UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
July 25, 1995 (July 24, 1995)
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Date of Report (Date of earliest event reported)
AMERICAN BRANDS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-9076 13-3295276
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
l700 East Putnam Avenue, Old Greenwich, Connecticut 06870-0811
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (203) 698-5000
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<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events.
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Registrant's press releases dated July 24, 1995 are filed herewith as
Exhibits 20a and 20b and are incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
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20a. Press release of Registrant dated July 24, 1995.
20b. Press release of Registrant dated July 24, 1995.
This Current Report shall not be construed as a waiver of the right to
contest the validity or scope of any or all of the provisions of the Securities
Exchange Act of 1934 under the Constitution of the United States, or the
validity of any rule or regulation made or to be made under such Act.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this Current Report to be signed on its
behalf by the undersigned thereunto duly authorized.
AMERICAN BRANDS, INC.
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(Registrant)
By Robert L. Plancher
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Robert L. Plancher
Senior Vice President
and Chief Accounting Officer
Date: July 25, 1995
<PAGE>
EXHIBIT INDEX
Sequentially
Exhibit Numbered Page
- ------- -------------
20a. Press release of Registrant dated July 24, 1995.
20b. Press release of Registrant dated July 24, 1995.
EXHIBIT 20a
FOR IMMEDIATE RELEASE
Contact: Roger W. W. Baker
(203) 698-5148
Daniel A. Conforti
(203) 698-5132
AMERICAN BRANDS SECOND QUARTER EARNINGS;
E.P.S. FROM ONGOING OPERATIONS UP 15% TO 63 CENTS;
EXPECTS 17%+ INCREASE IN 1995 E.P.S. FROM ONGOING OPERATIONS
Old Greenwich, CT, July 24, 1995 -- American Brands, Inc. (NYSE-
AMB) today announced that earnings per Common share from ongoing
operations for the quarter ended June 30, 1995 rose 15% to 63
cents per share, compared with 55 cents per share for the second
quarter of 1994. Fully diluted earnings per share rose 13% to 62
cents. Sales from ongoing operations declined 2%, but excluding
businesses sold or pending disposition, sales would have been up
9%. Income from ongoing operations rose 6% to $119 million.
For the six months, earnings per share from ongoing
operations were $1.23, up 18% from $1.04 last year. Fully
diluted earnings per share rose 16% to $1.21. Sales from ongoing
operations were up 2%, but excluding businesses sold or pending
disposition, sales would have been up 11%. Income from ongoing
operations rose 11% to $236 million.
Ongoing operations for 1994 excludes results from Franklin
Life, which was sold in January 1995 and was accounted for as a
discontinued operation, and treats The American Tobacco Company,
which was sold in December 1994, as if it were a discontinued
operation. Net income, compared with 1994 results including
discontinued operations and The American Tobacco Company,
declined 29% in the quarter and 26% for the six months.
Fluctuations in exchange rates for foreign currencies,
primarily the British pound, favorably affected sales, net income
and E.P.S. by $100 million, $5 million and 3 cents, respectively,
in the quarter, and by $221 million, $12 million and 6 cents for
the six months. Lower average Common shares outstanding
benefited E.P.S. by 4 cents in the quarter and 6 cents for the
six months. "Interest and related expenses" and "Other (income)
expenses, net" benefited substantially from the disposition
proceeds. Conversely, the comparison was adversely affected by
an increase in the effective income tax rate for the quarter to
36.3% from 30.3% a year ago; last year's quarter reflected higher
reversals of tax provisions no longer required. For the six
months, the effective rate was 39.3% versus 36.2% last year.
Chairman and Chief Executive Officer Thomas C. Hays said:
"We have continued to move aggressively to build shareholder
value, with another strong gain in ongoing earnings per share;
solid performance from most operations, including a 9% overall
increase in sales, excluding businesses sold or pending
disposition; substantial share repurchases, and continued sale of
nonstrategic assets.
"Our principal operations all achieved growth in operating
company contribution in the first half, with double-digit
increases recorded by brands that represented nearly two-thirds
of our consolidated contribution: office products and golf and
leisure as well as by international tobacco, which benefited from
favorable foreign exchange.
"Earnings per share growth has been accelerated by
aggressive share repurchases. Under the 20 million share
authorization, we have now purchased 16.3 million shares, and,
subject to market conditions, we expect to complete that
authorization before the end of this year. In addition, we have
authority to purchase a further five million shares this year,
and, subject to market conditions, we may well purchase those
shares as well. Three months ago, holders of the $200 million
5.75% Convertible Debentures due April 2005 exercised a one-time
put, which resulted in an extraordinary charge of 1 cent per
share and had the effect of reducing fully diluted shares by 5.1
million. So fully diluted shares have been reduced by more than
21 million, or more than 10%, thus far in 1995.
"We have also been moving aggressively with dispositions.
In May, Prestige housewares was sold. A smaller U.K. operation
was sold in February, and we're moving ahead with the pending
disposition of Gallaher's retail operations.
"In the second quarter, contribution from our U.K.-based
Gallaher Tobacco brands was up 8% in dollars and 2% in sterling.
Profits benefited from an April cigarette price increase,
averaging about 5% to Gallaher, as well as ongoing productivity
improvements. These factors more than offset cigarette unit
volume declines in the U.K. as well as in the C.I.S., where sales
are opportunistic. For the six months, Gallaher's U.K. cigarette
volume declined 1.6%, and worldwide volume declined 3.3%. U.K.
industry consumer sales for the six months are estimated to have
declined in the range of 2.5%, and Gallaher's estimated share was
stable at approximately 39.5% for the third successive quarter.
In June, Gallaher strengthened premium-priced Benson and Hedges,
the number 1 brand in the U.K., with the introduction of Benson
and Hedges Ultra Lights, and bolstered its price-value Berkeley
brand with the launch of Berkeley King Size.
"Distilled spirits contribution increased 6% in the quarter,
with increases at both Jim Beam Brands and Whyte & Mackay. Jim
Beam, the second largest distilled spirits company in the U.S.,
achieved a 1% increase in contribution despite aggressive
marketing investments, particularly for Jim Beam bourbon, the
world's leading bourbon, which is celebrating its 200th
anniversary. Beam continued to achieve strong results in
international markets. International case shipments were up
13.4%, led by particularly strong gains in Australia and Germany,
its two largest overseas markets. International contribution was
up 9% and represented 24% of Beam's total contribution in the
quarter. Although competitive conditions remain intense in the
U.S., Beam has increased prices in selected regional markets.
Domestic case sales were up slightly in the quarter, and Beam has
continued to introduce new products. After Shock, an innovative
imported premium cordial, is off to a particularly promising
start, with over one million bottles sold in its first three
months of distribution.
"Whyte & Mackay, which was recently ranked as the number one
supplier of scotch in the U.K. market, achieved substantially
higher contribution in the quarter, up 53% in dollars and 45% in
sterling, reflecting the timing of trade purchases last year.
Underlying competitive conditions remain difficult, particularly
in the U.K. Late last month, we announced new management at
Whyte & Mackay with the election of Kenneth Hitchcock, who had a
superb record as Managing Director of Jim Beam's Australian
subsidiary, as Chairman and Chief Executive.
"As we noted last month, orders at the MasterBrand hardware
and home improvement group softened significantly in the quarter,
consistent with the general slowdown reported at home centers as
well as in new construction, and reflecting significant inventory
reductions by the trade. Including the reversal of reserves
primarily related to a joint venture, contribution was down 6% in
the second quarter but was up 2% for the six months.
Particularly affected were Moen, the number one faucet brand in
North America, which has been investing heavily in new product,
manufacturing and marketing programs, and Aristokraft, which is
number two in kitchen and bath cabinets in the U.S. Earlier this
month, Moen, which has been gaining market share in North
America, completed arrangements for a joint venture to
manufacture and sell Moen-branded products in the People's
Republic of China. Master Lock, the world's leading padlock
brand, and Waterloo, the world leader in tool storage products,
both achieved higher contribution in the quarter and six months.
Master Lock continues to benefit from strong growth in its door
hardware line, which achieved a 19% sales increase in the
quarter.
"ACCO, the world leader in office supplies, again achieved
strong market and profit gains. Contribution rose 10% in the
quarter. In North America, a double-digit sales increase was
achieved despite a reduction in trade inventories, following a
buildup in the first quarter. Solid sales gains in Europe were
led by strength on the Continent. ACCO is continuing to gain
share with key customers, with major gains achieved by the Wilson
Jones brand of ring binders, and is benefiting from significant
new products, such as the Day-Timer Organizer software line,
which is gaining wider distribution in superstores. Although
raw material prices continued to escalate substantially in the
first half, ACCO has been benefiting from its ongoing
restructuring, improved customer service levels and price
increases. During the past month, ACCO announced two fill-in
product acquisitions: Silicon Sports, a leading brand in
computer accessories such as ergonomic wrist rests and specialty
mouse pads, and Statx Brands, which are high-technology cleaning
and protection products for computers and other office products.
These brands are being integrated into ACCO's Kensington computer
accessories group.
"Titleist and Foot-Joy, the world leader in golf, had
another outstanding quarter. Contribution was up 12%, with
strong volume increases in all categories. Golf ball units were
up 11%, golf gloves were up 11% and golf shoes were up 12%.
Titleist has been having exceptional success in aggressively
developing its club business. Golf club sales were up 28% for
the second successive quarter, backed by excellent acceptance of
new products, including the supersize Titleist Howitzer titanium
drivers and Scotty Cameron by Titleist putters. On worldwide
competitive golf tours, the Titleist ball continues its hottest
start ever with 19 wins in 26 U.S. P.G.A. tour events.
Worldwide, Titleist was the winning ball at 69 tournaments, more
than five times as many as its nearest competitor.
"Overall, our prospects are excellent. We have a powerful
array of market leading brands, backed by tremendous financial
resources. Bolstered by the benefits of our aggressive share
repurchases this year, we expect a strong second half, with a
particularly strong ongoing E.P.S. comparison in the third
quarter. For the full year, we now anticipate that earnings per
share will exceed last year's $2.37 ($2.34 fully diluted) from
ongoing operations by more than 17%.
"Longer term, our goal is to achieve compound earnings per
share growth in the range of 10% -- depending on the economy,
exchange rate stability and the pricing environment --and we are
committed to use our powerful resources to build value for our
shareholders. Our operations are generating excellent returns on
net operating assets, so our principal focus is on internal
growth and investment. We are also seeking high return
acquisitions, with the principal objective of accelerating the
growth of our hardware and home improvement, office products,
golf and leisure and distilled spirits businesses. We will also
consider whether further share repurchases beyond the current
authorizations would be in the best interest of our
shareholders.
"Gallaher Tobacco continues to contend with substantial U.K.
excise tax increases that have stimulated trading down by
consumers in an intensely competitive market. In this situation,
Gallaher is moving aggressively to defend its brands, and it will
be challenging to achieve profit growth in the last half of the
year. Longer term, Gallaher has powerful assets, including its
potent position as the market leader, its enviable brand
portfolio, highly effective marketing programs and tremendous
cash flow.
"In distilled spirits, Jim Beam Brands and Whyte & Mackay
continue to cope with difficult home market conditions. Beam's
international business continues to perform very well and has
excellent potential, and the 200th anniversary programs have
further strengthened the image of Jim Beam bourbon, worldwide.
We expect modest contribution growth from Beam for the full year.
For Whyte & Mackay, as we have been noting, some nonrecurring
items benefited 1994 results, principally one-time bulk sales
late in the year. So, the fourth quarter comparison will be very
difficult, and we anticipate lower contribution for the full
year. Nevertheless, we have moved decisively to strengthen the
management to vigorously address the issues at Whyte & Mackay.
"The MasterBrand hardware and home improvement brands were
adversely affected by economic and trade conditions in the second
quarter. If the recent decline in interest rates has a favorable
impact on the economy, MasterBrand is well positioned to resume
solid long-term growth, and contribution for the full year should
be ahead of last year's level.
"Our ACCO office products brands and Titleist and Foot-Joy
golf brands are positioned as world leaders. Both should achieve
excellent results for the full year."
* * * * *
Headquartered in Old Greenwich, Connecticut, American Brands
is a focused international consumer products company with
powerhouse brands and leading market positions in distilled
spirits, hardware and home improvement products, office products,
golf and leisure products, and international tobacco. Major
brands include Jim Beam and Old Grand-Dad bourbons, DeKuyper
cordials, Titleist, Pinnacle and Foot-Joy golf products, Moen
faucets, Master locks, Aristokraft cabinets, ACCO office products
including Day-Timer and Swingline, and Benson and Hedges and Silk
Cut cigarettes.
# # #
AMERICAN BRANDS, INC.
(In millions, except per share
amounts)
(Unaudited)
Three Months Ended June 30,
1995 1994 % Change
Net Sales
International Tobacco (2) $1,334.0 $1,215.4 9.8
Distilled Spirits (2) 315.3 292.9 7.6
Hardware & Home Improve. Prods. 312.2 309.0 1.0
Office Products 259.0 232.7 11.3
Golf & Leisure Products 192.4 167.9 14.6
Other Businesses (3)(5) 181.8 417.4 (56.4)
--------- --------- -------
Ongoing Operations 2,594.7 2,635.3 (1.5)
Domestic Tobacco (2)(4) - 405.6 -
--------- --------- -------
Total Continuing Operations 2,594.7 3,040.9 (14.7)
========= ========= =======
Operating Company Contribution
International Tobacco 101.6 94.1 8.0
Distilled Spirits 56.5 53.2 6.2
Hardware & Home Improve. Prods. 49.6 52.7 (5.9)
Office Products 13.8 12.5 10.4
Golf & Leisure Products 37.0 33.1 11.8
Other Businesses (3)(5) 3.9 4.7 (17.0)
--------- --------- -------
Ongoing Operations 262.4 250.3 4.8
Domestic Tobacco (4) - 70.2 -
--------- --------- -------
Total Continuing Operations 262.4 320.5 (18.1)
========= ========= =======
Amortization of Intangibles 24.1 23.9 0.8
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Operating Income 238.3 296.6 (19.7)
--------- --------- -------
Interest and Related Expenses 40.1 55.5 (27.7)
Corporate Admin. Expenses 20.0 21.0 (4.8)
Other (Income) Expenses, Net (8.9) 2.2 -
--------- --------- -------
Income Before Income Taxes 187.1 217.9 (14.1)
Income Taxes 68.0 66.0 3.0
--------- --------- -------
Income From Continuing Opers.(1) 119.1 151.9 (21.6)
Discontinued Operations (6) - 12.0 -
Extraordinary Item (7) (2.7) - -
--------- --------- -------
Net Income 116.4 163.9 (29.0)
========= ========= =======
Earnings per Common Share
Primary
Income From Continuing Opers.(1) $0.63 $0.75 (16.0)
Discontinued Operations (6) - 0.06 -
Extraordinary Item (7) (0.01) - -
--------- --------- -------
Net Income $0.62 $0.81 (23.5)
Fully diluted
Income From Continuing Opers.(1) $0.62 $0.74 (16.2)
Discontinued Operations (6) - 0.06 -
Extraordinary Item (7) (0.01) - -
--------- --------- -------
Net Income $0.61 $0.80 (23.8)
Avg. Common Shares Outstanding
Primary 188.0 201.8 (6.8)
Fully Diluted 195.6 213.4 (8.3)
(NOTES FOLLOW)
AMERICAN BRANDS, INC.
(In millions, except per share
amounts)
(Unaudited)
Six Months Ended June 30,
1995 1994 % Change
Net Sales
International Tobacco (2) $2,857.1 $2,545.7 12.2
Distilled Spirits (2) 570.5 533.5 6.9
Hardware & Home Improve. Prods. 634.5 598.3 6.1
Office Products 544.5 465.6 16.9
Golf & Leisure Products 342.3 301.4 13.6
Other Businesses (3)(5) 438.3 815.2 (46.2)
--------- --------- -------
Ongoing Operations 5,387.2 5,259.7 2.4
Domestic Tobacco (2)(4) - 782.1 -
--------- --------- -------
Total Continuing Operations 5,387.2 6,041.8 (10.8)
========= ========= =======
Operating Company Contribution
International Tobacco 250.4 220.3 13.7
Distilled Spirits 92.3 91.6 0.8
Hardware & Home Improve. Prods. 103.1 101.3 1.8
Office Products 36.3 31.9 13.8
Golf & Leisure Products 60.7 54.6 11.2
Other Businesses (3)(5) 5.9 10.0 (41.0)
--------- --------- -------
Ongoing Operations 548.7 509.7 7.7
Domestic Tobacco (4) - 125.6 -
--------- --------- -------
Total Continuing Operations 548.7 635.3 (13.6)
========= ========= =======
Amortization of Intangibles 48.2 47.8 0.8
--------- --------- -------
Operating Income 500.5 587.5 (14.8)
--------- --------- -------
Interest and Related Expenses 86.1 112.8 (23.7)
Corporate Admin. Expenses 42.2 28.7 47.0
Other (Income) Expenses, Net (16.0) 4.9 -
--------- --------- -------
Income Before Income Taxes 388.2 441.1 (12.0)
Income Taxes 152.5 159.7 (4.5)
--------- --------- -------
Income From Continuing Opers.(1) 235.7 281.4 (16.2)
Discontinued Operations (6) - 31.7 -
Extraordinary Item (7) (2.7) - -
--------- --------- -------
Net Income 233.0 313.1 (25.6)
========= ========= =======
Earnings per Common Share
Primary
Income From Continuing Opers.(1) $1.23 $1.39 (11.5)
Discontinued Operations (6) - 0.16 -
Extraordinary Item (7) (0.01) - -
--------- --------- -------
Net Income $1.22 $1.55 (21.3)
Fully diluted
Income From Continuing Opers.(1) $1.21 $1.37 (11.7)
Discontinued Operations (6) - 0.15 -
Extraordinary Item (7) (0.01) - -
--------- --------- -------
Net Income $1.20 $1.52 (21.1)
Avg. Common Shares Outstanding
Primary 191.3 201.8 (5.2)
Fully Diluted 201.1 213.5 (5.8)
AMERICAN BRANDS, INC.
NOTES:
(1) Ongoing operations comparisons, excluding results of Franklin Life
which was accounted for as a discontinued operation and treating The
American Tobacco Company as if it were a discontinued operation, are as
follows (in millions, except EPS):
Income from Continuing Operations Before Extraordinary Item:
Three Months Six Months
1995 1994 %Change 1995 1994 %Change
Income:
Ongoing $119.1 $112.7 5.7 $235.7 $211.7 11.3
Operations
Domestic Tobacco - 39.2 - - 69.7 -
As Reported $119.1 $151.9 (21.6) $235.7 $281.4 (16.2)
Earnings per Common share:
Primary
Ongoing $0.63 $0.55 14.5 $1.23 $1.04 18.3
Operations
Domestic Tobacco - 0.20 - - 0.35 -
As Reported $0.63 $0.75 (16.0) $1.23 $1.39 (11.5)
Fully Diluted
Ongoing $0.62 $0.55 12.7 $1.21 $1.04 16.3
Operations
Domestic Tobacco - 0.19 - - 0.33 -
As Reported $0.62 $0.74 (16.2) $1.21 $1.37 (11.7)
Ongoing operations continue to include results of nonstrategic
businesses disposed of including Optical, Acushnet Rubber Division and
Housewares.
(2) Federal and foreign excise taxes included in net sales for the three
months and six months ended June 30 are as follows (in millions):
Three Months Six Months
1995 1994 1995 1994
International Tobacco $1,021.7 $ 921.5 $2,197.6 $1,949.8
Domestic Tobacco - 116.4 - 212.7
Distilled Spirits 117.6 115.4 219.4 206.1
$1,139.3 $1,153.3 $2,417.0 $2,368.6
(3) On July 12, 1994, Dollond & Aitchison Group PLC, a subsidiary of
Gallaher Limited, was sold for total consideration of $146 million,
which approximated the carrying value of the company.
AMERICAN BRANDS, INC.
NOTES (CONTINUED):
(4) On December 22, 1994, the Company sold The American Tobacco Company,
its domestic tobacco business, for $1 billion in cash, before related
expenses. An after-tax gain of $508.3 million, or $2.52 per Common
share, was recognized on the transaction in the fourth quarter of
1994.
(5) The Company announced plans to dispose of a number of nonstrategic
businesses and product lines, including U.K.-based Forbuoys and
Prestige, both subsidiaries of Gallaher Limited, and in the fourth
quarter of 1994 recorded an after-tax loss of $241.3 million, or $1.20
per Common share, substantially non-cash, based on the anticipated sale
of these businesses for proceeds in the range of $150-$175 million. The
sale of Prestige was completed on May 2, 1995.
(6) On November 30, 1994, the Company entered into an agreement to sell its
Franklin life insurance business for $1.17 billion in cash, before
related expenses. A net loss of $206.8 million was recognized on the
transaction in the fourth quarter of 1994 in discontinued operations.
The sale was completed on January 31, 1995.
(7) 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, and had the effect of reducing
fully diluted shares by 5.1 million. The early extinguishment of debt
resulted in a charge of $4.1 million ($2.7 million net of taxes).
(8) 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.
AMERICAN BRANDS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEET
(In millions)
June 30, December 31,
1995 1994
Assets (Unaudited)
Current Assets
Cash and Cash Equivalents $634.9 $110.1
Accounts Receivable, Net 1,358.5 1,067.9
Inventories 1,397.0 2,015.7
Net Assets of Discontinued Operations 0.0 1,170.0
Other Current Assets 212.3 307.2
-------- --------
Total Current Assets 3,602.7 4,670.9
Property, Plant and Equipment, Net 1,192.1 1,212.7
Intangibles Resulting From
Business Acquisitions 3,493.2 3,549.1
Other Assets 404.8 361.7
-------- --------
Total Assets $8,692.8 $9,794.4
========= =========
Liabilities and Stockholders' Equity
Current Liabilities
Short-Term Debt $64.6 $180.6
Current Portion - Long-term Debt 341.1 525.2
Other Current Liabilities 2,164.5 2,409.7
-------- --------
Total Current Liabilities 2,570.2 3,115.5
Long-Term Debt 1,436.3 1,512.1
Other Long-Term Liabilities 543.3 529.3
-------- --------
Total Liabilities 4,549.8 5,156.9
Stockholders' Equity 4,143.0 4,637.5
-------- --------
Total Liabilities and Stockholders' Equity $8,692.8 $9,794.4
========= =========
EXHIBIT 20b
FOR IMMEDIATE RELEASE
Contact: Roger W. W. Baker
(203) 698-5148
Daniel A. Conforti
(203) 698-5132
AMERICAN BRANDS ANNOUNCES SALE OF
U.K.-BASED RETAIL OPERATIONS
Old Greenwich, CT, July 24, 1995 -- American Brands, Inc. (NYSE-
AMB) announced today the sale of the retail operations of its
United Kingdom-based subsidiary, Gallaher Limited, to the
management of those operations.
Gallaher's retail operations comprise Forbuoys Limited, a
leading confectionery, tobacco and newsagent chain in the U.K.,
TM Group Limited, specializing in beverage and cigarette vending,
and Marshell Group Limited, which operates tobacco kiosks.
Chairman and Chief Executive Officer of American Brands,
Thomas C. Hays, said: "This is the most significant step in the
planned disposition of nonstrategic operations announced earlier
this year. In May, Prestige housewares was sold, and a smaller
U.K. operation was sold in February. Proceeds from the sales
completed put us well within the $150-175 million range that,
this past January, we indicated we expected from the nonstrategic
dispositions.
"Earlier today, we announced earnings per share from
continuing operations for the quarter ended June 30, 1995 rose
15% to 63 cents per share, compared with 55 cents per share for
the second quarter of 1994. We also indicated that we expect
that earnings per share for the full year 1995 will exceed last
year's $2.37 ($2.34 fully diluted) by more than 17%."
Headquartered in Old Greenwich, Connecticut, American Brands
is a focused international consumer products company with
powerhouse brands and leading market positions in distilled
spirits, hardware and home improvement products, office products,
golf and leisure products, and international tobacco. Major
brands include Jim Beam and Old Grand-Dad bourbons, DeKuyper
cordials, Titleist, Pinnacle and Foot-Joy products, Moen faucets,
Master locks, Aristokraft cabinets, ACCO office products
including Day-Timer and Swingline, and Benson and Hedges and Silk
Cut cigarettes.
# # #
