DEERFIELD, Ill. (AP) — Home products maker Fortune Brands Home & Security Inc. said net income rose 9 percent in the second quarter as the housing construction market showed glimmers of a recovery, boosting plumbing product sales.
Overall revenue gains were slight as consumers spent less than expected on home repairs and remodeling. Consumers have held back on big-ticket home projects because of worries about jobs and uncertainty about the global economy.
The maker of Moen faucets, Master locks, and other brands said net income in the April-to-June quarter rose to $47.8 million, or 29 cents per share. That compares with net income of $44.1 million, or 28 cents per share, last year. Revenue rose 5 percent to $935.3 million from $889.7 million last year.
Analyst expected earnings of 29 cents per share and revenue of $958.7 million, according to FactSet.
"We achieved this strong performance as new housing construction showed strong double-digit growth and spending for home repairs and remodeling was uneven during the quarter and somewhat weaker than our expectations," said CEO Chris Klein.
Revenue from plumbing and accessories rose 12 percent. The U.S. wholesale business gained from new construction market growth and strength in international markets, including China.
Revenue from security and storage rose 2 percent, windows and door systems rose 7 percent and kitchen and kitchen and bath cabinetry sales rose 1 percent.
Looking ahead, the company reaffirmed guidance for 2012 for adjusted earnings of 77 cents to 87 cents per share. Analysts expect earnings of 84 cents per share.
Fortune shares rose 60 cents, or 2.9 percent, to close at $21.33.
