DEERFIELD, Ill. - Driven by sales from its Norcraft Cabinets acquisition, MasterBrand Cabinets' parent Fortune Brands Home & Security (FBHS) reported a 34 percent jump in cabinetry sales first quarter.
"We drove strong sales and profit gains in the first quarter as the home products market continued to grow at the pace that we had planned and we remained focused on driving profitable growth in all channels," said Chris Klein, CEO, Fortune Brands.
For the first quarter of 2016, Fortune Brands Home & Security overall sales - including Delta plumbing, Masterlock,and its door manufacturing division, among other business - were $1.1 billion, an increase of 16 percent over the first quarter of 2015.
In its SEC filing, FBHS revealed figures about Norcraft Cabinets sales. It completed a tender offer for Norcraft in May 2015, paying $648.6 million in cash. Norcraft sales and profits for the three months ended March 31, 2016 were $89 million and $3 million (net of severance costs), respectively. FBHS says it incurred $15.2 million of Norcraft acquisition-related transaction costs.
Cabinet sales increased 34 percent, up $134 million, from the prior year to $550 million. Not counting Norcraft the increase was 12 percent.
Looking forward, FBHS says in its SEC filing:
The U.S. market for our home products consists of spending on both new home construction and repair and remodel activities within existing homes, with the substantial majority of the markets we serve consisting of repair and remodel spending. We believe that the U.S. market for our home products is in the midst of a multi-year recovery from the U.S. economic recession that ended in mid-2009 and that a continued recovery will largely depend on consumer confidence, employment, home prices, stable mortgage rates and credit availability. Over the long term, we believe that the U.S. home products market will benefit from favorable population and immigration trends, which will drive demand for new housing units, and from aging existing housing stock that will continue to need to be repaired and remodeled.
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