DEERFIELD, IL - A surge in kitchen and bath cabinetry sales helped spur a strong second quarter for MasterBrand Cabinets parent Fortune Brands Home & Security. Operating income from cabinetry rose 31 percent.
MaterBrand kitchen and bath cabinetry sales climbed 19% to $467.9 million in the second quarter; operating income increased 31% to $46 million. Fortune Brands attributed these gains to strong increases in the dealer channel from continued share gains and strength in repair and remodel volume and mix.
Fortune Brands in its entirety posted second quarter sales of $1.14 billion, an increase of 10 percent over the second quarter of 2013. The company's total operating income for the second quarter rose 28% to $136.8 million.
““We ... continued to invest in incremental capacity to support sales growth to approximately $6 billion over the next 3+ years,” said Lee Wyatt, chief financial officer. “In the second quarter of 2014, we made investments of 2 cents primarily for expenses related to planning, designing and the early stages of implementing incremental capacity in the cabinetry and plumbing segments.”
Sales in window and door materials saw growth of 9 percent during the quarter. Entry doors sales were up 11 percent and windows sales were up 7 percent to the prior year.
CEO Chris Klein said, “We have seen a gradual improvement in the pace of new construction and consumer spending. However, our updated 2014 annual outlook for the home products market now reflects less growth in the second half of 2014 than we last estimated. Still, we remain on track to deliver strong growth this year and are well-positioned for accelerating growth in 2015.”
In June Fortune Brands announced it would repurchase up to $250 million of shares of the company's common stock over the next two years.
The company also announced the purchase of Sentry Safe, a manufacturer of personal safes, for $117.5 million. Sentry Safe will become part of Fortune Brands' Master Lock division.
Have something to say? Share your thoughts with us in the comments below.