Fortune Brands Reports Sales Growth in Third QuarterOctober 27th, 2016 by Editor
Fortune Brands Home & Security Inc., the parent company of Therma-Tru doors and Master Lock security products, announced third quarter 2016 results from continuing operations and confirmed its 2016 annual outlook for earnings per share.
“In the third quarter, sales grew across our company despite softer repair and remodel activity, challenging prior year comparisons, and select channel inventory reductions,” said Chris Klein, the CEO of Fortune Brands. “Importantly, our teams delivered strong profit performance across all segments. Since late September and through October we have seen order patterns improve. Based on the current pace of market growth and our solid execution, we continue to expect to deliver strong full-year results.”
For the third quarter of 2016, sales were $1.28 billion, an increase of 3 percent over the third quarter of 2015. Earnings per share were $0.77, compared to $0.61 in the prior-year quarter. EPS before charges/gains were $0.80, compared to $0.64 the same quarter last year. Operating income was $183.1 million, compared to $160.3 million in the prior-year quarter. Operating income before charges/gains was $188.7 million, compared to $167.7 million the same quarter last year, up 13 percent.
Door sales were up 4 percent driven by the wholesale and retail channels, and operating margin before charges/gains increased 380 basis points to 17.3 percent.
Security sales increased 6 percent and were strong across multiple channels. Operating margin before charges/gains was 17 percent.
The company’s 2016 annual outlook is based on a revised U.S. home products market growth assumption of 6 percent and 5 percent growth for the total global market. Due to slower summer repair and remodel activity, partly offset by incremental sales growth in the GPG, the company’s full-year 2016 sales growth outlook was revised to 9 – 10 percent.