Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, today announced second quarter 2014 results and updated its 2014 annual outlook for sales and earnings per share. The Company also announced value-enhancing activities that include an acquisition and year-to-date share repurchases.
“Our teams executed well, delivering a solid second quarter as consumer traffic is increasing and demand gradually improved from the soft start to the year,” said Chris Klein, chief executive officer, Fortune Brands. “We continue to gain share and remain on track to deliver strong growth this year.”
Second Quarter 2014
For the second quarter of 2014, sales were $1.14 billion, an increase of 10 percent over the second quarter of 2013. Earnings per share were $0.55, compared to $0.37 in the prior-year quarter. EPS before charges/gains were $0.55, compared to $0.41 the same quarter last year. Operating income was $136.6 million, compared to $106.5 million in the prior-year quarter. Operating income before charges/gains was $136.8 million, compared to $107.2 million the same quarter last year.“Sales increased 10 percent for the total company and 12 percent for our combined home segments in the second quarter. Importantly, total company operating income before charges/gains increased 28 percent,” Klein said. For each segment in the second 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 from continued share gains and strength in repair and remodel volume and mix. Operating income before charges/gains increased 31 percent to $46 million.
- Plumbing & Accessories sales increased 5 percent, led by growth in the U.S. wholesale channel and international. Operating income before charges/gains increased 26 percent.
- Advanced Material Windows & Door Systems sales were up 9 percent. Entry doors sales were up 11 percent and windows sales were up 7 percent to the prior year. Operating income before charges/gains for the segment increased 53 percent.
- Security & Storage sales decreased 5 percent. Within the segment, security sales increased 1 percent and tool storage sales decreased 21 percent, which resulted in lower operating income before charges/gains.