AMERICAN BRANDS SECOND QUARTER E.P.S. UP 10% BEFORE 1995 EXTRAORDINARY CHARGE; EXPECTS CONTINUED STRONG E.P.S. GROWTH.OLD GREENWICH Old Greenwich is a neighborhood or section in the southeast corner of Greenwich in Fairfield County, Connecticut, United States. The Old Greenwich Railroad Station serves commuters in the neighborhood. , Conn.--(BUSINESS WIRE)--July 23, 1996 -- American Brands, Inc. (NYSE NYSE See: New York Stock Exchange : AMB AMB Ambient AMB Ambassador AMB Amber AMB Ambulance AMB Associação Médica Brasileira (Brazil) AMB Ambulatory AMB Advanced Memory Buffer (FBDIMM control unit on DRAM) ) today announced that earnings per Common share rose 10% to 69 cents for the quarter ended June 30, 1996, compared with 63 cents in the second quarter of 1995. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of rose 10% to 68 cents. For the six months, earnings per share were $1.39, up 13% from $1.23 last year. Fully diluted earnings per share rose 12% to $1.36. These comparisons exclude extraordinary charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the retirement of debt of 1 cent per share ($3 million) in the second quarter of 1995 and 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ($10 million) in the first quarter of 1996. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , excluding businesses sold in 1995, rose 3% to $2.5 billion in the second quarter and 6% to $5.2 billion for the six months. Operating company operating company A business that engages in transactions with outsiders. contribution, excluding the businesses sold, was up 9% in the quarter and 7% year-to- date. Last year, U.K. retailing and housewares house·wares pl.n. Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. operations, which generated substantial sales, were sold. Including the disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. businesses, sales declined 4% and 3% in the quarter and six months, respectively, and contribution was up 8% and 6%, respectively. Income before the extraordinary charges increased 2% and 4% in the quarter and six months, respectively. Including the extraordinary charge, net income rose 5% and 1%, respectively. Fluctuations in exchange rates for foreign currencies, primarily the British pound, adversely affected sales, income before extraordinary items and E.P.S. by $66 million, $2 million and 1 cent, respectively, for the quarter, and by $127 million, $6 million and 3 cents, respectively, for the six months. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , a 7% decline in average primary Common shares outstanding (9% fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) benefited E.P.S. by 5 cents in the quarter. For the six months, an 8% decline in average primary shares (9% fully diluted) benefited primary and fully diluted E.P.S. by 11 and 13 cents, respectively. Chairman and Chief Executive Officer Thomas C. Hays Hays, city (1990 pop. 17,767), seat of Ellis co., W central Kans.; inc. 1885. It is a rail, trade, and medical center in a grain, cattle, and oil area. Manufactures include electronic equipment, plastics, feeds, medical supplies, aircraft, and motorcycles. noted that "we again achieved our long-term growth goal, with the 10% E.P.S. gain in the quarter giving us a 13% gain for the six months. These gains reflect the strength of our powerful consumer brands and financial resources. Sales and operating company contribution for ongoing operations were records in both the quarter and six months, backed by broad-based gains. In the quarter, contribution increases were reported in every category. "We have continued to move aggressively in 1996 to create and deliver value to our shareholders, with a significant acquisition, vigorous brand building and substantial share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. ." The January acquisition of Cobra Golf, in combination with the Titleist and Foot-Joy brands, has created the number 1 powerhouse A fourth-generation language from Cognos that was introduced in the late 1970s for midrange computers. It supports both character-oriented, terminal-based applications as well as Windows clients. Applications developed under PowerHouse can be imported into Cognos' Axiant client/server environment. in golf. Together, these superstar brands achieved a clean sweep clean sweep n to make a clean sweep (SPORT) → arrasar, barrer clean sweep n to make a clean sweep (Sport) → rafler tous les prix at last month's U.S. Open The term U.S. Open is applied to "open" United States national championships in a particular sport, in which anybody, amateur or professional, American or non-American may compete. These include:
In Music:
n. 1. A size that is larger than usual. 2. An oversize article or object. adj. o·ver·size also o·ver·sized Larger in size than usual or necessary. Adj. 1. irons, a Titleist Bulls Eye putter, the Titleist Professional ball, Foot-Joy shoes and a Foot-Joy glove glove, hand covering with a separate sheath for each finger. The earliest gloves, relics of the cave dwellers, closely resembled bags. Reaching to the elbow, they were most probably worn solely for protection and warmth. . Hays noted that "we expect these powerful golf brands to produce excellent results for golfers and strong growth for our shareholders in the years ahead. "We have also invested over $500 million this year," he added, "to reduce fully diluted shares by nearly 11 million, or 6%. This continues the aggressive steps initiated last year, when we reduced fully diluted shares by more than 14%. Thus far in 1996, we have repurchased 8 million shares of a previously announced 10 million share repurchase authorization The right or permission to use a system resource; the process of granting access. See access control. . The March redemption of a convertible issue reduced fully diluted shares by an additional 2.8 million. "Even with the Cobra acquisition and substantial share reductions, our total-debt-to-capital ratio at the end of June remained at a very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 39%, giving us considerable flexibility for the future. "Most fundamentally, our array of great consumer brands underlies our optimism. Eighteen brands generate annual sales exceeding $100 million each. Our companies are investing substantially in marketing, customer service and improved productivity. These investments are enhancing the leadership of these and our other great brands in markets around the world, and are fostering the development of many promising and exciting new products. We are deploying this powerful brand portfolio and our tremendous financial resources to achieve our growth goal and delight our shareholders." Outlook "Looking to the third quarter and the remainder of 1996," Hays stated, "we expect continued strong E.P.S. growth in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite challenging economic and competitive conditions in our principal markets. Our expectation for 1996 as well as our long- term goal -- assuming exchange rate stability and a satisfactory economic and pricing environment -- is to generate E.P.S. growth in the range of 10%." Our 1996 growth expectation excludes one-time items: a third quarter 1995 `gain on disposal of businesses, net' totaling $20 million, or 10 cents per share (9 cents fully diluted), and a fourth quarter 1995 pre-tax charge of $17.8 million, or 6 cents per share, in connection with the reorganization of distilled spirits. With regard to the dividend, Hays noted that the dividend paid per share has increased for 28 consecutive years. "Even though the payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. is still high," he said, "the possibility of a modest increase this year continues to be a matter of thoughtful consideration for our Board." Hays noted that American Brands has accomplished a massive restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , focusing on brands that are leaders in their categories. As part of that restructuring, the Company sold The American Tobacco Company The American Tobacco Company was founded in 1890 by J. B. Duke as a merger between a number of tobacco manufacturers including Allen and Ginter and Goodwin & Company. The company was one of the original 12 members of the Dow Jones Industrial Average in 1896. and has been indemnified by Brown & Williamson and American Tobacco against any pending and future product liability matters relating to American Tobacco's business. With regard to the international tobacco brands of U.K.-based Gallaher Limited, Hays remarked that "we were pleased by last week's announcement by the Legal Aid Board for England and Wales England and Wales are both constituent countries of the United Kingdom, that together share a single legal system: English law. Legislatively, England and Wales are treated as a single unit (see State (law)) for the conflict of laws. that it has denied an application on behalf of some 200 potential plaintiffs for legal aid to allow smoking-related proceedings to be brought against cigarette manufacturers there. "Overall," he said, "we are making solid progress in moving towards our vision of being recognized as one of the most successful consumer products companies in the world." Brand Highlights :::International Tobacco::: Gallaher, the U.K. tobacco market leader, had another fine quarter, with a 5% contribution increase in sterling (1% in dollars) and a gain in U.K. cigarette market share. Cigarette unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. were up 1.9% for the six months in the U.K., with a strong first quarter increase more than offsetting a 6.9% second quarter decline. Quarterly comparisons were affected by a shift in trade buying patterns. Particularly strong year-to- date performances were achieved by Benson and Hedges Superkings (+6%), Silk Cut Silk Cut is brand of low tar cigarette produced by the Gallaher Group. The packaging is characterised by a distinctive stark white packet with the brand name in a purple square. Tobacco only makes up 75% of the filling; the rest is Cytrel. Ultra Low (+8%) and Mayfair (+66%). Sovereign King Size from Benson and Hedges was launched at the beginning of March and, after just four months, achieved a 1.2% share of the total U.K. cigarette sales to consumers and 4% of the low-price sector. Gallaher's estimated overall share of U.K. consumer sales has improved during 1996. The estimated share for June of 39.4% was the highest since April 1995. While holding share in the very profitable premium sector, Gallaher's brands also achieved strong gains in the growing low-price sector. Gallaher's share of the premium sector remained steady at around 54%, reflecting the continued success of the Gratis gift program for Benson and Hedges. The premium sector represented about 49% of the total U.K. market for the half year, compared with 50.8% a year earlier. With the strong launch of Sovereign and excellent growth for Mayfair, Gallaher's share of the low-price sector has risen sharply from 6.5% in the fourth quarter of 1995 to 8% in the first quarter and about 12% in the latest quarter. The low-price sector has grown to over 27% of the total market for the six months from around 24% a year earlier. Export volumes were about flat for the six months, with a 12% gain in continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. offset by a decline in shipments to the former Soviet Union (FSU FSU Florida State University FSU Former Soviet Union FSU Ferris State University FSU Fayetteville State University (North Carolina) FSU Frostburg State University FSU Finance Sector Union ). Sales of Benson and Hedges American Blend, which was introduced in France early this year, have been encouraging, and Gallaher is exploring opportunities for the brand in other markets. Shipments to the FSU fell sharply in the second quarter, due largely to market uncertainty prior to the Russian Presidential election, following a strong first quarter increase. In the Republic of Ireland, where it is the market leader, Gallaher achieved another record quarter, with sales, contribution and market share all showing excellent growth. Despite the market trend in the U.K. to lower price cigarettes, Gallaher's operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: (excluding excise taxes excise taxes, governmental levies on specific goods produced and consumed inside a country. They differ from tariffs, which usually apply only to foreign-made goods, and from sales taxes, which typically apply to all commodities other than those specifically exempted. ) increased in both the quarter and six months, reflecting price increases and effective cost control. We expect continued solid contribution growth in sterling and very strong cash flow from Gallaher's brands for the full year. :::Distilled Spirits:: Contribution from the distilled spirits brands was up 1% in both the quarter and first half. These brands are now under a single worldwide management structure, JBB JBB Joint Base Balad (Iraq) JBB John Benjamin Band Worldwide, and, in connection with that integration, an extra month of operations from Whyte & Mackay is included in both periods. While this benefited second quarter and first half comparisons, it will have an immaterial Not essential or necessary; not important or pertinent; not decisive; of no substantial consequence; without weight; of no material significance. immaterial adj. impact on full year results. Sales were up in both periods, reflecting not only the additional month at Whyte & Mackay but also the positive impact of price increases, volume increases in certain markets and new product introductions. Worldwide case volume increased 6% in the quarter and 3% for the six months, reflecting the additional month at Whyte & Mackay. Volume increases in international markets offset a decline in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Even excluding the additional month, international volume was modestly ahead for the quarter and six months and mostly offset lower volumes in North America. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. margins are being enhanced by the introduction of high margin products and aggressive price increases on key products, including Jim Beam Jim Beam is a brand of bourbon whiskey, distilled in Clermont, Kentucky. This brand of whiskey has been distilled since 1795. The Jim Beam brand is owned by Beam Global Spirits & Wine, which is in turn owned by holding company Fortune Brands. , the number one bourbon Bourbon (b  rbôN`), European royal family, originally of France; a cadet branch of the Capetian dynasty. in the world, and DeKuyper,
America's leading cordial cordial: see liqueur. brand. These steps are helping to fund
further brand-building programs. For the six months, marketing
investment was up 18% compared with a year ago.After Shock, the highly successful cinnamon cinnamon, name for trees and shrubs of the genus Cinnamomum of the family Lauraceae (laurel family). Cinnamon spice comes chiefly from the Sri Lankan cinnamon (C. zeylanicum), now cultivated in several tropical regions. liqueur liqueur (lĭkûr`), strong alcoholic beverage made of almost neutral spirits, flavored with herb mixtures, fruits, or other materials, and usually sweetened. The name derives from the Latin word to melt. introduced last year, continued to enjoy excellent consumer acceptance. Avalanche avalanche, rapidly descending large mass of snow, ice, soil, rock, or mixtures of these materials, sliding or falling in response to the force of gravity. Avalanches, which are natural forms of erosion and often seasonal, are usually classified by their content such Blue, a new peppermint peppermint: see mint. peppermint Strongly aromatic perennial herb (Mentha piperita, mint family), source of a widely used flavouring. Native to Europe and Asia, it has been naturalized in North America. liqueur, was introduced in the second quarter and has also received outstanding trade acceptance. Results also benefited from the introduction of Cheri-Beri Pucker puck·er v. puck·ered, puck·er·ing, puck·ers v.tr. To gather into small wrinkles or folds: puckered my lips; puckered the curtains. v.intr. and Grape Pucker, which are sweet-and-sour fruit flavored schnapps schnapps n. pl. schnapps Any of various strong dry liquors, such as a strong Dutch gin. [German Schnaps, mouthful, schnapps, from Low German snaps, from additions to the DeKuyper cordial line. Largely as a result of these introductions, overall DeKuyper volumes were up strongly in both periods. Internationally, strong profit growth was achieved once again in Australia, where Jim Beam is the top spirit brand. Overall international profitability trailed last year's in both periods as a result of higher spending to support the Whyte & Mackay branded products in the U.K. Volume and profit from the U.K.-based private label business exceeded last year's in both periods, even excluding the additional month's results. With ongoing efforts to improve margins on existing products and to introduce new, higher margin products, we continue to expect a small increase in distilled spirits contribution in 1996, even after adding back the one-time $17.8 million charge taken in the fourth quarter of 1995. :::Hardware and Home Improvement Products::: The hardware and home improvement brands achieved record sales, up 7%, in the quarter. Contribution was up 3%, with a record for Aristokraft, which is number two in kitchen and bath cabinets, and strong performances at Moen, the leader in North American faucets, and Waterloo Waterloo, town, Belgium Waterloo (vä`tərlō), commune (1991 pop. 27,860), Walloon Brabant prov., central Belgium, near Brussels. The battle of Waterloo (see Waterloo campaign) was fought just south of there on June 18, 1815. , the leader in tool storage. Master Lock was negatively impacted by the timing of back-to- school shipments and weakness in mass merchants, which are becoming less committed to the hardware category and, particularly, to premium-priced hardware products. Net income increased substantially more than contribution, benefiting from aggressive asset management. Inventories were down 12% from a year ago. The Decora line of semi-custom cabinets continues to set monthly sales records as consumers take advantage of the exceptional value offered in comparison to more expensive custom cabinets. A joint venture to produce Moen faucets for the huge Chinese market started production in January. Sales in China have exceeded expectations, backed by a growing presence in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Guangzhou, Beijing and Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. . We anticipate strong contribution growth from these brands in the third quarter, with results benefiting from the strength in the housing market. We are hopeful for solid growth for the full year, depending on market and competitive conditions. :::Office Products::: ACCO ACCO American College of Chiropractic Orthopedists ACCO Association of County Commissioners of Oklahoma ACCo American Cyanamid Company ACCO Adenoid Cystic Carcinoma Organization ACCO American Clip Company ACCO Assistant Central Control Officer , the world leader in office supplies Office supplies is the generic term that refers to all supplies regularly used in offices by businesses and other organizations, from private citizens to governments, who works with the collection, refinement, and output of information (colloquially referred to as "paper work"). , posted another excellent quarter. Sales were up 5% to a record, buoyed by increases in both North American and international markets. Contribution was up 13%. Excluding the 1995 divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of an office furniture operation, adverse currency translation and other factors, sales were up 10%, and contribution was up 9%. Particularly strong growth was achieved in North America, with comparable sales up 16%. Growth accelerated as the quarter progressed, helped by a strong back-to-school sell-in. International results were especially robust in Australia, where ACCO is becoming a primary supplier to the consolidating customer base. Locally owned superstores This is a list of superstores by country. Multi-national
Raw material costs have generally stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. and, in some instances, softened soft·en v. soft·ened, soft·en·ing, soft·ens v.tr. 1. To make soft or softer. 2. To undermine or reduce the strength, morale, or resistance of. 3. , compared with significant increases during 1995, though there is still upward pressure in selected categories. Reflecting continued emphasis on improving return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). , inventories are now down 15% from a year ago. ACCO has been achieving sustained growth in contribution. With their superior customer service, strong international presence, excellent position with a consolidating customer base and streamlined operating structure, we expect continued strong performance and another excellent year. :::Golf::: Sales and contribution surged 37% and 53%, respectively, reflecting the addition of Cobra, as well as continued excellent performance by the Titleist, Pinnacle pinnacle (pĭn`ĭkəl), minor architectural motif of vertical tapering shape, usually crowning a pier, buttress, or gable. Although sometimes it appears in Renaissance design, as in the Certosa di Pavia, it is almost exclusively a medieval and Foot-Joy brands. Golf products generated 16% of American Brands' consolidated contribution in the first six months, compared with 11% a year ago. All brands made excellent progress. Golf ball unit sales were up 10% through mid-year, with Titleist continuing to generate outstanding marketplace momentum. Titleist remains, overwhelmingly, the #1 ball in golf with more tour players, more wins and money won than all other golf balls combined. In men's professional golf, Titleist has 64 wins on the worldwide tours, more than four times its nearest competitor. At the U.S. Open Championship, Titleist was the ball of choice of 124 of the 156 contestants, over 79% of the field. The new and revolutionary Titleist Professional golf ball and the new Titleist HP2 ball have each posted an impressive array of tournament wins. Titleist golf club sales were up solidly on the strength of a 13% increase in DCI (Display Control Interface) An Intel/Microsoft programming interface for full-motion video and games in Windows. It allowed applications to take advantage of video accelerator features built into the display adapter. units. The DCI iron is the number 1 iron with PGA (1) (Professional Graphics Adapter) An early IBM PC display standard for 3D processing with 640x480x256 resolution. It was not widely used. (2) (Programmable Gate Array) See gate array and FPGA. club professionals, and Titleist was the third most popular iron at the U.S. Open. Titleist by Scotty Cameron Scotty Cameron (1962—) is an American golf club maker primarily known for creating putters. Scotty was born in Glendale, California on November 8th, 1962. He later moved to Huntington Beach, where he attended Edison High School. putters have continued to post strong acceptance on the tour, and putter unit sales were up 54% through mid-year. Cobra, the leader in oversize irons, announced plans this past week to introduce in September the next generation of King Cobra oversize irons. Building on a more than four-year design endeavor, Cobra is ready to launch a superior iron that plays better, feels better, and creates longer, straighter golf shots 30 minute news-magazine style golf program on Comcast Sportsnet Philadelphia. The program airs Sundays at 6:00PM with repeats Sundays at 5:00AM. Hosts
The curve described by a body moving through space, as of a meteor through the atmosphere, a planet around the Sun, a projectile fired from a gun, or a rocket in flight. , distance and the best feel. The already strong demand for the King Cobra Ti titanium woods, introduced early this year, surged following Steve Jones' win at the U.S. Open. More than 100,000 titanium clubs have now been shipped. Earlier this month, Cobra announced that the in- house titanium finishing operation had added 75 employees and was running three shifts, six days a week, to meet the tremendous demand. With this critical process in house, Cobra is achieving significant savings and has overcome production delays that had created an early bottleneck A lessening of throughput. It often refers to networks that are overloaded, which is caused by the inability of the hardware and transmission lines to support the traffic. It can also refer to a mismatch inside the computer where slower-speed peripheral buses and devices prevent the CPU for Spring deliveries. In the latest U.S. data on consumer sales, Cobra woods achieved share gains both on-course and off-course, and Cobra irons were again the number 1 choice. The third superstar golf brand, Foot-Joy, again enhanced its leadership. Golf shoe unit sales were up 5% through June. Foot- Joy is the leader by a huge margin in the world of professional golf, used by over 70% of the world's leading professionals. At the U.S. Open, 115 out of the 156 players (74%) made Foot-Joy the number 1 golf shoe for the 50th consecutive U.S. Open! Overall, we expect substantial contribution growth throughout 1996 from the golf brands, principally reflecting the addition of Cobra but also reflecting continued excellent growth from the Titleist, Pinnacle and Foot-Joy brands. Headquartered in Old Greenwich, Connecticut, American Brands is an international consumer products holding company. Its operating companies have powerhouse brands and leading market positions. Major distilled spirits brands sold by units of JBB Worldwide, Inc. include Jim Beam and Old Grand-Dad Old Grand-Dad is the name of a bourbon whiskey from Nelson County, Kentucky. The company was created by Raymond B. Hayden and named after his grandfather Basil Hayden, Sr., a well known distiller during his lifetime who is depicted on the front of each bottle. bourbons, DeKuyper cordials and Whyte & Mackay Scotch scotch 1 tr.v. scotched, scotch·ing, scotch·es 1. To put an abrupt end to: The prime minister scotched the rumors of her illness with a public appearance. 2. . MasterBrand Industries has leading hardware and home improvement brands including Moen faucets, Master locks and Aristokraft cabinets. ACCO World Corporation's major office product brands include Day- Timer timer, n radiographic timing device that functions as an automatic exposure timer and a switch to control the current to the high-tension transformer and filament transformer. The face of the timer is calibrated in seconds and fractions of seconds. and Swingline. Acushnet Company's golf brands include Titleist, Cobra, Pinnacle and Foot-Joy. Gallaher Limited sells tobacco products internationally, principally in Europe, where its major brands include Benson and Hedges and Silk Cut. -0-
AMERICAN BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three
Months
Ended June
30,
1996 1995 % Change
Net Sales $2,486.0 $2,594.7 (4.2)
Cost of sales 1,818.3 1,917.8 (5.2)
Advertising, selling, general
and administrative expenses 409.1 434.5 (5.8)
Amortization of intangibles 28.1 24.1 16.6
Interest and related expenses 44.6 40.1 11.2
Other (income) expenses, net (5.3) (8.9) (40.4)
Income Before Income Taxes 191.2 187.1 2.2
Income taxes 69.2 68.0 1.8
Income Before Extraordinary Items 122.0 119.1 2.4
Extraordinary items - (2.7) -
Net Income 122.0 116.4 4.8
Earnings Per Common Share
Primary
Income before extraordinary items $0.69 $0.63 9.5
Extraordinary items - (0.01) -
Net income $0.69 $0.62 11.3
Fully diluted
Income before extraordinary items $0.68 $0.62 9.7
Extraordinary items - (0.01) -
Net income $0.68 $0.61 11.5
Avg. Common Shares Outstanding
Primary 174.9 188.0 (7.0)
Fully diluted 178.9 195.6 (8.5)
AMERICAN BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share amounts)
(Unaudited)
Six Months
Ended June
30,
1996 1995 % Change
Net Sales $5,223.9 $5,387.2 (3.0)
Cost of sales 3,877.5 4,022.0 (3.6)
Advertising, selling, general
and administrative expenses 807.6 858.7 (6.0)
Amortization of intangibles 53.4 48.2 10.8
Interest and related expenses 90.0 86.1 4.5
Other (income) expenses, net (3.3) (16.0) (79.4)
Income Before Income Taxes 398.7 388.2 2.7
Income taxes 152.6 152.5 0.1
Income Before Extraordinary Items 246.1 235.7 4.4
Extraordinary items (10.3) (2.7) -
Net Income 235.8 233.0 1.2
Earnings Per Common Share
Primary
Income before extraordinary items $1.39 $1.23 13.0
Extraordinary items (0.06) (0.01) -
Net income $1.33 $1.22 9.0
Fully diluted
Income before extraordinary items $1.36 $1.21 12.4
Extraordinary items (0.06) (0.01) -
Net income $1.30 $1.20 8.3
Avg. Common Shares Outstanding
Primary 176.3 191.3 (7.8)
Fully diluted 182.4 201.1 (9.3)
NOTES:
(1) Net sales by business segment are as follows (in millions):
Three Months Ended June 30,
1996 1995 %Change
International Tobacco (a) $1,278.3 $1,334.0 (4.2)
Distilled Spirits (a) 337.1 315.3 6.9
Hardware & Home Improve. 335.4 312.2 7.4
Prods.
Office Products 271.4 259.0 4.8
Golf & Leisure Products (b) 263.8 192.4 37.1
2,486.0 2,412.9 3.0
Businesses Disposed (c) - 181.8 -
$2,486.0 $2,594.7 (4.2)
Six Months Ended June 30,
1996 1995 %Change
International Tobacco (a) $2,961.1 $2,857.1 3.6
Distilled Spirits (a) 583.5 570.5 2.3
Hardware & Home Improve. 656.7 634.5 3.5
Prods.
Office Products 549.0 544.5 0.8
Golf & Leisure Products (b) 473.6 342.3 38.4
5,223.9 4,948.9 5.6
Businesses Disposed (c) - 438.3 -
$5,223.9 $5,387.2 (3.0)
Operating company contribution by business segment are as
follows (in millions):
Three Months Ended June 30,
1996 1995 %Change
International Tobacco $102.7 $101.6 1.1
Distilled Spirits 56.9 56.5 0.7
Hardware & Home Improve. 50.9 49.6 2.6
Prods.
Office Products 15.6 13.8 13.0
Golf & Leisure Products (b) 56.6 37.0 53.0
282.7 258.5 9.4
Businesses Disposed (c) - 3.9 -
$282.7 $262.4 7.7
Six Months Ended June 30,
1996 1995 %Change
International Tobacco $252.9 $250.4 1.0
Distilled Spirits 93.1 92.3 0.9
Hardware & Home Improve. 101.2 103.1 (1.8)
Prods.
Office Products 40.5 36.3 11.6
Golf & Leisure Products (b) 94.6 60.7 55.8
582.3 542.8 7.3
Businesses Disposed (c) - 5.9 -
$582.3 $548.7 6.1
AMERICAN BRANDS, INC.
(a) Federal and foreign excise taxes included in net sales
and cost of sales are as follows (in millions):
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
International
Tobacco $987.3 $1,021.7 $2,300.0 $2,197.6
Distilled
Spirits 116.1 117.6 202.3 219.4
$1,103.4 $1,139.3 $2,502.3 $2,417.0
(b) In January 1996, the Company acquired Cobra Golf
Incorporated for an aggregate cost of approximately
$715 million in cash, including fees and expenses.
These costs exceeded the fair value of net assets
acquired by approximately $650 million. Cobra's
operations have been included in consolidated results
from the date of acquisition.
(c) Businesses Disposed includes the results of operations
of nonstrategic businesses, principally U.K.-based
Retail distribution (Forbuoys sold July 24, 1995) and
Housewares (Prestige sold May 2, 1995).
(2) On March 5, 1996, the Company redeemed its $150 million 7-
5/8% Eurodollar Convertible Debentures, Due 2001, at a
redemption price of 103.8125% of the principal amount plus
accrued interest. On March 1, 1996, the Company redeemed
its $150 million 9-1/8% Debentures, Due 2016, at a
redemption price of 104.4375% of the principal amount plus
interest. In connection with the redemptions, the Company
recorded an extraordinary items charge of $10.3 million
($15.8 million pretax), or six cents per Common share, and
reduced the number of fully diluted shares outstanding by
2.8 million.
On April 11, 1995, holders of $199.5 million of the $200
million 5-3/4% Eurodollar Convertible Debentures, Due 2005,
exercised their right to "put" their Debentures at a price
of 114.74% plus accrued interest. This resulted in a total
payment by the Company of $240.4 million, including premium
and accrued interest. In connection with this exercise, the
Company recorded an extraordinary item charge of $2.7
million ($4.1 million pretax), or one cent per Common share,
and reduced the number of fully diluted shares outstanding
by 5.1 million.
(3) The Company and its subsidiaries are defendants in various
lawsuits associated with their business and operations,
including actions based upon allegations that human ailments
have resulted from tobacco use. It is not possible to
predict the outcome of the pending litigation, but
management believes that there are meritorious defenses to
the pending actions and that the pending actions will not
have a material adverse effect upon the results of
operations, cash flow or financial condition of the Company.
These actions are being vigorously contested.
On December 22, 1994, the Company sold The American Tobacco
Company subsidiary to Brown & Williamson Tobacco
Corporation, a wholly-owned subsidiary of B.A.T Industries
p.l.c. In connection with the sale, Brown & Williamson
Tobacco Corporation and The American Tobacco Company agreed
to indemnify the Company against claims arising from smoking
and health and fire safe cigarette matters relating to the
tobacco business of The American Tobacco Company.
(4) This press release contains statements relating to future
results which are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of
1995. Actual results may differ materially from those
projected as a result of certain risks and uncertainties,
including but not limited to changes in general economic
conditions, foreign exchange rate fluctuations, competitive
product and pricing pressures, the impact of excise tax
increases with respect to international tobacco and
distilled spirits, regulatory developments, the
uncertainties of litigation, as well as other risks and
uncertainties detailed from time to time in the Company's
Securities and Exchange Commission filings.
AMERICAN BRANDS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEET
(In millions)
June 30, December 31,
1996 1995
Assets (Unaudited)
Current Assets
Cash and Cash Equivalents $114.4 $139.9
Accounts Receivable, Net 1,470.0 984.4
Inventories 1,338.5 1,840.2
Other Current Assets 235.9 199.5
-------- --------
Total Current Assets 3,158.8 3,164.0
Property, Plant and Equipment, Net 1,138.3 1,137.3
Intangibles Resulting From
Business Acquisitions, Net 3,910.6 3,305.2
Other Assets 434.4 414.7
-------- --------
Total Assets $8,642.1 $8,021.2
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