-leading share with builders and wholesalers. Windows & Door segment sales benefited from the broadening of our distribution in doors and our strength in new construction, and profits improved as expected. Broader product placement, innovation and continued demand for global safety solutions led to gains in the Security & Storage segment,” Klein said.
“This was another successful quarter for us. Our results reflect the growth in new construction, thanks to the work we’ve done over the last several years to position ourselves for a recovering market. Our teams are executing well and delivering results that are meeting or exceeding expectations we laid out for ourselves one year ago when we spun off from Fortune Brands. It has been an exciting first year as an independent company, and we believe our solid capital structure, strong brands, compelling product innovation and operational excellence will enable us to perform well in the future,” Klein said.
“We improved upon our sound balance sheet,” said Lee Wyatt, senior vice president and chief financial officer. “As of September 30, 2012, cash was $216 million, and debt was down to $345 million with nothing outstanding on our $650 million revolving credit facility. Our net debt-to-EBITDA before charges/gains ratio is 0.4 times.”
Company Raises EPS Outlook for 2012For 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 continued to show strength in the third quarter. At the same time, there was a more modest increase in repair & remodel business. The Company continues to expect its full-year 2012 net sales to increase at a high-single-digit rate.