Cabinets pace Fortune Brands

Deerfield, Illinois-based Fortune Brands reported strong performance in the fourth quarter and full year as cabinet sales showed particular strength.

The company anticipated growth in the back half of the year, and that’s what happened, according to CEO Chris Klein.

““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,” he said.

The company’s brands include MasterBrand cabinets, Moen faucets, Therma-Tru entry door systems, and Master Lock and SentrySafe security products.

Cabinet sales increased 33% in the fourth quarter from the prior year, including the impact of the Norcraft acquisition as the dealer channel and in-stock cabinet/vanities channel grew double digits. Cabinet operating margin before charges/gains improved 220 basis points to 10.0%.

Plumbing sales increased 7%, with growth across the U.S. wholesale and retail channels and China. Excluding the negative impact of currency, plumbing sales increased 10%.

Door sales were up 5% with growth in both the wholesale and retail channels.

Security sales increased 3% driven by U.S. retail and SentrySafe. Sales growth was partially offset by the negative impact of currency.

The company’s income statement includes the following:

Sales

15Q4:$1.22 billion

14Q4: $1.04 billion

% change up: 18%

15FY: $4.58 billion

14FY: $4.01 billion

% change: up 14%

Operating income

15Q4: $147 million

14Q4: $104 million

% change: up 42%

15FY: $538 million

14FY: $431 million

% change: up 25%