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Fortune Brands Home & Security Reports Strong Q3 Sales And EPS, Increases Annual Outlook

Stocks in this article: FBHS

Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, today announced third quarter 2013 results and raised its annual outlook for sales and earnings per share.

“We continue to leverage our structural competitive advantages and the market recovery to deliver profitable growth,” said Chris Klein, chief executive officer, Fortune Brands Home & Security. “We are again increasing our 2013 annual outlook based on our strong performance.”

Third Quarter 2013

For the third quarter of 2013, net sales were $1.125 billion, an increase of 24 percent over the third quarter of 2012. Diluted earnings per share were $0.37, compared to $0.24 in the prior year quarter. Diluted EPS before charges/gains were $0.46, compared to $0.29 the prior year. Operating income was $98.6 million, compared to $60.6 million in the prior year quarter. Operating income before charges/gains was $121.6 million, compared to $72.9 million the prior year.

“Sales were up double digits vs. last year for each of our segments in the third quarter, with our home product segments growing a combined 26 percent. Importantly, total operating income before charges/gains increased 67 percent,” Klein said.

For each segment in the third quarter 2013, compared to the prior-year quarter:

  • Kitchen & Bath Cabinetry net sales were up 36 percent. Operating income before charges/gains increased $23.7 million over last year to $36.8 million, with GAAP operating income increasing $12.6 million. The sales increase was led by growth in dealers and home centers, with a continued improvement in repair and remodel volume and mix.
  • Plumbing & Accessories net sales were up 22 percent, and operating income before charges/gains was up 36 percent with share gains across the business.
  • Advanced Material Windows & Door Systems net sales were up 14 percent, as entry doors and windows each grew double digits. Operating income before charges/gains for the segment increased 39 percent, while GAAP operating income was down 8 percent.
  • Security & Storage net sales were up 10 percent, with a security sales increase of 7 percent and double digit tool storage sales growth. Segment operating income before charges/gains was up 42 percent.

“We delivered strong sales and profit growth across all segments of our business in the third quarter and have built solid momentum throughout the year,” said Klein. “We believe we are still in the early stages of a multi-year housing recovery driven both by demand for new homes and consumers’ desire to improve existing homes. Importantly, we remain confident in our ability to leverage our structural competitive advantages to continue to outperform our market, and we are well positioned for 2014.”

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