LINCOLNSHIRE, Ill. – Fortune Brands Inc. (FO), a producer and distributor of vodka, bourbon and golf equipment, said Friday that second-quarter earnings rose 20 percent on double-digit sales gains for its home and hardware and spirits and wine brands.
Net income climbed to $200.3 million, or $1.33 per share, from $167.8 million, or $1.11 per share, a year ago.
Sales rose 10 percent to $2.07 billion from $1.89 billion last year, with acquisitions and foreign exchange boosting results by 2 percent.
Excluding charges and gains, the company's operating profit of $1.45 per share in the latest quarter, topping analysts' expectations of $1.44 per share on sales of $2.01 billion, according to a Thomson Financial poll.
The company said it expects the upcoming spirits and wine acquisition to add 25 cents to 35 cents to 2006 earnings per share. For the third-quarter and full year, Fortune Brands sees continuing operations, including the new spirits and wine brands, delivering double-digit growth in operating earnings per share.
The company's office products business will be considered a discontinued operation as of the third quarter. Fortune Brands is spinning off office products company ACCO World Corp. (search) , and has partnered with France's Pernod Ricard to offer $14 billion for spirits giant Allied Domecq (AED).
Fortune Brands distributes Jim Beam (search), DeKuyper (search), Knob Creek bourbon and Absolut vodka, as well as Cobra and Titleist golf equipment. The company also owns home products makers such as Moen, Master Lock and Therma-Tru doors.
The company's shares rose $1.13, or 1.2 percent, to $95.23 on the New York Stock Exchange.