Window Segment Sales Increase in Second Quarter for Fortune BrandsJuly 27th, 2012 | Category: Industry News
In announcing 2012 second-quarter results, Fortune Brands Home & Security Inc. reported that within its Advanced Material Windows & Door Systems segment net sales were up 7 percent, “with strength in new construction contributing to growth in both the window and door product lines.” The segment’s net sales were $159.6 million compared to $149.0 million in 2011.
Company-wide, net sales were $935 million, an increase of 5 percent over the second quarter of 2011. Diluted earnings per share were 29 cents compared to 28 cents in the prior year quarter, and diluted EPS before charges/gains was 29 cents compared to 24 cents the prior year, a 21-percent increase.
Operating income was $72.3 million, an increase of 11 percent over the prior-year quarter. Operating income before charges/gains was $72.7 million, up 18 percent year-over-year.
“We had a very good second quarter. We met our expectations for sales growth and exceeded them for profit growth,” says Chris Klein, CEO. “We achieved this strong performance as new housing construction showed strong double-digit growth and spending for home repairs and remodeling was uneven during the quarter and somewhat weaker than our expectations.”
For the full year, the company says its assumption for the growth rate of the market for its U.S. home products remains mid-single digits, as new construction showed better-than-expected strength in the second quarter while repair and remodel business was softer than expected.
In addition, the company’s board of directors has authorized the repurchase of up to $150 million of shares of the company’s common stock over the next three years on the open market or in privately negotiated transactions in accordance with applicable securities laws. The purchases, if made, will occur from time to time depending on market conditions. This authorization does not obligate the company to repurchase any dollar amount or number of shares of common stock. The authorization is in effect until July 25, 2015, and may be suspended or discontinued at any time.