After a slow first quarter, Fortune Brands and Home Security saw a second-quarter 10% year-over-year sales bump. The company also announced that it had acquired Sentry Safe for $117.5 million.
In the second quarter, Fortune Brands reported $1.4 billion in sales, and $136.6 million in operating income before charges and gains — a $20.1 million increase over the second quarter of 2013. The total company’s pre-gains operating income grew by 28%.
Sales also increased across Fortune Brands’ various product segments. The cabinetry division saw a 19% sales increase over the same period in 2013, with a 31% increase in pre-gains operating income. Both its security and storage, as well as its plumbing sales grew 5% over the same quarter in 2013. Its windows and door division saw a 53% year-over-year increase in income.
“Our teams executed well, delivering a solid second quarter as consumer traffic is increasing and demand gradually improved from the soft start to the year,” said Chris Klein, CEO of Fortune Brands. “We continue to gain share and remain on track to deliver strong growth this year.”
As its segments grow, the company’s holdings have as well. The Sentry Safe acquisition, which closed on July 29, will see the Rochester, New York-based safe company merged with Master Lock.
“Sentry Safe’s global brand strength in the adjacent personal safe market enables Master Lock to broaden its product offerings and leverage its iconic brand worldwide," Klein said. “Both companies hold similar competitive advantages in their markets and produce products that protect people’s most valuable assets.”
With the acquisition and its second-quarter growth, the company projects a market growth of 6% to 8%.