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BROWN-FORMAN REPORTS SECOND QUARTER EARNINGS

 LOUISVILLE, Ky., Nov. 24 ~PRNewswire~ -- Brown-Forman Corporation (NYSE: BF.A BF.B) announced that net income for the second quarter was $51.2 million or $1.86 per share compared to $52.7 million or $1.91 per share in the year-ago period. Net income for the first six months was $86.4 million or $3.13 per share compared to $80.5 million or $2.91 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. Strong performance within the company's wine and spirits business, in large measure due to the continued positive acceptance of Jack Daniel's Country Cocktails by consumers and solid volume growth of the company's spirits brands, has helped to offset weakness within the consumer durables segment generally resulting from a lackluster economy."
 Mr. Brown also said, "As a result of having accelerated exports of Jack Daniel's and imports of Italian wines during the first quarter to mitigate the harmful effects of a threatened trade dispute between the United States and the European Economic Community, we shipped less of these products during the current quarter. This resulted in a reduction of $.14 to second quarter earnings per share. This second quarter reduction offsets a $.14 increase in the first quarter, so the overall effect of the trade dispute on Brown-Forman's first half earnings has been negligible."
 On November 20, 1992, negotiators for the United States and the European Economic Community announced that they had reached an agreement on the oilseeds dispute. Mr. Brown stated, "we are pleased that the dedicated efforts of U.S. and European trade negotiators to resolve this impasse have paid off and that the threat of a trade war has been lessened. We remain hopeful that the oilseeds dispute has been finally resolved and that this will lead to a successful conclusion to the Uruguay Round, which will benefit the world's major trading partners."
 Despite the distortions related to international trade mentioned above, quarterly sales of the company's wines and spirits segment advanced modestly compared to last year. The encouraging consumer response to Jack Daniel's Country Cocktails accounted for most of the increase. In addition, sales were favorably affected by the inclusion of Fetzer Vineyards for two months during this year's second quarter.
 With the exceptions of the strong performance of Jack Daniel's Country Cocktails and slower sales of Korbel Champagne, worldwide sales volume of the company's wine and spirits brands advanced moderately during the first half of the fiscal year. In international markets, Jack Daniel's experienced solid growth. Southern Comfort's overseas volume was down slightly during the first six months. This represents an improvement over greater declining trends in prior periods caused by poor economic conditions in several of the brand's major markets, primarily Australia and the United Kingdom.
 During the second quarter, Brown-Forman's consumer durables segment reported a slight sales decline. The decline is primarily due to lower sales at Hartmann luggage.
 The consumer durables segment's operating income for the first half is significantly below that of the year-ago period largely due to weak consumer demand in company-owned retail stores and to higher advertising expenditures and lower response rates at Lenox Collections. The sales decline at Hartmann reflects weaker industry-wide sales for premium luggage lines. The company expects the retail and economic environment to remain difficult for the balance of the fiscal year. However, successful new product introductions at Lenox China and expected future benefits from higher first-half advertising spending at Lenox Collections may enable the segment to achieve full year results approximating fiscal 1992.
 During the second quarter, Brown-Forman announced its intention to acquire a 20 percent interest in Swift And Moore Pty. Limited, one of the leading importers and marketers of spirits and wines in Australia. This investment demonstrates the company's commitment to strengthening its position in overseas markets and signifies its confidence in Swift And Moore and the long-term prospects for the Australian market.
 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, Fetzer Vineyards California Wines, 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,
 1992 1991
 Net Sales $464,918 452,862
 Operating Income $ 83,048 84,240
 Income Before Income Taxes $ 79,354 81,052
 Taxes on Income $ 28,122 28,348
 Net Income $ 51,232 52,704
 Earnings Per Share of Common Stock $ 1.86 1.91
 Average Shares of Common Stock 27,555 27,555
 Net Sales Less Excise Tax $392,755 380,974
 BROWN-FORMAN CORPORATION
 LOUISVILLE, KENTUCKY
 CONSOLIDATED STATEMENT
 (Expressed in thousands except per share amounts)
 SIX MONTHS ENDED
 OCTOBER 31,
 1992 1991
 Net Sales $862,032 771,021
 Operating Income $139,224 127,654
 Income Before Income Taxes $133,507 122,472
 Taxes on Income $ 47,077 41,973
 Net Income $ 86,430 80,499
 Earnings Per Share of Common Stock $ 3.13 2.91
 Average Shares of Common Stock 27,555 27,592
 Net Sales Less Excise Tax $719,191 640,231
 These figures have been prepared in accordance with the company's customary accounting practices and have not been audited.
 -0- 11~24~92
 ~CONTACT: David R. Jackson, Vice President, Assistant To Chairman, Brown-Forman Corporation, 502-774-7309~
 (BF)


CO: Brown-Forman Corporation ST: Kentucky IN: LEI SU: ERN

CM -- CH002 -- 0918 11~24~92 09:29 EST
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Date:Nov 24, 1992
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