Fortune Brands, a home and security products company, recently released its fourth quarter (Q4) 2015 results and provided its 2016 annual outlook.

“We delivered strong results at the high end of our guidance for the fourth quarter and full year 2015,” says Chris Klein, CEO. “We achieved strong sales growth as the home products market accelerated in the back half of the year, as we had anticipated.”

Highlights from the release include:

  • Q4 2015 sales increased 18 percent year-over-year to $1.22 billion with earnings per share (EPS) of $0.54, compared to $0.35 the year prior; EPS before charges/gains increased 27 percent to $0.56;
  • Full-year 2015 sales increased 14 percent with EPS of $1.88 compared to $1.64 the year prior; EPS before charges/gains increased 19 percent to $2.07; and
  • The company expects full-year 2016 EPS before charges/gains to grow to $2.42 – $2.52 on sales growth of 10 to 12 percent.

“In the fourth quarter, sales increased 22 percent for the U.S. businesses,” Klein says. “Operating margin before charges/gains for the total company grew significantly by 200 basis points to 12.0 percent, with solid performance across all operating segments.”

Door sales were up 5 percent in 2016 with growth in both the wholesale and retail channels, according to the company. Sales growth was partially offset by the negative impact of currency.

With its 2016 projection of 10 to 12 percent growth in 2016, the company expects to generate free cash flow of approximately $350 to $375 million in the upcoming year.

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