Fortune Brands Home & Security Inc., the parent company of Therma-Tru Doors and Master Lock security products, reported that sales increased 7 percent in the first quarter of 2017.

“Our first quarter performance was solid and overcame the challenging comparison to last year’s strong performance. We remain on-track to deliver another year of increased sales, operating margin and EPS,” said Chris Klein, chief executive officer, Fortune Brands. “Sales and profit gains were broad based in the quarter, and due to our better than planned first quarter performance and some favorability in our tax rate, we are increasing our full year EPS outlook.”

Sales were $1.2 billion in the first quarter. Earnings per share were 50 cents compared to 38 cents in the prior-year quarter. Operating income was $114.9 million, compared to $95.5 million in the prior-year quarter.

“In the first quarter, operating margin before charges/gains for the total company grew by 80 basis points to 10.3 percent, with solid performance across all operating segments,” Klein said. “I am proud that our teams drove double digit operating margin during the seasonally lowest quarter for sales.”

Door sales were up 8 percent driven by growth in both the wholesale and retail channels. Operating margin before charges/gains increased 330 basis points to 7.8 percent. Security sales increased 7 percent with growth across all channels. Operating margin before charges/gains increased 200 basis points to 11.3 percent.

The company’s 2017 annual outlook continues to be based on a U.S. home products market growth assumption of 6 to 7 percent and an assumption of 5 to 6 percent growth for the total global market. The company expects full-year 2017 sales growth in the range of 6 to 8 percent.

Leave a Reply

Your email address will not be published. Required fields are marked *