Fortune Brands Posts Strong Sales in 2020 and Predicts Continual Growth This YearFebruary 4th, 2021 by Tara Taffera
Fortune Brands Home and Security Inc. reported its fourth quarter and full-year 2020 results this week. It’s good news for the company—and the housing market in general—with fourth quarter and full-year 2020 sales increasing approximately 13% and 6%, to $1.7 billion and $6.1 billion, respectively, year-over-year. Even better, the company, parent to both Therma-Tru and Larson Manufacturing, expects demand to continue in 2021.
Nicholas Fink, CEO, pointed out that the company’s key housing markets are entering a period of long-term expansion, and there is renewed consumer focus on the value of the home.
“Our consumers desire larger, multifunctional spaces to combine work, education, and entertainment within the home as well as expanded outdoor living spaces,” he said. “Demographic forces, combined with very healthy homeowner balance sheets, are driving accelerated activity in the housing industry.”
For the fourth quarter of 2020, sales were $1.7 billion, an increase of 13% over the fourth quarter of 2019. Operating income was $233.2 million, compared to $192.5 million in the prior-year quarter. In the Outdoors and Security segment, sales increased 11%, driven by strong double-digit sales growth of composite decking and doors, according to Fortune Brands.
For the full year 2020, sales were approximately $6.1 billion, an increase of approximately 6% over 2019. Operating income was $801.4 million, compared to $698.5 million in the prior year.
“Facing unprecedented challenges, we delivered above-market growth and margin acceleration and positioned our company to continue to deliver share gains and margin improvement in 2021 and beyond,” said Fink. “Our teams’ abilities to execute and remain nimble allows us to capitalize on an increasing set of growth and margin opportunities.”
Patrick Hallinan, chief financial officer, said the company used the challenges of 2020 to improve focus and productivity.
“The efficiency programs undertaken in 2020 have put us ahead of our margin improvement timeline, and we expect to continue toward our goals during 2021,” he said. “While there may be instances of macro uncertainty and cost inflation in the year ahead, these challenges have been anticipated, and we expect to manage them effectively – as we have in 2020 and in preceding years. We expect another year of strong free cash flow generation in 2021.”