Fortune Brands Home & Security, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; Revised Earnings Guidance for the Year 2017
October 25, 2017 at 04:05 pm EDT
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Fortune Brands Home & Security, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported net sales of $1,348.6 million compared to $1,279.0 million a year ago. Operating income was $201.8 million compared to $183.1 million a year ago. Income from continuing operations before income taxes was $189.4 million compared to $170.7 million a year ago. Income from continuing operations, net of tax was $129.6 million compared to $121.9 million a year ago. Net income attributable to company was $129.5 million compared to $123.4 million a year ago. Diluted net income per share was $0.83 compared to $0.77 a year ago.
For the nine months, the company reported net sales were $3,900.8 million compared to $3,683.3 million a year ago. Operating income was $529.1 million compared to $466.3 million a year ago. Income from continuing operations before income taxes was $492.4 million compared to $428.9 million a year ago. Income from continuing operations, net of tax was $347.3 million compared to $308.0 million a year ago. Net income attributable to company was $344.6 million compared to $309.5 million a year ago. Diluted net income per share was $2.22 compared to $1.95 a year ago. Net cash provided by operating activities was $352.6 million compared to $380.6 million a year ago. Capital expenditures were $95.5 million compared to $106.1 million a year ago. Free cash flow was $283.1 million compared to $301.6 million a year ago. Cash flow from operations was $352.6 million compared to $380.6 million a year ago.
For the full year, the company expects to generate free cash flow of approximately $450 million. Cash flow from operations is expected to be in range of $575.0 million and capital expenditures in range of $150.0 million to $155.0 million. For the full year, on a GAAP basis, the Company is targeting diluted EPS from continuing operations to be in the range of $2.99 to $3.04 per share. The Company's 2017 annual outlook continues to be based on a U.S. home products market growth assumption of 6% to 7% and an assumption of 5% to 6% growth for total global market. The Company now expects full-year 2017 sales growth in the range of 6% to 7%, which reflects the negative impact of hurricanes across the segments. The Company also narrowed its full-year 2017 EPS outlook before charges/gains to a range of $3.05 to $3.10, versus a prior range of $3.04 to $3.12.
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 Third Quarter and Nine Months Ended September 30, 2017; Revised Earnings Guidance for the Year 2017