Fortune Brands Home & Security, Inc. (NYSE:FBHS) Q2 2018 Earnings Conference Call - Final Transcript

Jul 26, 2018 • 04:30 pm ET


Fortune Brands Home & Security, Inc. (NYSE:FBHS) Q2 2018 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Victoria and I will be your conference operator today. At this time, I would like to welcome everyone to the Fortune Brands Second Quarter 2018 Results Conference Call. After the speakers' remarks there will be a question-and-answer session.

[Operator Instructions]

I would now like to turn the call over to Mr. Brian Lantz, Senior Vice President, Communications and Corporate Administration. You may begin your conference call.

Brian C. Lantz

Good afternoon, everyone, and welcome to the Fortune Brands Home & Security Quarterly Investor Conference Call and Webcast. We're pleased to be here today to provide an update on our progress for the second quarter of 2018. Hopefully, everyone has had a chance to review the news release issued earlier. The news release and the audio replay of the webcast of this call can be found in the investors section of our website.

I want to remind everyone that the forward-looking statements we make on the call today, either in our prepared remarks or in the associated question-and-answer session, are based on current expectations and market outlook and are subject to certain risks and uncertainties that may cause actual results to differ materially from those currently anticipated. These risks are detailed in our various filings with the SEC such as our Annual Report on 10-K. The Company does not undertake to update or revise any forward-looking statements, which speak only to the time at which they are made.

Any references to operating profit, earnings per share or cash flow on today's call will focus on our results on a before charges and gains basis for continuing operations with the exception of cash flow unless otherwise specified.

With me on the call today are Chris Klein, our Chief Executive Officer, and Pat Hallinan, our Chief Financial Officer. Following our prepared remarks, we will allow some time to address questions that you may have.

I will now turn the call over to Chris.

Christopher J. Klein

Thank you, Brian, and thanks to everyone for joining us today. I'm very pleased with our results for the second quarter and feel confident in delivering the strong performance we have targeted for the year. Our teams delivered solid results overall, which was again on plan and met our overall expectations. The momentum inside of our Plumbing and Doors businesses continues to be very strong. Our Cabinet transition is going well and we took concrete actions to accelerate the repositioning of the business.

Across the Company, price increases continue to roll through all segments and are countering the increased material and labor costs we saw in the first half. Our progress in these areas positions us well for stronger operating leverage in the second half of 2018 and into 2019. In addition to our financial results, we successfully executed a number of important actions to set up the business for a stronger second half and longer-term growth. I'll have more to say on these strategic steps in a moment.

Let me first spend some time on our view