The outlook for home repair and remodeling is fueling Fortune Brands Home & Security’s optimism for 2014.
The Deerfield, Ill.-based multi-purpose home product company reported fourth-quarter sales of $1.10 billion, up 16% from the same quarter last year. Net income was $64.6 million, up from $18.6 million in last year’s quarter.
For the full year, Fortune Brands reported a 15.8% sales gain and 2013 sales of $4.16 billion. Net income for the year was $230.9 million, compared with $119.7 million in the previous year.
“Sales were up a combined 20% versus last year for our home segments in the fourth quarter as we benefited from new construction and continued repair and remodel momentum. Importantly, total company operating income before charges/gains increased 59%,” said Chris Klein, CEO of Fortune Brands Home & Security.
Kitchen & Bath Cabinetry net sales were up 34%. Sales increased across all channels led by dealers, with continued improvement in repair and remodel volume and mix. Operating income before charges/gains increased $21.3 million over last year to $33.6 million.
Plumbing & Accessories net sales were up 7%, 10% excluding the benefit of a 53rd week in 2012. Sales grew in all channels, with wholesale leading the growth and operating income before charges/gains up 28%.
Advanced Material Windows & Door Systems net sales were up 13%, with entry doors sales up 19% and windows sales up 7%. Operating income before charges/gains for the segment increased 18%.
Security & Storage net sales decreased 2%. As expected, a security sales increase of 8% was more than offset by a 16% tool storage decline, due primarily to timing of holiday shipments to the largest customer. Segment operating income before charges/gains was up 8%.
“We delivered another strong quarter and full year as we leveraged our structural competitive advantages and the market recovery to deliver profitable growth,” said Chris Klein, CEO, Fortune Brands Home & Security. “Entering 2014, our annual outlook calls for continued growth based on our strong execution and the continuing market recovery for both new construction and, importantly, repair and remodel activity.”
The company completed its acquisition of WoodCrafters in 2013. Other Fortune Brands brands include Master Lock security products, MasterBrand cabinets, Moen faucets, Simonton windows and Therma-Tru entry door systems.