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BROWN-FORMAN REPORTS INCREASED DIVIDENDS AND SECOND QUARTER EARNINGS

BROWN-FORMAN REPORTS INCREASED DIVIDENDS AND SECOND QUARTER EARNINGS
    LOUISVILLE, Ky., Nov. 21 /PRNewswire/ -- Brown-Forman Corporation (AMEX: BF.A BF.B) announced that its Directors, showing their continuing confidence in the company's long-term prospects, increased the quarterly cash dividend 9 percent from $.56 to $.61 per share on Class A and Class B common stock.  As a result, the indicated annual cash dividend rose from $2.24 to $2.44.
    The company also announced that net income for the second quarter rose 20 percent to $52.7 million or $1.91 per share compared to $44.0 million or $1.58 per share in the  year-ago period.
    Net income for the first six months was $80.5 million or $2.91 per share compared to $80.1 million or $2.87 per share during the same period last year.
    Mr. W. L. Lyons Brown, Jr., Chairman and Chief Executive Officer, said, "we are pleased with Brown-Forman's progress through the first six months of the year during a recessionary environment which was exacerbated by the federal excise tax increase earlier this year on distilled spirits and wines.  Assuming a slowly improving economy, we remain confident that we will realize solid second half performance and that Brown-Forman will achieve earnings per share growth for the full year."
    Despite moderating volume declines in the second quarter, higher prices on wine and spirits generally have aided revenues and profits of the company's beverage business.  Last year's second quarter was negatively affected by lower-than-normal sales as wholesalers purchased goods during the prior quarter in advance of price increases on many of the company's major spirits brands.  While this buying activity often distorts quarterly performance, the company expects that higher prices will continue to yield increases in revenues and profit as volume trends return to more normal levels in the future.
    During the first half of the fiscal year, worldwide depletions of the company's major wine and spirits brands declined moderately. In the U.S., demand has been negatively affected by a reduction in trade inventories and price increases resulting from higher domestic excise taxes.  In international markets, Jack Daniel's continues to experience solid growth.  Southern Comfort has been adversely affected overseas by difficult economic conditions in several of the brand's major markets.
    During the second quarter, Brown-Forman's consumer durables segment reported a sales increase of 10 percent, excluding Dansk and Gorham, a recent acquisition.  In a difficult retail environment, Lenox China achieved solid results and Lenox Collections continued to show strong growth following the successful introduction and positive acceptance of several new products.  The integration of Dansk is proceeding on schedule and reinforces our prior belief that the acquisition will enhance the sector's growth and profitability over the next several years.
    Brown-Forman Corporation is a diversified producer and marketer of fine quality consumer products, including Jack Daniel's Tennessee Whiskey, Canadian Mist, Southern Comfort, Korbel California Champagnes, Lenox China and Crystal, Dansk International Designs, Gorham Silver, Crystal and China, and Hartmann Luggage.
                    BROWN-FORMAN CORPORATION
                      LOUISVILLE, KENTUCKY
                     CONSOLIDATED STATEMENT
        (Expressed in thousands except per share amounts)
                                                  THREE MONTHS ENDED
                                                      OCTOBER 31,
                                                   1991         1990
    Net Sales                                   $452,862      388,376
    Operating Income                            $ 84,240       68,419
    Income Before Income Taxes                  $ 81,052       67,123
    Taxes on Income                             $ 28,348       23,156
    Net Income                                  $ 52,704       43,967
    Earnings Per Share of Common Stock          $   1.91         1.58
    Average Shares of Common Stock                27,555       27,800
    Net Sales Less Excise Tax                   $380,974      322,427
                    BROWN-FORMAN CORPORATION
                      LOUISVILLE, KENTUCKY
                     CONSOLIDATED STATEMENT
        (Expressed in thousands except per share amounts)
                                                   SIX MONTHS ENDED
                                                     OCTOBER 31,
                                                   1991         1990
    Net Sales                                   $771,021      719,588
    Operating Income                            $127,654      124,381
    Income Before Income Taxes                  $122,472      122,215
    Taxes on Income                             $ 41,973       42,066
    Net Income                                  $ 80,499       80,149
    Earnings Per Share of Common Stock          $   2.91         2.87
    Average Shares of Common Stock                27,592       27,889
    Net Sales Less Excise Tax                   $640,231      578,896
    These figures have been prepared in accordance with the company's customary accounting practices and have not been audited.
    -0-                         11/21/91
    /CONTACT:  David R. Jackson, Vice President-Assistant to Chairman, Brown-Forman Corporation, 502-774-7309/
    (BF) CO:  Brown-Forman Corporation ST:  Kentucky IN:  REA SU:  ERN DIV CM -- CH005 -- 6003 11/21/91 15:01 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 21, 1991
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