Revenue during the quarter grew 3.25 percent to $1,279 million from $1,238.80 million in the previous year period. Gross margin for the quarter expanded 230 basis points over the previous year period to 37.37 percent. Total expenses were 85.68 percent of quarterly revenues, down from 87.06 percent for the same period last year. This has led to an improvement of 138 basis points in operating margin to 14.32 percent.

Operating income for the quarter was $183.10 million, compared with $160.30 million in the previous year period.

However, the adjusted operating income for the quarter stood at $188.70 million compared to $167.70 million in the prior year period. At the same time, adjusted operating margin improved 122 basis points in the quarter to 14.75 percent from 13.54 percent in the last year period.

"In the third quarter, sales grew across our company despite softer repair and remodel activity, challenging prior year comparisons, and select channel inventory reductions," said Chris Klein, chief executive officer, Fortune Brands. "Importantly, our teams delivered strong profit performance across all segments. Since late September and through October we have seen order patterns improve. Based on the current pace of market growth and our solid execution, we continue to expect to deliver strong full-year results."

The company has spent $334.30 million cash to meet investing activities during the nine month period as against cash outgo of $725 million in the last year period.

The company has spent $9.50 million cash to carry out financing activities during the nine month period as against cash inflow of $616.80 million in the last year period.

Cash and cash equivalents stood at $278.60 million as on Sep. 30, 2016, down 20.54 percent or $72 million from $350.60 million on Sep. 30, 2015.

Working capital declines
Fortune Brands Home Security has witnessed a decline in the working capital over the last year. It stood at $763 million as at Sep. 30, 2016, down 9.78 percent or $82.70 million from $845.70 million on Sep. 30, 2015. Current ratio was at 1.98 as on Sep. 30, 2016, down from 2.09 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 32 days for the quarter from 64 days for the last year period. Days sales outstanding were almost stable at 41 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 32 days for the quarter compared with 62 days for the previous year period. At the same time, days payable outstanding was almost stable at 41 days for the quarter, when compared with the previous year period.