DEERFIELD, Ill. - Cabinet, door, and security products giant Fortune Brands Home & Security announced its third quarter 2018 results.
- Hurricane Florence stopped shipments at Fortune Brands for eight days.
- Cabinet sales declined 2 percent versus the prior year. Excluding strategic exits from targeted U.S. home center and Canadian business, cabinet sales increased 1 percent. Operating margin before charges/gains was 10.8 percent, or 11 percent excluding hurricane impact.
- Doors & security sales increased 8 percent driven by continued, strong double-digit sales growth of the company's Therma-Tru doors.
- Overall Q3 2018 sales increased 2.4 percent year-over-year to $1.4 billion.
“In the third quarter we experienced a slower summer market and the impact of Hurricane Florence on our North Carolina operations, which led to eight lost shipping days at the end of the quarter,” said Chris Klein, chief executive officer, Fortune Brands. “Despite this, our teams managed to grow sales, and consumer demand for housing and home products remains solid overall."
For the third quarter of 2018, sales were $1.4 billion, an increase of 2.4 percent over the third quarter of 2017. Earnings per share were $0.69, compared to $0.83 in the prior-year quarter. EPS before charges/gains were $0.93, compared to $0.83 the same quarter last year. Operating income was $147.1 million, compared to $199.5 million in the prior-year quarter. Operating income before charges/gains was $190.6 million, compared to $200.1 million the same quarter last year.
“While the storm did cause a meaningful sales and profit headwind in the quarter, particularly in our plumbing group, we expect to make up for the delayed shipments during the fourth quarter,” said Patrick Hallinan, chief financial officer, Fortune Brands. “In the fourth quarter, we expect our sales, profitability and earnings growth to accelerate in a market that should continue to grow solidly, even if at a more moderate pace.”
Fortune Brands owns MasterBrand cabinets, the largest North American cabinet manufacturer, which is ranked #4 overall on the FDMC 300 list of top North American wood products manufacturers. The company abruptly shuttered its Alabama manufacturing plant in June, leaving 445 employees unemployed.
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