DEERFIELD, Ill. - Fortune Brands Home & Security, Inc. (FBHS), a home and security products company, has announced its second quarter 2017 results.
Sales were $1.4 billion, an increase of 5 percent over the second quarter of 2016. Earnings per share were $0.90, compared to $0.80 in the prior-year quarter. EPS before charges/gains were $0.92, compared to $0.82 the same quarter last year. Operating income was $212.4 million, compared to $187.7 million in the prior-year quarter. Operating income before charges/gains was $215.6 million, compared to $191.7 million the same quarter last year, up 12 percent.
“In the second quarter, sales increased 6 percent for our home products businesses, and 7 percent excluding foreign currency," said Chris Klein, cheif executive officer, Fortune Brands. "Importantly, our teams focused on profitable growth and increased total company operating margin before charges/gains by 100 basis points to 15.8 percent."
For each segment in the second quarter of 2017, compared to the prior-year quarter:
- Plumbing sales increased 15 percent with growth in all businesses. Operating margin before charges/gains was 23.8 percent.
- Cabinet sales increased 1 percent against a strong 17 percent prior year comparison. Growth was driven by strength in new construction and in-stock cabinets and vanities, partly offset by softness in higher-end repair and remodel and in Canada. Segment operating margin before charges/gains increased 70 basis points to 13.6 percent.
- Door sales increased 4.5 percent driven by new construction and operating margin before charges/gains increased 160 basis points to 16.9 percent.
- Security sales decreased 2 percent due primarily to shifts in the timing of sales. Operating margin before charges/gains increased 160 basis points to 15.0 percent.
The Company’s 2017 annual outlook continues to be based on a U.S. home products market growth assumption of 6 to 7 percent and an assumption of 5 to 6 percent growth for its total global market. The Company expects full-year 2017 sales growth in the range of 6 to 8 percent.
The Company raised the midpoint of its full-year 2017 EPS outlook with a new range of $3.04 to $3.12 versus the prior range of $3.00 to $3.12 and expects to generate free cash flow of approximately $450 million for the full year 2017.
“I am pleased with our teams’ performance in the second quarter and the demand for home products remains solid,” said Klein. “We remain focused on driving profitable growth in the second half of the year, and we continue to evaluate a healthy pipeline of potential acquisitions.”
Headquartered in Deerfield, Illinois, Fortune Brands Home & Security creates products and services that fulfill the dreams of homeowners and help people feel more secure. The Company’s four operating segments are cabinets, plumbing, doors and security. Its trusted brands include more than a dozen core brands and holds market leadership positions in all of its segments. Fortune Brands is part of the S&P 500 Index.
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