Fortune Brands Readjusts its Outlook After Q1 Results

May 1st, 2015 by Editor

Fortune Brands released its first quarter 2015 results recently, which showed “moderate growth,” according to company CEO Chris Klein.

Klein says the results were “as we expected,” but the teams delivered “profit growth that was right on plan … We continue to anticipate accelerating new construction activity in the second half of the year. Based on that market assumption and solid execution of our plan in the first quarter, we are maintaining our full year profit outlook, while reducing the high end of our sales outlook due to the impact of currency.”

For the first quarter of 2015, sales were $951 million, an increase of 7 percent over the first quarter of 2014. Earnings per share were $0.25, compared to $0.27 in the prior-year quarter. EPS before charges/gains were $0.28, compared to $0.27 the same quarter last year. Operating income was $67.3 million, compared to $69.3 million in the prior-year quarter. Operating income before charges/gains was $73.2 million, compared to $70.1 million the same quarter last year.

Of note, door sales were up 5 percent with growth in both the wholesale and retail channels.

The company’s 2015 annual outlook is based on a U.S. home products market growth assumption of 6 to 8 percent. Based on the company’s expectation to continue outperforming the market, the company reduced full-year 2015 net sales growth from a range of 9 to 11 percent to a range of 9 to 10.5 percent to “reflect the impact of currency.”

“The first quarter home products market performed as we expected. We plan for some improvement in the second quarter,” says Klein. “Due to the positive signs we are seeing in April and the natural lag for our businesses, we continue to look for the strongest market growth in the second half of the year.”

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