Fortune Brands Sees Sales Growth in Q4 and 2019 OverallJanuary 30th, 2020 by Kyra Thompson
Fortune Brands Home and Security (FBHS), parent company to Therma-Tru, released its fourth quarter results revealing positive gains for both the quarter year-over-year and the year 2019 overall.
“Our strong results during the fourth quarter reflect our team’s ability to execute well in a
housing market with modest growth and tariff challenges,” said CEO Nicholas Fink.
Results for the fourth quarter of 2019 year-over-year included:
- Sales were 1.5 billion up 4% from same quarter last year;
- Earnings per share (EPS) were $0.74, compared to $0.60 in the prior-year quarter; and
- Operating income was $192.5 million, compared to $140.1 million in 2018’s fourth quarter.
FBHS has three segments: doors and security, plumbing and cabinets. For the doors and security segment, sales increased 8%, driven by what the company says was “strong double-digit sales” growth of composite decking and operating performance in security products. Operating margin before charges gains in doors and security was 14.9%, which was up over 600 basis points versus the fourth quarter of 2018, reports the company.
For the entire year of 2019, chief financial officer Patrick Hallinan said it was “was more challenging than anticipated,” but that the company performed well in spite of those challenges. Sales for 2019 were nearly $5.8 billion, an increase of 5% over 2018 and EPS were $3.06 compared to $2.66 in the prior year.
Looking to the future, company officials said they expect full-year 2020 sales growth in the range of 5-6%, based on the assumption of a total global market expanding by 3-5% including growth in the U.S. home products market of approximately 4-6%. The EPS before charges and gains in 2020 is expected to be in the range of $3.83 to $4.03 and the expected free cash flow is $565 to $585 million.
“We believe there will be a better home products market in 2020,” said Fink. “We have put in place a prudent plan to generate solid EPS growth in 2020 and could have upside to that plan should U.S. new construction growth exceed expectations.”