DEERFIELD, IL - Fortune Brands Home & Security, parent of Masterbrand Cabinets and Simonton Windows, reported a 5 percent sales rise, to $935 million for the second quarter 2012.
Net income of $47.9 million was 8.6 percent higher than the year prior.
"We achieved this strong performance as new housing construction showed strong double-digit growth," said CEO Chris Klein, while noting "spending for home repairs and remodeling was uneven during the quarter and somewhat weaker than our expectations."
The cabinets segment, which includes the Masterbrand Cabinets divisions, grew by 1 percent, with Kitchen & Bath Cabinetry net operating profit up 22 percent to $18 million.
"Our Cabinets segment performed well in the face of continuing consumer hesitancy for big-ticket purchases," Klein said, noting FBHS's multi-channel strength allowed it to drive sales in more profitable segments of the market.
Advanced Material Windows & Door Systems net sales were up 7 percent, with strength in new construction contributing to growth in both the window and door product lines.
For the full year, FBHS predicts U.S. home products will grow in mid-single digits, as new construction showed better-than-expected strength in the second quarter while repair and remodel business was softer than expected. "Continuing unevenness in repair and remodel and due to our disciplined approach to pursuing sales growth that is also profitable, we believe our results will be in the lower end of that range," Klein said.
Separately, Fortune Brands authorized a $150 million stock buyback. This is the second full quarterly report since Fortune Brands Home & Security spun off as a separate, publicly traded company. The 16,000-employee business generated more than $3.3 billion in net sales in 2011.
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