Fortune Brands Home & Security posted a net income $20.4 million during the third quarter, down 26% from the same period last year, the company announced Wednesday. Net sales for the company, which until Oct. 4 traded as the building products unit of Fortune Brands, grew 4% to $848 million. Operating income for the quarter was down 24% to $49.4 million.
Fortune Brands Home & Security was part of the split that created both it and Beam, which is Fortune Brands' former spirits business. The company has technically been a stand-alone entity since Jan. 1, 2010, at which point intercompany borrowing at Fortune Brands ceased.
The Deerfield, Ill.-based manufacturer's kitchen and bath cabinetry unit, which features brands such as Aristokraft and KitchenCraft, posted an operating income of $7.8 million, down 20% from 2010's third quarter. Segment sales, meanwhile, grew by $10 million to hit $310.7 million.
The plumbing and accessories segment saw operating income increase 23% to $38.6 million, while sales rose 10% to $249.1 million. The plumbing unit features the brand Moen.
Sales in advanced material windows and door systems, of which the Simonton brand is a part, fell just over $1 million to $148.2 million, while operating income slipped into the red with a $300,000 loss. The company's security and storage unit, which manufactures the Master Lock and American Lock brands, posted a 26% drop in operating income to finish at $20 million. Sales for the unit grew by almost $4 million to $140 million.
"The third quarter home products market was weaker than earlier estimates, and that impacted the big ticket, discretionary products in our cabinetry and window and door segments," said CEO Christopher Klein. "But our plumbing and security and storage segments, which are generally more stable, generated strong sales and operating margins."