Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, today announced first quarter 2014 results and updated its 2014 annual outlook for sales and earnings per share.
“Our teams executed well in a quarter challenged by extreme weather across half of the country that was compounded by an expected lower level of new construction,” said Chris Klein, chief executive officer, Fortune Brands. “We remain well positioned to deliver strong growth this year, offsetting some of the impact of weather in the first quarter, as the pace of demand reaccelerates. Our updated 2014 annual outlook has been revised to reflect the impact of the first quarter and calls for growth based on our continued share gains and the market recovery for both new construction and, more importantly, repair and remodel activity.”
First Quarter 2014
For the first quarter of 2014, sales were $966 million, an increase of 9 percent over the first quarter of 2013. Earnings per share were $0.24, compared to $0.22 in the prior-year quarter. EPS before charges/gains were $0.25, compared to $0.24 the same quarter last year. Operating income was $62.1 million, compared to $56.6 million in the prior-year quarter. Operating income before charges/gains was $65.1 million, compared to $62.4 million the same quarter last year.
“Excluding the estimated impact of weather, sales would have increased 13 percent for the total company and 14 percent for our combined home segments in the first quarter. Importantly, total company operating income before charges/gains would have increased 35 percent excluding weather,” Klein said.
For each segment in the first quarter of 2014, compared to the prior-year quarter:
- Kitchen & Bath Cabinetry sales were up 19 percent. Sales included strong increases in the dealer channel, with continued strength in repair and remodel volume and mix. Operating income before charges/gains increased 34 percent to $20 million.
- Plumbing & Accessories sales were even with the prior-year quarter, with growth in the U.S. wholesale channel and China. Operating income before charges/gains increased 1 percent.
- Advanced Material Windows & Door Systems sales were up 5 percent. Entry doors sales were up 8 percent and windows sales were even to prior year. Operating income before charges/gains for the segment increased 3 percent.
- Security & Storage sales increased 3 percent. Within the segment, security sales increased 4 percent and tool storage sales were up 2 percent. Segment operating income before charges/gains was down 2 percent.
“With winter behind us, overall consumer traffic is increasing as more homeowners are able to plan and design remodel projects,” said Klein. “As momentum begins to build through the second quarter, we are preparing for a stronger second half and our teams remain poised to deliver strong growth for the full year.”