Fortune Brands Home and Security (FBHS), parent company to Therma-Tru, released its first quarter 2020 results, showing how COVID-19 impacted the company.

“Despite strong sales and profit growth in the first quarter, we began to proactively take steps to rigorously manage cash and expenses and further strengthen our balance sheet to manage any impact of the COVID-19 pandemic and emerge poised to accelerate share gains in a recovery,” said Nicholas Fink, Fortune Brands CEO. “Our strong operating performance in the quarter was evident throughout our business and will distinguish us in a more challenging environment.”

The company’s first quarter results included:

  • Sales of $1.4 billion, an increase of 6% over the first quarter of 2019; and
  • Operating income of $155 million, compared to $135.6 million in the prior-year quarter.

FBHS’s doors and security segment saw its sales increase by 6% when compared to 2019’s first quarter. According to the financial report, on April 29, 2020, FBHS, in cooperation with its lending group, executed a new supplemental 364-day revolving credit facility. This new facility increases borrowing capacity by $400 million and operates essentially under the same terms and conditions as the existing facility, the financial report noted.

“After a very strong start to the year, the virus has made demand expectations uncertain,” stated Patrick Hallinan, Fortune Brands chief financial officer. “In addition to expense and cash management improvement initiatives being pursued throughout the company, it was prudent to add further financial flexibility and liquidity during this uncertain time.”

Due to COVID-19, the company expects a deceleration in its markets in the second and third quarter. FBHS has also established plans to reduce expenses and cash deployment. These actions are already underway, according to FBHS, and will be implemented in waves, which are expected to offset some of the anticipated headwinds for demand.

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