AP News

Fortune Brands posts 3Q profit gain, lifts outlook


DEERFIELD, Ill. (AP) — Fortune Brands Home & Security Inc. on Tuesday posted sharply higher third-quarter net income as the home-products maker benefited from an improving housing market, particularly for new construction.

The company also lifted its full-year earnings outlook above Wall Street's expectations.

The maker of Moen faucets, Master locks, MasterBrand cabinets and other products said its net income in the July-to-September quarter rose to $40 million, or 24 cents per share, up from earnings of $2.2 million, or a penny per share, in the year-ago quarter.

Excluding one-time items, Fortune Brands posted adjusted earnings of 29 cents per share.

Analysts, whose estimates typically exclude one-time items, had expected earnings of 25 cents per share on average, according to a survey by FactSet.

Revenue increased 7 percent to $909.1 million from $848 million, beating analysts' consensus forecast of $898.8 million.

Revenue from Fortune's largest business, kitchen and bath cabinetry, rose 6 percent to nearly $330 million, while plumbing and accessories sales increased nearly 12 percent to $278 million. That segment reported strong growth in its U.S. wholesale business, as well as in international markets, especially China.

Fortune's advanced material windows and door system segment posted a 7 percent revenue increase, with security and storage revenue growing 2 percent.

CEO Chris Klein said the market for Fortune's products improved, with double-digit growth in new housing construction and moderate improvement in spending for home repairs and remodeling.

The company, based in Deerfield, Ill., raised its full-year 2012 earnings outlook to a range of 86 cents to 88 cents per share, excluding one-time items. That's up from the company's previous expectations for a range of 77 cents to 87 cents.

Analysts had been expecting 83 cents per share, on average.

Fortune Brands reported third-quarter results after its shares fell $1.17, or nearly 4.2 percent, to close at $26.97. The stock added a penny in after-hours trading to $26.98.

Fortune Brands Home & Security is the result of an October 2011 spinoff from the former Fortune Brands Inc., which then renamed itself Beam Inc. after its flagship bourbon brand.


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus