DEERFIELD, IL — MasterBrands parent company, Fortune Brands Home & Security, manufacturer of custom kitchen cabinet brands, reported a strong first quarter with total net sales increase of $799 million, up 12 percent from $715 million the prior year and beating analysts’ expectations. Net income rose to $13 million compared to a $10 million loss in 2011. Kitchen and bath cabinet sales of $311 million were up nearly 4 percent on the strength of the company’s dealer network and sales to home builders.
“We grew sales and profit more than expected, and we believe we continued to gain share while benefiting from a stronger-than-anticipated market," said Chris Klein, CEO, Fortune Brands Home & Security, in an earnings release. "Spending for home repairs and remodeling increased, although consumers are still cautious about big-ticket purchases, like cabinets."
Fortunre Brands results over all were also aided by a bump in new housing construction, "also stronger than expected in the quarter, with single-family and multi-family starts on the rise," said Klein. "While milder-than-average weather likely played a part in this home products market performance, we experienced strength across-the-board, even in geographies and product segments where weather was not a factor."
Fortune Brands said it will update its 2012 outlook with net sales expected to reach high-single-digit rate as opposed to the original estimate of mid-single digits. Fortune Brands Home & Security, whose units include Therma-Tru Doors, Simonton Windows, Fypon Moulding, Master Lock and Master Lock, went public in the fall of 2011.
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