FBHS cabinetry sales rose 17 percent in the second quarter
July 27, 2016 | 9:27 pm UTC
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Photo By Masterband Cabinets

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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Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.