DEERFIELD, Ill.--(BUSINESS WIRE)--
Fortune Brands Home & Security, Inc. (FBHS), an industry-leading home and security products company, today announced results for the third quarter of 2012.
Net sales were $909 million, an increase of 7 percent over the third quarter of 2011. Diluted earnings per share were $0.24 vs. $0.01 in the prior year quarter. Net charges were $0.14 lower than the third quarter of 2011.
Diluted EPS before charges/gains was $0.29 vs. $0.20 in the prior year quarter, a 45 percent increase.
Operating income was $60.6 million, an increase of $39.8 million over the prior-year quarter. Operating income before charges/gains was $72.9 million, up 34 percent year-over-year.
We had another very good quarter. We had broad strength in our businesses as expected, with sales growth in each of our segments, said Chris Klein, chief executive officer, Fortune Brands Home & Security, Inc. We achieved this success as the market for our products continued to improve, with double-digit growth in new housing construction and moderate improvement in spending for home repairs and remodeling.
For each segment in the third quarter 2012, compared to the prior-year quarter:
Our Cabinet sales grew nicely in the quarter, and our continued discipline on promotions coupled with our improving supply chain efficiencies resulted in a sharp year-over-year increase in operating income before charges/gains. Our Plumbing segment continued to capitalize on strength in the new construction market, thanks to our market-leading share with builders and wholesalers. Windows & Door segment sales benefited from the broadening of our distribution in doors and our strength in new construction, and profits improved as expected. Broader product placement, innovation and continued demand for global safety solutions led to gains in the Security & Storage segment, Klein said.
This was another successful quarter for us. Our results reflect the growth in new construction, thanks to the work weve done over the last several years to position ourselves for a recovering market. Our teams are executing well and delivering results that are meeting or exceeding expectations we laid out for ourselves one year ago when we spun off from Fortune Brands. It has been an exciting first year as an independent company, and we believe our solid capital structure, strong brands, compelling product innovation and operational excellence will enable us to perform well in the future, Klein said.
We improved upon our sound balance sheet, said Lee Wyatt, senior vice president and chief financial officer. As of September 30, 2012, cash was $216 million, and debt was down to $345 million with nothing outstanding on our $650 million revolving credit facility. Our net debt-to-EBITDA before charges/gains ratio is 0.4 times.
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