DEERFIELD, Ill. - Fortune Brands Home & Security, parent of Norcraft and Masterbrand Cabinets, says second quarter 2016 sales were $1.3 billion, an increase of 11 percent over the second quarter of 2015.
“We drove strong sales and profit gains across all segments in the second quarter as the home products market continued to grow at the pace that we had planned,” said Chris Klein, CEO.
Overall, in the second quarter, sales increased 12 percent for Fortune Brands U.S. home products businesses, Klein said. Cabinet sales increased 17 percent from the prior year; 7 percent excluding the impact of Norcraft. which Fortune Brands acquired last year.
Sales gains were strongest in the dealer, builder and home center special order channels, and segment operating margin before charges/gains increased 260 basis points to 12.9 percent.
Door sales were up 9 percent driven by the wholesale channel and operating margin before charges/gains increased 240 basis points to 15.3 percent.
Separately, a credit facility was expanded to $1.25 billion, and a term loan has been eliminated. “With the flexibility of this new credit facility, we are now better positioned to drive incremental growth with our balance sheet and cash flow,” said Lee Wyatt, CFO.
“Demand for our home products remains strong, our teams continue to outperform the market for our products,” said Klein. “Included in our outlook, we also plan to increase our brand spending starting in the second half of 2016 to drive additional growth.”
Klein said Fortune Brands outlook is 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. It expects full-year 2016 sales growth in the range of 10 to 12 percent.
In addition to MasterBrand cabinets, Fortune Brands owns Moen faucets, Therma-Tru entry door systems, and Master Lock and SentrySafe security products.
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