US: Fortune Brands reaffirms Q2, FY forecasts

Fortune Brands has reiterated its earnings targets for both the second quarter and full year.

The US group, which owns Beam Global Spirits & Wine, said today (13 June) that it is on target to deliver results for the two periods in line with previous forecasts.

"With strong volume growth for our premium spirits brands, excellent marketplace acceptance for our new golf products and continued share gains in home products, Fortune Brands is on track to deliver results within the target ranges we've previously announced for both the second quarter and the full year," said Fortune's president and chief operating officer Bruce Carbonari.

"The most challenging quarter of the year is already behind us," he continued. Earlier this year, Fortune posted a 30.7% drop in net income for the first quarter, down to US$120.2m. Group net sales were down by 3% to $1.95bn.

"Based on our quarter-to-date results, we expect that Fortune Brands will deliver second-quarter results in line with our previously announced target of earnings per share before charges/gains to be down in the mid-single-digit-to-low-double-digit range.

"For the full year, we're continuing to target EPS before charges/gains for Fortune Brands to be in the range of down mid-single digits to up low-single digits."

Fortune Brands plans to report results for the second quarter on 27 July.