Fortune Brands Home & Security, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016;; Revises Earnings Guidance for the Full Year 2016; Provides Tax Rate Guidance for the Second Half of the Year 2016
July 27, 2016 at 04:05 pm EDT
Share
Fortune Brands Home & Security, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, sales were $1,297.8 million against $1,165.1 million last year. Operating income was $187.7 million against $128.2 million last year. Income from continuing operations before income taxes was $174.2 million against $120.7 million last year. Income from continuing operations, net of tax was $125.1 million against $78.0 million last year. Net income attributable to the company was $125.2 million or $0.80 per diluted share from continuing operations against $79.7 million or $0.48 per diluted share from continuing operations last year. EBITDA before charges/gains was $221.1 million against $175.2 million last year.
For the six months, sales were $2,404.3 million against $2,115.9 million last year. Operating income was $283.2 million against $195.5 million last year. Income from continuing operations before income taxes was $258.2 million against $182.9 million last year. Income from continuing operations, net of tax was $186.1 million against $118.9 million last year. Net income attributable to the company was $186.2 million or $1.18 per diluted share from continuing operations against $119.7 million or $0.73 per diluted share from continuing operations last year. EBITDA before charges/gains was $125.1 million against $78.0 million last year. Net cash provided by operating activities was $165.0 million against $55.4 million last year. Capital expenditures, net of proceeds from asset sales were $74.4 million against $54.2 million last year.
The company increased its expectations for EPS before charges/gains for 2016 to be in the range of $2.70 to $2.78, which compares to 2015 EPS before charges/gains of $2.07. The midpoint of the company's increased EPS outlook represents a $0.19 increase from the previous outlook, with $0.13 from a lower tax rate and $0.06 driven by stronger operating performance. The company expects to generate free cash flow of approximately $400 million for the full year 2016. The company continues to expect full year 2016 sales to increase 10% to 12% compared to 2015.
The company expects a tax rate of approximately 31% in the second half of the year 2016.
Fortune Brands Innovations, Inc. is a home, security and commercial building products company. The Company has three segments. Water Innovations segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposal, predominantly under the Moen, ROHL, Riobel, Victoria+Albert, Aqualisa and Shaws brands. Outdoors segment manufactures and sells fiberglass and steel entry door systems, storm, screen and security doors, composite decking, railing and cladding under the Fiberon brand, urethane millwork under the Fypon brand, and wide-opening exterior door systems and outdoor enclosures under the Solar Innovations brand. Security segment manufactures, sources and distributes locks, safety and security devices, and electronic security products and fire-resistant safes and security containers. The Company, through SpringWell Water Filtration Systems, provides residential whole-home water filtration and water softening solutions via direct-to-consumer channels.
Fortune Brands Home & Security, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016;; Revises Earnings Guidance for the Full Year 2016; Provides Tax Rate Guidance for the Second Half of the Year 2016