Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, today announced fourth quarter and full-year 2013 results and issued its 2014 annual outlook for sales and earnings per share.
“We delivered another strong quarter and full year as we leveraged our structural competitive advantages and the market recovery to deliver profitable growth,” said Chris Klein, chief executive officer, Fortune Brands Home & Security. “Entering 2014, our annual outlook calls for continued growth based on our strong execution and the continuing market recovery for both new construction and, importantly, repair and remodel activity.”
Fourth Quarter 2013
For the fourth quarter of 2013, net sales were $1.10 billion, an increase of 16 percent over the fourth quarter of 2012. Diluted earnings per share were $0.37, compared to $0.11 in the prior-year quarter. Diluted EPS before charges/gains were $0.38, compared to $0.23 the same quarter last year. Operating income was $95.4 million, compared to $7.5 million in the prior-year quarter. Operating income before charges/gains was $97.3 million, compared to $61.2 million the same quarter last year.“Sales were up a combined 20 percent versus last year for our home segments in the fourth quarter as we benefitted from new construction and continued repair and remodel momentum. Importantly, total company operating income before charges/gains increased 59 percent,” Klein said. For each segment in the fourth quarter 2013, compared to the prior-year quarter:
- Kitchen & Bath Cabinetry net sales were up 34 percent. Sales increased across all channels led by dealers, with continued improvement in repair and remodel volume and mix. Operating income before charges/gains increased $21.3 million over last year to $33.6 million.
- Plumbing & Accessories net sales were up 7 percent, 10 percent excluding the benefit of a 53 rd week in 2012. Sales grew in all channels, with wholesale leading the growth and operating income before charges/gains up 28 percent.
- Advanced Material Windows & Door Systems net sales were up 13 percent, with entry doors sales up 19 percent and windows sales up 7 percent. Operating income before charges/gains for the segment increased 18 percent.
- Security & Storage net sales decreased 2 percent. As expected, a security sales increase of 8 percent was more than offset by a 16 percent tool storage decline, due primarily to timing of holiday shipments to the largest customer. Segment operating income before charges/gains was up 8 percent.