Fortune Brands Posts Sales Increase, and Makes an AnnouncementAugust 22nd, 2018 by Drew Vass
Fortune Brands recently released their second quarter sales, and made a huge announcement as well. The home and security company showed a 5% increase over the 2017 second quarter, making their sales $1.4 billion. Earnings per share (EPS) were $0.88, where as they were $0.90 in last year’s second quarter. Before charges and gains, the EPS was $1.00, compared to $0.92 in last year’s second quarter. The operating income was $188.6 million, compared to 2017’s second quarter $209.2 million.
“In the second quarter our teams delivered solid results overall and the performance in our Plumbing and (specifically) Doors business was outstanding, again,” commented Fortune Brands CEO Chris Klein.
Along with solid financials, Fortune Brands announced that they will be combining their Doors and Security divisions. They anticipate the unified platform to boost both sales and growth, with approximately $1.2 billion in annual sales.
“(We have combined) our Doors and Security business units to drive higher levels of scale, innovation and profitability,” Klein stated. “These actions should begin providing benefits this year while enabling us to drive profitable growth over the next several years.”
The combination of Doors and Security are already seeing a new break through. Master Lock and Therma-Tru are currently pursing, “next generation connected locking and security applications.” This new alliance comes as the company saw door sales increase 20% in the second quarter. This was driven by growth in all areas, specifically in the US home products market. The annual growth assumption for the US home products market is 5% to 7%, with the global assumption being 5% to 6%. The second quarter report states that the company fully expects the full-year 2018 sales growth to be in the 6% to 7% range.