DEERFIELD, Ill.- MasterBrand Cabinets' parent Fortune Brands said sales increased 3 percent to $1.28 billion, despite softening activity in repair and remodeling. Cabinet sales flattened.
“In the third quarter, sales grew across our company despite softer repair and remodel activity, challenging prior year comparisons, and select channel inventory reductions,” said Chris Klein, chief executive officer, Fortune Brands. “Importantly, our teams delivered strong profit performance across all segments. Since late September and through October we have seen order patterns improve. Based on the current pace of market growth and our solid execution, we continue to expect to deliver strong full-year results.”
MasterBrand Cabinet sales were flat from the prior year. Excluding a significant new program launch and promotional timing in the in-stock vanity business in the third quarter of 2015, cabinet sales grew mid-single digits.
Door sales from Therma-Tru entry door systems were up 4 percent driven by the wholesale and retail channels, and operating margin before charges/gains increased 380 basis points to 17.3 percent.
Fortune Brands revised its 2016 annual outlook for U.S. home products market growth assumption of 6 percent and 5 percent growth for the total global market. Due to slower summer repair and remodel activity, partly offset by incremental sales growth in its newly created Global Plumbing Group, the company’s full-year 2016 sales growth outlook was revised to 9 - 10 percent.
“Despite slower summer repair and remodel activity, late September and October trends have improved and we are set up for a solid fourth quarter,” said Klein. “While short term labor challenges persist for builders and remodelers, long-term demand fundamentals for both new construction and repair and remodel remain strong. Our teams continue to perform well and we are positioned for continued growth in 2017.”
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