Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

FORTUNE BRANDS HOME & SECURITY, INC.

(FBHS)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Fortune Brands Home & Security : REPORTS EXCEPTIONAL SALES AND PROFIT GROWTH IN 1Q 2021; INCREASES 2021 ANNUAL OUTLOOK BASED ON CONTINUED EXPECTED OUTPERFORMANCE IN A STRONG HOUSING MARKET

04/30/2021 | 09:45am EDT

FORTUNE BRANDS REPORTS EXCEPTIONAL SALES AND PROFIT GROWTH IN 1Q 2021; INCREASES 2021 ANNUAL OUTLOOK BASED ON CONTINUED EXPECTED OUTPERFORMANCE IN A STRONG HOUSING MARKET.

Highlights from operations:

Share gains, margin expansion and outstanding operational performance in a fundamentally strong end market drove exceptional growth across the Company

1Q 2021 sales increased approximately 26 percent to $1.8 billion year-over-year

1Q 2021 EPS increased 64 percent to $1.26 per share versus the prior-year-quarter; EPS before charges / gains increased 68 percent year-over-year to $1.36

Company increases 2021 full year financial outlook on continued share gains in a strong demand environment

DEERFIELD, Ill.- Fortune Brands Home & Security, Inc. (NYSE: FBHS, the 'Company', or 'Fortune Brands'), an industry-leading home and security products company, today announced first quarter 2021 results.

'Our teams again delivered exceptional above-market results,' said Nicholas Fink, chief executive officer, Fortune Brands. 'We continue to outperform in an accelerating home products market at a time when the importance of the home has never been more critical. I am proud of our teams' effort. We continued to make safety our first priority while working hard to serve our customers. Our upwardly revised outlook reflects our teams' continued outperformance and ability to capture greater market share and profit opportunities in an increasingly strong market for our products. In addition to driving top-line growth, our Fortune Brands Advantage initiatives are delivering to offset inflation and supply chain headwinds while also freeing up additional investment dollars for our most critical growth priorities. With our attractive categories and strong channel positions, increased investments, and exceptional management team, we are well positioned to drive increasing value for our stakeholders through this period of long-term housing expansion and beyond.'

First Quarter 2021

For the first quarter of 2021, sales were $1.8 billion, an increase of 26 percent over the first quarter of 2020. Earnings per share were $1.26, compared to $0.77 in the prior-year quarter. EPS before charges / gains were $1.36, compared to $0.81 in the prior-year quarter, an increase of 68 percent. Operating income was $248.4 million, compared to $155.0 million in the prior-year quarter. Operating income before charges / gains was $261.8 million, compared to $169.8 million in the prior-year quarter, up 54 percent. Operating margin was 14.0 percent, compared to 11.0 percent in the first quarter of 2020. Operating margin before charges / gains was 14.8 percent, up 270 basis points over the first quarter of 2020.

For each segment in the first quarter of 2021, compared to the prior-year quarter:

Plumbing sales increased 33 percent, or 30 percent excluding FX, led by strong performance across the business. Operating margin before charges / gains was especially strong at 24.0 percent.

Cabinets sales increased 11 percent, driven by strong growth across all price points. Operating margin before charges / gains was 10.8 percent, an increase of 180 basis points.

Outdoors & Security sales increased 47 percent, driven by the addition of LARSON and strong double-digit sales growth of composite decking and doors. Excluding LARSON, organic sales increased 15 percent. Operating margin before charges / gains was 13.5 percent, an increase of 310 basis points.

Balance Sheet and Liquidity

At the end of the quarter, net debt was $2.3 billion and net debt to EBITDA was 2.1x. The Company had $356 million in cash and $755 million of availability under its revolving credit facilities.

Update to Annual Outlook for 2021

The Company expects to continue outperforming a fundamentally strong housing market. The Company now anticipates delivering full-year sales growth in the range of 20 percent to 22 percent, or 13 percent to 15 percent excluding the LARSON acquisition. This reflects the Company's revised assumptions of a global home products market now expanding by 9 percent to 11 percent, including growth in the U.S. home products market of approximately 10 percent to 12 percent.

The Company now expects EPS before charges / gains for the full year to be in the range of $5.45 to $5.65, which would be an increase at the midpoint of 32 percent versus a year ago.

For 2021, the Company expects to generate free cash flow of approximately $650 to $700 million.

The Company has posted an updated investor presentation on the Fortune Brands website (www.fbhs.com), which includes updated three-year financial targets. Additionally, the Company's new 2020 ESG report is also available on the Company's website.

'The U.S. housing market today is considerably underbuilt, and consumers are investing in their homes at historic levels,' said Patrick Hallinan, chief financial officer, Fortune Brands. 'We expect the demand for housing will exceed supply for a number of years, and in this environment, we expect to continue accelerating our rate of value creation. We are confident in our ability to navigate inflationary headwinds, while still investing in innovation, brands, and growth capabilities. We expect to translate this growth into strong cash generation and will be working to create additional value through thoughtful capital deployment.'

About Fortune Brands

Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, IL., is a Fortune 500 company, part of the S&P 500 Index and a leader in the home products industry. With trusted brands and market leadership positions in each of its three operating segments, Plumbing, Outdoors & Security, and Cabinets, Fortune Brands' 27,500 associates work with a purpose to fulfill the dreams of home.

The Company's growing portfolio of complementary businesses and innovative brands include Moen and the House of Rohl within the Global Plumbing Group; outdoor living and security products from Therma-Tru, LARSON, Fiberon, Master Lock and SentrySafe; and MasterBrand Cabinets' wide-ranging offerings from Mantra, Diamond, Omega and many more. Visit www.FBHS.com to learn more about FBHS, its brands and how the Company is accelerating its environmental, social and governance (ESG) commitments.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains certain 'forward-looking statements' regarding general business strategies, market potential, future financial performance, the potential of our brands and the housing market, and other matters. Statements preceded by, followed by or that otherwise include the words 'believes', 'positioned', 'expects', 'estimates', 'plans', 'look to', 'outlook', and similar expressions or future or conditional verbs such as 'will', 'should', 'would', 'may' and 'could' are generally forward-looking in nature and not historical facts. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management. Although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those indicated in such statements. Important factors that could affect performance and cause results to differ materially from management's expectations, or could affect the Company's ability to achieve its strategic goals, include the uncertainties relating to the impact of COVID-19 on the Company's business, operations and employees and the other factors discussed in our securities filings, including in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission. The forward-looking statements included in this release are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this release.

Use of Non-GAAP Financial Information

This press release includes measures not derived in accordance with generally accepted accounting principles ('GAAP'), such as diluted earnings per share before charges / gains, operating income before charges / gains, net sales excluding impact of FX, net sales excluding LARSON net sales, operating margin before charges / gains, EBITDA before charges / gains, net debt, net debt to EBITDA before charges / gains, and free cash flow. These measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the most closely comparable GAAP measures, and reasons for the Company's use of these measures, are presented in the attached pages.

(C) 2021 Electronic News Publishing, source ENP Newswire

All news about FORTUNE BRANDS HOME & SECURITY, INC.
06/02INSIDER TRENDS : Fortune Brands Home & Security Insider Extends 90-Day Selling T..
MT
05/27FORTUNE BRANDS HOME & SECURITY, INC. : Ex-dividend day for
FA
05/06FORTUNE BRANDS HOME & SECURITY  : FBHS) Insider Makes Significant Share Sale
MT
05/05FORTUNE BRANDS HOME & SECURITY, INC. : Submission of Matters to a Vote of Securi..
AQ
05/05INSIDER TRENDS : Fortune Brands Home & Security Sees 90 Days of Insider Buying T..
MT
05/04FORTUNE BRANDS HOME & SECURITY  : Management's discussion and analysis of
AQ
05/04FORTUNE BRANDS HOME & SECURITY  : KeyBanc Adjusts Price Target on Fortune Brands..
MT
05/03FORTUNE BRANDS HOME & SECURITY  : Declares Quarterly Dividend
BU
04/30FORTUNE BRANDS HOME & SECURITY  : Truist Securities Adjusts Fortune Brands Home ..
MT
04/30FORTUNE BRANDS HOME & SECURITY  : Reports exceptional sales and profit growth in..
AQ
More news
Financials (USD)
Sales 2021 7 384 M - -
Net income 2021 781 M - -
Net Debt 2021 1 808 M - -
P/E ratio 2021 17,7x
Yield 2021 1,05%
Capitalization 13 678 M 13 678 M -
EV / Sales 2021 2,10x
EV / Sales 2022 1,93x
Nbr of Employees 27 505
Free-Float 74,7%
Chart FORTUNE BRANDS HOME & SECURITY, INC.
Duration : Period :
Fortune Brands Home & Security, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FORTUNE BRANDS HOME & SECURITY, INC.
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 18
Average target price 114,92 $
Last Close Price 98,69 $
Spread / Highest target 29,7%
Spread / Average Target 16,4%
Spread / Lowest Target -14,9%
EPS Revisions
Managers and Directors
NameTitle
Nicholas I. Fink Chief Executive Officer & Director
Patrick D. Hallinan Chief Financial Officer & Senior Vice President
Susan Saltzbart Kilsby Non-Executive Chairman
Marty Thomas Senior VP-Operations & Supply Chain Strategy
David M. Thomas Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
FORTUNE BRANDS HOME & SECURITY, INC.15.13%13 678
SAINT-GOBAIN51.36%36 389
ASSA ABLOY AB27.90%34 562
XINYI GLASS HOLDINGS LIMITED39.26%15 744
MASCO CORPORATION6.95%14 610
BEIJING NEW BUILDING MATERIALS PUBLIC LIMITED COMPANY13.26%11 977