Maximizing Long-Term Value
Fortune Brands Home & Security is focused on creating long-term value through both core and incremental growth. Read more to learn about the opportunities.
How we do it
We have driven core growth by gaining market share and focusing on profitable opportunities. We've strengthened our solid business model, which includes:
- Industry-leading brands in attractive categories
- Innovation and operational excellence
- Structural competitive advantages
We consistently outperform the market for our products. From 2011 through 2016, net sales increased more than 70 percent to $5.0 billion, and earnings per share grew nearly fivefold from $0.57 to $2.75.
Potential from core growth
Our home products business mix is driven by U.S. repair & remodel and new construction, both benefitting from an elongated housing recovery. We are well-positioned for continued strong performance as the market returns to a steady state of approximately 1.5 million housing starts and 5 percent to 6 percent repair & remodel growth.
How we do it
We have driven incremental growth by using our strong free cash flow and adding reasonable leverage to our balance sheet.
From 2011 through 2016, Fortune Brands has deployed approximately $2.7 billion through acquisitions - including the acquisitions of Riobel and ROHL plumbing products - as well as through share repurchases and increasing our dividend.
Potential from incremental growth
We intend to continue using our cash flow and balance sheet to drive incremental growth and maximize shareholder value.
We have substantial flexibility to:
- Invest in current businesses.
- Complete strategic acquisitions.
- Repurchase shares and increase our dividend.
For More Information
Information regarding new construction starts and repair & remodel activity is sourced from internal company data and the U.S. Census Bureau.
Because this page contains certain "forward-looking statements," please view our notice on forward-looking statements.