Recently, the House products Market has been growing in an amazing rate and Fortune Brands has taken a quick bite from these exemplary growth. Fortune Brands have managed to go with the flow and execute their plans into gaining more sales this early time of the year – acquiring a stunning improvement of 7% in sales that reached up to $951 Million. This was during the ‘prior-year’ quarter and the profit was definitely something that the CEO of Fortune Brand, Chris Klein, was proud of.
The company added that they expect a growth that will reach the boundary of 9% – 10.5% without adding the impact that the Acquisition of Norcraft Bathroom and Kitchen Cabinetry may bring to them. He also stated that they expected only a medium growth for the first quarter of the year and the fact that they brought profit home, is undoubtedly an achievement. The sales managed to grow, but the income for operation decreased from prior-year quarter’s $69.3 Million to $67.3 Million.
On the flip side of the coin, the sales for their Cabinets have only managed to reach equal platform with the sales last year. The sales from doors have also managed to gain a 5% growth with its retail channels and wholesales.
They are also waiting for the time when they would acquire the Norcraft Bathroom and Kitchen Cabinetry that they claimed to be the game-changer for their Cabinets which will lead it to the same path of the growing market for home products.
The Acquisition of Norcraft – a public manufacturer, to Fortune Brands was just recently announced. They were picked by Fortune’s CEO because of their strong points with their channels of dealers and powerful business management capabilities. Klein also added that they are aiming to mimic their successful sales with their combination to Norcraft. He also stated that this will be a great leverage that could add $450 Million to their total revenue only after a few years which will definitely be a feat to behold.
After the pending acquisition and its completion, the Norcraft will be handed to the cabinet business owned by the Fortune Brand.