Strong Q4 for Fortune Brands Home & Security
Deerfield, Ill.-based Fortune Brands Home & Security, a home and security products company, posted 8% sales growth in the fourth quarter.
"We grew both sales and profit slightly more than expected this quarter,” said Chris Klein, CEO of Fortune Brands Home & Security. “And we again outperformed our market, which was driven by double-digit growth in new housing construction and moderate growth for home repairs and remodeling, despite a continued lag in purchases of large ticket items, such as cabinets and windows.”
For the fourth quarter of 2012, net sales were $948 million, an increase of 8% over the fourth quarter of 2011. Operating income was $7.5 million, compared with a loss of $109.4 million in the prior year.
The company’s brands include Master Lock, MasterBrand cabinets, Moen faucets, Simonton windows and Therma-Tru entry door systems. For each segment in the fourth quarter of 2012, compared with the prior-year quarter:
Kitchen & Bath Cabinetry net sales were up 12%, with operating income before charges/gains of $12.3 million versus a loss of $3.1 million. Growth and share gains were driven by product line expansion and overall market improvement, particularly in new construction, with increases in all channels.
Plumbing & Accessories net sales were up 15%, with increases in all channels. Strong gains continued in U.S. wholesale from new construction and international markets, especially China. New product introductions drove retail channel increases.
Advanced Material Windows & Door Systems net sales were up 1%, with Door sales increasing 5% and Windows declining 2%.
Security & Storage net sales were down 4%. Excluding the impact of a 53rd week in 2011, segment sales were flat, with Security sales increasing 4% and Storage sales declining 5%.
For the full year 2012, net sales were $3.6 billion, an increase of 8% over 2011. Full-year operating income was $162 million, an increase of $177 million from the prior year.
“In 2013, we expect the home products market to improve much like 2012, and I am confident that we should outperform our market in similar form, delivering solid sales and profit growth” Klein said.