This Day On The Street
Continue to site
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

TheDeal: Fortune Brands Surges on WoodCrafters Deal

Fortune Brands Home & Security is the product of a restructuring. In October 2011, its parent conglomerate, Fortune Brands Inc., spun out its home and security operations as a separate company in what was seen as an effort to ward off investor pressure.

It also in May of that year sold its golf business, Acushnet Co., for $1.2 billion to a group that included Fila Korea Ltd. and Mirae Asset Private Equity. The remaining assets became separately traded spirits company Beam Inc., also of Deerfield.

Fortune also reported first-quarter earnings Thursday. It recorded Ebitda of $84.5 million and $37.5 million in net income for the three months ended March 31, as compared with $45.4 million in Ebitda and $13 million in net income for the same period last year. Sales came in at $890 million for the first quarter of 2013 as compared to $798.8 million for the first quarter of 2012.

"We had another quarter of strong results," Klein said. "Our March 31 balance sheet ended with cash at $259 million. It remains solid. Debt remained at $326 million. Our net debt-to-Ebitda leverage is 0.2 times, and we have nothing drawn on our $650 million revolving credit facility," Wyatt added.

The company also initiated a 10 cent per share dividend on Tuesday. WoodCrafters couldn't be reached for further comment on the deal. Fortune Brands has a market capitalization of $6.1 billion. Its stock opened Friday up 6% from the market close of $37.43 per share.

Written by Thomas Zadvydas in New York
2 of 2

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FBHS $55.41 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs