Fortune Brands Posts Increase in Fourth QuarterFebruary 4th, 2013 by DWM Magazine
Fortune Brands Home & Security Inc., parent company of brands including Simonton windows and Therma-Tru entry door systems announced its 2012 fourth quarter and full-year results in which net sales increased by 8 percent. Advanced Material Windows & Door Systems net sales were up 1 percent, with door sales increasing 5 percent and windows declining 2 percent.
For the fourth quarter of 2012, net sales were $948 million, an increase of 8 percent over the fourth quarter of 2011. Diluted earnings per share were $0.11, compared to a loss of $0.46 in the prior year.
Operating income was $7.5 million, compared to a loss of $109.4 million in the prior year. Operating income before charges/gains was $61.2 million, up 39 percent over the prior year.
“We grew both sales and profit slightly more than expected this quarter,” says Chris Klein, CEO, 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 full year 2013, the company’s assumption for the growth of the U.S. market for its home products is 6 to 8 percent versus 2012. Based on this planning assumption and other factors, and the company’s expectation to continue outperforming this market, the company expects full year 2013 net sales to increase at a high-single-digit rate.
“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,” says Klein. “We believe our strong brands, compelling product innovation and operational excellence, along with our solid capital structure, position us to continue to outperform now and well into the future.”