Fortune Brands Home & Security, Inc. Reports Unaudited Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Revises Earnings Guidance for the Full Year of 2018
July 26, 2018 at 04:05 pm EDT
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Fortune Brands Home & Security, Inc. reported unaudited earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company's net sales were USD 1,429.0 million against USD 1,365.4 million last year, up by 5% year on year. Operating income was USD 188.6 million against USD 209.2 million last year. Income from continuing operations before income taxes was USD 174.6 million against USD 199.2 million last year. Income from continuing operations, net of tax was USD 129.7 million against USD 140.3 million last year. Net income attributable to the company was USD 129.6 million against USD 137.7 million last year. Basic and diluted earnings per share from continuing operations were USD 0.88 against USD 0.90 a year ago. EBITDA before charges/gains was USD 250.5 million against USD 246.9 million last year. On non-GAAP basis, operating income was USD 209.2 million against USD 212.4 million last year, down 2% or USD 3 million compared to the same quarter last year as inflation was a headwind, as expected. Income from continuing operations before income taxes was USD 195.2 million against USD 202.4 million last year. Income from continuing operations, net of tax was USD 146.7 million against USD 143.3 million last year. Net income attributable to the company was USD 146.6 million against USD 140.7 million last year. Diluted earnings per share from continuing operations were USD 1.00 against USD 0.92 a year ago.
For the six months, the company's net sales were USD 2,683.6 million against USD 2,552.2 million last year. Operating income was USD 308.0 million against USD 320.2 million last year. Income from continuing operations before income taxes was USD 282.1 million against USD 303.0 million last year. Income from continuing operations, net of tax was USD 204.8 million against USD 217.7 million last year. Net income attributable to the company was USD 204.6 million against USD 215.1 million last year. Basic and diluted earnings per share from continuing operations were USD 1.37 against USD 1.39 a year ago. EBITDA before charges/gains was USD 411.1 million against USD 401.5 million last year. On non-GAAP basis, operating income was USD 333.5 million against USD 330.5 million last year. Income from continuing operations before income taxes was USD 307.6 million against USD 313.3 million last year. Income from continuing operations, net of tax was USD 231.7 million against USD 226.8 million last year. Net income attributable to the company was USD 231.5 million against USD 224.2 million last year. Diluted earnings per share from continuing operations were USD 1.55 against USD 1.45 a year ago. Net cash provided by operating activities was USD 137.3 million against USD 171.2 million last year. Capital expenditures were USD 67.2 million against USD 59.5 million last year.
The Company's 2018 annual outlook continues to be based on a U.S. home products market growth assumption of 5% to 7% and an assumption of 5% to 6% growth for the company's total global market. The Company expects full-year 2018 sales growth in the range of 6% to 7%. The Company raised its full-year 2018 EPS outlook before charges/gains, with a new range of USD 3.62 to USD 3.72 versus the prior range of USD 3.58 to USD 3.70. The Company also expects to generate free cash flow of approximately USD 500 - USD 525 million for the full year 2018.
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 Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Revises Earnings Guidance for the Full Year of 2018