Fortune Brands 4Q sales increase 18 percent

DEERFIELD - Fortune Brands Home & Security reported sales for the fourth quarter of 2015 were up 18 percent over the same period last year.

Sales by the home and security products company were $1.22 billion, an increase of 18 percent over the fourth quarter of 2014. Earnings per share were 54 cents, compared to 35 cents in the prior-year quarter. Operating income was $140.3 million, compared to $79.2 million in the prior-year quarter. Operating income before charges/gains was $147.0 million, compared to $103.7 million the same quarter last year, up 42 percent.

"We delivered strong results at the high end of our guidance for the fourth quarter and full year 2015. We achieved strong sales growth as the home products market accelerated in the back half of the year, as we had anticipated. Our teams also delivered strong profit growth with efficiency gains in our recently expanded capacity and continued to focus on profitable growth in all channels," said Chris Klein, chief executive officer, Fortune Brands. "We have built on our momentum with another year of growth and market outperformance, and are well-positioned for continued strong performance going into 2016.

"In the fourth quarter, sales increased 22 percent for the U.S. businesses. Operating margin before charges/gains for the total company grew significantly by 200 basis points to 12.0 percent, with solid performance across all operating segments," Klein added

For the year 2015, sales were $4.6 billion, an increase of 14 percent over 2014. Earnings per share were $1.88 compared to $1.64 in the prior year.

"Our balance sheet remained strong during 2015. We completed the Norcraft acquisition and placed a $900 million bond issue that enhances our flexibility to drive incremental growth. We also repurchased shares and increased our quarterly dividend again," said Lee Wyatt, chief financial officer. "As of December 31, 2015, cash was $239 million and debt was $1.2 billion, resulting in net debt to EBITDA of 1.4 times and giving us substantial flexibility to continue to create incremental shareholder value."