DEERFIELD, Ill.- Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, today announced 2012 fourth quarter and full-year results.

Fourth quarter 2012

For the fourth quarter of 2012, net sales were $948 million, an increase of 8 percent over the fourth quarter of 2011. Diluted earnings per share were $0.11, compared to a loss of $0.46 in the prior year. Diluted EPS before charges/gains was $0.23, a 35 percent increase over the prior year.

Operating income was $7.5 million, compared to a loss of $109.4 million in the prior year. Operating income before charges/gains was $61.2 million, up 39 percent over the prior year.

"We grew both sales and profit slightly more than expected this quarter," said Chris Klein, chief executive officer, Fortune Brands Home & Security. "And we again outperformed our market, which was driven by double-digit growth in new housing construction and moderate growth for home repairs and remodeling, despite a continued lag in purchases of large ticket items, such as cabinets and windows."

For each segment in the fourth quarter 2012, compared to the prior-year quarter:

Kitchen & Bath Cabinetry net sales were up 12 percent, with operating income before charges/gains of $12.3 million vs. a loss of $3.1 million. Growth and share gains were driven by product line expansion and overall market improvement, particularly in new construction, with increases in all channels.

Plumbing & Accessories net sales were up 15 percent, with increases in all channels. Strong gains continued in U.S. wholesale from new construction and international markets, especially China. New product introductions drove retail channel increases.

Advanced Material Windows & Door Systems net sales were up 1 percent, with Door sales increasing 5 percent and Windows declining 2 percent.

Security & Storage net sales were down 4 percent. Excluding the impact of a 53rd week in 2011, segment sales were flat, with Security sales increasing 4 percent and Storage sales declining 5 percent.

"We had a strong fourth quarter and full year 2012, doing just what we said we would. Our business teams continue to deliver results that are meeting or exceeding our expectations as we outperform the market for our products and continue to drive profitable growth," Klein said.

Full year 2012

For the full year 2012, net sales were $3.6 billion, an increase of 8 percent over 2011. Diluted earnings per share were $0.71, compared to a loss per share of $0.23 in the prior year, and diluted EPS before charges/gains was $0.89 vs. $0.60 last year, an increase of 48 percent.

Full-year operating income was $162 million, an increase of $177 million from the prior year, and full-year operating income before charges/gains was $228 million, an increase of 40 percent.

"Our balance sheet as of December 31, 2012 became even stronger, with $336 million in cash, gross debt of $326 million and nothing outstanding on our $650 million revolving credit facility. Our net debt-to-EBITDA before charges/gains ratio is zero," said Lee Wyatt, senior vice president and chief financial officer. "We are solidly positioned with several options to drive significant incremental shareholder value."

Outlook for 2013

For the full year 2013, the Company's assumption for the growth of the U.S. market for its home products is 6 to 8 percent versus 2012. Based on this planning assumption and other factors, and the Company's expectation to continue outperforming this market, the Company expects full year 2013 net sales to increase at a high-single-digit rate. The Company expects diluted EPS before charges/gains to be in the range of $1.13 to $1.23. This targeted range compares to 2012 diluted EPS before charges and gains of $0.89, as stated above.

The Company expects free cash flow for 2013 to be at least $200 million, net of capital expenditures of approximately $100 million.

"In 2013, we expect the home products market to improve much like 2012, and I am confident that we should outperform our market in similar form, delivering solid sales and profit growth. We believe our strong brands, compelling product innovation and operational excellence, along with our solid capital structure, position us to continue to outperform now and well into the future," Klein said.

About Fortune Brands Home & Security, Inc.

Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, Ill., creates products and services that help fulfill the dreams of homeowners and help people feel more secure. The company's trusted brands include Master Lock, MasterBrand cabinets, Moen faucets, Simonton windows and Therma-Tru entry door systems. FBHS holds market leadership positions in all of its segments. The company's 16,000 associates generated $3.6 billion in net sales in 2012. FBHS is part of the S&P MidCap 400 Index. For more information, please visit

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