Fortune Brands Home & Security Reports Strong Sales for 2013January 30th, 2014 | Category: Industry News
Fortune Brands Home & Security Inc. (FBHS) has announced its fourth quarter and full-year 2013 results and issued its 2014 annual outlook for sales and earnings per share. According to the company, net sales for the fourth quarter of 2013 increased 16 percent year-over-year to $1.1 billion. Full-year 2013 net sales also increased by 16 percent.
“We delivered another strong quarter and full year as we leveraged our structural competitive advantages and the market recovery to deliver profitable growth,” says Chris Klein, CEO. “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 says.
The company’s Advanced Material Windows & Door Systems segment 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.
Full Year 2013
For the full year 2013, net sales were $4.2 billion, an increase of 16 percent over 2012. Diluted earnings per share were $1.34 compared to $0.71 in the prior year, and diluted EPS before charges/gains were $1.50 versus $0.89 last year, an increase of 69 percent.
“We have built strong momentum over the past two years,” says Klein. “We believe we are still in the early stages of a multi-year housing recovery and are well positioned to continue to leverage our structural competitive advantages and drive profitable growth well into the future.”
Annual Outlook for 2014
The company’s 2014 annual outlook is based on a home products market growth assumption of 10 to 11 percent. With confidence in the housing market recovery and expectation to continue outperforming the market, the company expects full-year 2014 net sales to increase 11 to 13 percent. FBHS anticipates diluted EPS before charges/gains to be in the range of $1.91 to $2.01. This targeted range compares to 2013 diluted EPS before charges/gains of $1.50.
The company expects to generate $250-plus million in free cash flow in 2014, net of capital expenditures of $130 to $140 million, as it begins to invest in incremental capacity and infrastructure to support multi-year growth.