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, 1996 (July 23, 1996)
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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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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events.
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Registrant's press release dated July 23, 1996 is filed herewith as
Exhibit 20 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
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20. Press release of Registrant dated July 23, 1996.
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 Mark Hausberg
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Mark Hausberg
Vice President and Treasurer
Date: July 25, 1996
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EXHIBIT INDEX
Sequentially
Exhibit Numbered Page
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20. Press release of Registrant dated
July 23, 1996.
EXHIBIT 20
Media Relations: Investor Relations:
Roger W. W. Baker Daniel A. Conforti
(203) 698-5148 (203) 698-5132
AMERICAN BRANDS SECOND QUARTER E.P.S. UP 10%
BEFORE 1995 EXTRAORDINARY CHARGE;
EXPECTS CONTINUED STRONG E.P.S. GROWTH
Old Greenwich, CT, July 23, 1996 -- American Brands, Inc. (NYSE-
AMB) today announced that earnings per Common share rose 10% to
69 cents for the quarter ended June 30, 1996, compared with 63
cents in the second quarter of 1995. Fully diluted earnings per
share rose 10% to 68 cents. For the six months, earnings per
share were $1.39, up 13% from $1.23 last year. Fully diluted
earnings per share rose 12% to $1.36.
These comparisons exclude extraordinary charges relating to
the retirement of debt of 1 cent per share ($3 million) in the
second quarter of 1995 and 6 cents per share ($10 million) in the
first quarter of 1996.
Net sales, excluding businesses sold in 1995, rose 3% to
$2.5 billion in the second quarter and 6% to $5.2 billion for the
six months. Operating company contribution, excluding the
businesses sold, was up 9% in the quarter and 7% year-to-
date. Last year, U.K. retailing and housewares operations, which
generated substantial sales, were sold. Including the disposed
businesses, sales declined 4% and 3% in the quarter and six
months, respectively, and contribution was up 8% and 6%,
respectively.
Income before the extraordinary charges increased 2% and 4%
in the quarter and six months, respectively. Including the
extraordinary charge, net income rose 5% and 1%, respectively.
Fluctuations in exchange rates for foreign currencies,
primarily the British pound, adversely affected sales, income
before extraordinary items and E.P.S. by $66 million, $2 million
and 1 cent, respectively, for the quarter, and by $127 million,
$6 million and 3 cents, respectively, for the six months.
Conversely, a 7% decline in average primary Common shares
outstanding (9% fully diluted) benefited E.P.S. by 5 cents in the
quarter. For the six months, an 8% decline in average primary
shares (9% fully diluted) benefited primary and fully diluted
E.P.S. by 11 and 13 cents, respectively.
Chairman and Chief Executive Officer Thomas C. Hays noted
that "we again achieved our long-term growth goal, with the 10%
E.P.S. gain in the quarter giving us a 13% gain for the six
months. These gains reflect the strength of our powerful
consumer brands and financial resources. Sales and operating
company contribution for ongoing operations were records in both
the quarter and six months, backed by broad-based gains. In the
quarter, contribution increases were reported in every category.
"We have continued to move aggressively in 1996 to create
and deliver value to our shareholders, with a significant
acquisition, vigorous brand building and substantial share
repurchases."
The January acquisition of Cobra Golf, in combination with
the Titleist and Foot-Joy brands, has created the number 1
powerhouse in golf. Together, these superstar brands achieved a
clean sweep at last month's U.S. Open, where winner Steve Jones
attained victory using a King Cobra Ti titanium driver, King
Cobra Oversize irons, a Titleist Bulls Eye putter, the Titleist
Professional ball, Foot-Joy shoes and a Foot-Joy glove. Hays
noted that "we expect these powerful golf brands to produce
excellent results for golfers and strong growth for our
shareholders in the years ahead.
"We have also invested over $500 million this year," he
added, "to reduce fully diluted shares by nearly 11 million, or
6%. This continues the aggressive steps initiated last year,
when we reduced fully diluted shares by more than 14%. Thus far
in 1996, we have repurchased 8 million shares of a previously
announced 10 million share repurchase authorization. The March
redemption of a convertible issue reduced fully diluted shares by
an additional 2.8 million.
"Even with the Cobra acquisition and substantial share
reductions, our total-debt-to-capital ratio at the end of June
remained at a very favorable 39%, giving us considerable
flexibility for the future.
"Most fundamentally, our array of great consumer brands
underlies our optimism. Eighteen brands generate annual sales
exceeding $100 million each. Our companies are investing
substantially in marketing, customer service and improved
productivity. These investments are enhancing the leadership of
these and our other great brands in markets around the world, and
are fostering the development of many promising and exciting new
products. We are deploying this powerful brand portfolio and our
tremendous financial resources to achieve our growth goal and
delight our shareholders."
Outlook
"Looking to the third quarter and the remainder of 1996,"
Hays stated, "we expect continued strong E.P.S. growth in spite
of challenging economic and competitive conditions in our
principal markets. Our expectation for 1996 as well as our long-
term goal -- assuming exchange rate stability and a satisfactory
economic and pricing environment -- is to generate E.P.S. growth
in the range of 10%."
Our 1996 growth expectation excludes one-time items: a
third quarter 1995 `gain on disposal of businesses, net' totaling
$20 million, or 10 cents per share (9 cents fully diluted), and a
fourth quarter 1995 pre-tax charge of $17.8 million, or 6 cents
per share, in connection with the reorganization of distilled
spirits.
With regard to the dividend, Hays noted that the dividend
paid per share has increased for 28 consecutive years. "Even
though the payout ratio is still high," he said, "the possibility
of a modest increase this year continues to be a matter of
thoughtful consideration for our Board."
Hays noted that American Brands has accomplished a massive
restructuring, focusing on brands that are leaders in their
categories. As part of that restructuring, the Company sold The
American Tobacco Company and has been indemnified by Brown &
Williamson and American Tobacco against any pending and future
product liability matters relating to American Tobacco's
business. With regard to the international tobacco brands of
U.K.-based Gallaher Limited, Hays remarked that "we were pleased
by last week's announcement by the Legal Aid Board for England
and Wales that it has denied an application on behalf of some 200
potential plaintiffs for legal aid to allow smoking-related
proceedings to be brought against cigarette manufacturers there.
"Overall," he said, "we are making solid progress in moving
towards our vision of being recognized as one of the most
successful consumer products companies in the world."
Brand Highlights
:::International Tobacco:::
Gallaher, the U.K. tobacco market leader, had another fine
quarter, with a 5% contribution increase in sterling (1% in
dollars) and a gain in U.K. cigarette market share.
Cigarette unit sales were up 1.9% for the six months in the
U.K., with a strong first quarter increase more than offsetting a
6.9% second quarter decline. Quarterly comparisons were affected
by a shift in trade buying patterns. Particularly strong year-to-
date performances were achieved by Benson and Hedges Superkings
(+6%), Silk Cut Ultra Low (+8%) and Mayfair (+66%). Sovereign
King Size from Benson and Hedges was launched at the beginning of
March and, after just four months, achieved a 1.2% share of the
total U.K. cigarette sales to consumers and 4% of the low-price
sector.
Gallaher's estimated overall share of U.K. consumer sales
has improved during 1996. The estimated share for June of 39.4%
was the highest since April 1995. While holding share in the
very profitable premium sector, Gallaher's brands also achieved
strong gains in the growing low-price sector.
Gallaher's share of the premium sector remained steady at
around 54%, reflecting the continued success of the Gratis gift
program for Benson and Hedges. The premium sector represented
about 49% of the total U.K. market for the half year, compared
with 50.8% a year earlier.
With the strong launch of Sovereign and excellent growth for
Mayfair, Gallaher's share of the low-price sector has risen
sharply from 6.5% in the fourth quarter of 1995 to 8% in the
first quarter and about 12% in the latest quarter. The low-price
sector has grown to over 27% of the total market for the six
months from around 24% a year earlier.
Export volumes were about flat for the six months, with a
12% gain in continental Europe offset by a decline in shipments
to the former Soviet Union (FSU). Sales of Benson and Hedges
American Blend, which was introduced in France early this year,
have been encouraging, and Gallaher is exploring opportunities
for the brand in other markets. Shipments to the FSU fell
sharply in the second quarter, due largely to market uncertainty
prior to the Russian Presidential election, following a strong
first quarter increase.
In the Republic of Ireland, where it is the market leader,
Gallaher achieved another record quarter, with sales,
contribution and market share all showing excellent growth.
Despite the market trend in the U.K. to lower price
cigarettes, Gallaher's operating margin (excluding excise taxes)
increased in both the quarter and six months, reflecting price
increases and effective cost control.
We expect continued solid contribution growth in sterling
and very strong cash flow from Gallaher's brands for the full
year.
:::Distilled Spirits::
Contribution from the distilled spirits brands was up 1% in
both the quarter and first half. These brands are now under a
single worldwide management structure, JBB Worldwide, and, in
connection with that integration, an extra month of operations
from Whyte & Mackay is included in both periods. While this
benefited second quarter and first half comparisons, it will have
an immaterial impact on full year results.
Sales were up in both periods, reflecting not only the
additional month at Whyte & Mackay but also the positive impact
of price increases, volume increases in certain markets and new
product introductions. Worldwide case volume increased 6% in the
quarter and 3% for the six months, reflecting the additional
month at Whyte & Mackay. Volume increases in international
markets offset a decline in North America. Even excluding the
additional month, international volume was modestly ahead for the
quarter and six months and mostly offset lower volumes in North
America.
North American margins are being enhanced by the
introduction of high margin products and aggressive price
increases on key products, including Jim Beam, the number one
bourbon in the world, and DeKuyper, America's leading cordial
brand. These steps are helping to fund further brand-building
programs. For the six months, marketing investment was up 18%
compared with a year ago.
After Shock, the highly successful cinnamon liqueur
introduced last year, continued to enjoy excellent consumer
acceptance. Avalanche Blue, a new peppermint liqueur, was
introduced in the second quarter and has also received
outstanding trade acceptance. Results also benefited from the
introduction of Cheri-Beri Pucker and Grape Pucker, which are
sweet-and-sour fruit flavored schnapps additions to the DeKuyper
cordial line. Largely as a result of these introductions,
overall DeKuyper volumes were up strongly in both periods.
Internationally, strong profit growth was achieved once
again in Australia, where Jim Beam is the top spirit brand.
Overall international profitability trailed last year's in both
periods as a result of higher spending to support the Whyte &
Mackay branded products in the U.K. Volume and profit from the
U.K.-based private label business exceeded last year's in both
periods, even excluding the additional month's results.
With ongoing efforts to improve margins on existing products
and to introduce new, higher margin products, we continue to
expect a small increase in distilled spirits contribution in
1996, even after adding back the one-time $17.8 million charge
taken in the fourth quarter of 1995.
:::Hardware and Home Improvement Products:::
The hardware and home improvement brands achieved record
sales, up 7%, in the quarter. Contribution was up 3%, with a
record for Aristokraft, which is number two in kitchen and bath
cabinets, and strong performances at Moen, the leader in North
American faucets, and Waterloo, the leader in tool storage.
Master Lock was negatively impacted by the timing of back-to-
school shipments and weakness in mass merchants, which are
becoming less committed to the hardware category and,
particularly, to premium-priced hardware products.
Net income increased substantially more than contribution,
benefiting from aggressive asset management. Inventories were
down 12% from a year ago.
The Decora line of semi-custom cabinets continues to set
monthly sales records as consumers take advantage of the
exceptional value offered in comparison to more expensive custom
cabinets. A joint venture to produce Moen faucets for the huge
Chinese market started production in January. Sales in China
have exceeded expectations, backed by a growing presence in Hong
Kong, Guangzhou, Beijing and Shanghai.
We anticipate strong contribution growth from these brands
in the third quarter, with results benefiting from the strength
in the housing market. We are hopeful for solid growth for the
full year, depending on market and competitive conditions.
:::Office Products:::
ACCO, the world leader in office supplies, posted another
excellent quarter. Sales were up 5% to a record, buoyed by
increases in both North American and international markets.
Contribution was up 13%. Excluding the 1995 divestiture of an
office furniture operation, adverse currency translation and
other factors, sales were up 10%, and contribution was up 9%.
Particularly strong growth was achieved in North America,
with comparable sales up 16%. Growth accelerated as the quarter
progressed, helped by a strong back-to-school sell-in.
International results were especially robust in Australia, where
ACCO is becoming a primary supplier to the consolidating customer
base. Locally owned superstores and U.S.-based contract
stationers have a significant and growing presence in Australia,
and ACCO is benefiting.
Raw material costs have generally stabilized and, in some
instances, softened, compared with significant increases during
1995, though there is still upward pressure in selected
categories. Reflecting continued emphasis on improving return on
assets, inventories are now down 15% from a year ago.
ACCO has been achieving sustained growth in contribution.
With their superior customer service, strong international
presence, excellent position with a consolidating customer base
and streamlined operating structure, we expect continued strong
performance and another excellent year.
:::Golf:::
Sales and contribution surged 37% and 53%, respectively,
reflecting the addition of Cobra, as well as continued excellent
performance by the Titleist, Pinnacle and Foot-Joy brands. Golf
products generated 16% of American Brands' consolidated
contribution in the first six months, compared with 11% a year
ago. All brands made excellent progress.
Golf ball unit sales were up 10% through mid-year, with
Titleist continuing to generate outstanding marketplace momentum.
Titleist remains, overwhelmingly, the #1 ball in golf with more
tour players, more wins and money won than all other golf balls
combined. In men's professional golf, Titleist has 64 wins on
the worldwide tours, more than four times its nearest competitor.
At the U.S. Open Championship, Titleist was the ball of choice of
124 of the 156 contestants, over 79% of the field. The new and
revolutionary Titleist Professional golf ball and the new
Titleist HP2 ball have each posted an impressive array of
tournament wins.
Titleist golf club sales were up solidly on the strength of
a 13% increase in DCI units. The DCI iron is the number 1 iron
with PGA club professionals, and Titleist was the third most
popular iron at the U.S. Open. Titleist by Scotty Cameron
putters have continued to post strong acceptance on the tour, and
putter unit sales were up 54% through mid-year.
Cobra, the leader in oversize irons, announced plans this
past week to introduce in September the next generation of King
Cobra oversize irons. Building on a more than four-year design
endeavor, Cobra is ready to launch a superior iron that plays
better, feels better, and creates longer, straighter golf shots.
Over one million shots were hit with prototypes to determine the
optimum launch angle, spin rate, trajectory, distance and the
best feel.
The already strong demand for the King Cobra Ti titanium
woods, introduced early this year, surged following Steve Jones'
win at the U.S. Open. More than 100,000 titanium clubs have now
been shipped. Earlier this month, Cobra announced that the in-
house titanium finishing operation had added 75 employees and was
running three shifts, six days a week, to meet the tremendous
demand. With this critical process in house, Cobra is achieving
significant savings and has overcome production delays that had
created an early bottleneck for Spring deliveries. In the latest
U.S. data on consumer sales, Cobra woods achieved share gains
both on-course and off-course, and Cobra irons were again the
number 1 choice.
The third superstar golf brand, Foot-Joy, again enhanced its
leadership. Golf shoe unit sales were up 5% through June. Foot-
Joy is the leader by a huge margin in the world of professional
golf, used by over 70% of the world's leading professionals. At
the U.S. Open, 115 out of the 156 players (74%) made Foot-Joy the
number 1 golf shoe for the 50th consecutive U.S. Open!
Overall, we expect substantial contribution growth
throughout 1996 from the golf brands, principally reflecting the
addition of Cobra but also reflecting continued excellent growth
from the Titleist, Pinnacle and Foot-Joy brands.
* * * *
Headquartered in Old Greenwich, Connecticut, American Brands
is an international consumer products holding company. Its
operating companies have powerhouse brands and leading market
positions. Major distilled spirits brands sold by units of JBB
Worldwide, Inc. include Jim Beam and Old Grand-Dad bourbons,
DeKuyper cordials and Whyte & Mackay Scotch. MasterBrand
Industries has leading hardware and home improvement brands
including Moen faucets, Master locks and Aristokraft cabinets.
ACCO World Corporation's major office product brands include Day-
Timer and Swingline. Acushnet Company's golf brands include
Titleist, Cobra, Pinnacle and Foot-Joy. Gallaher Limited sells
tobacco products internationally, principally in Europe, where
its major brands include Benson and Hedges and Silk Cut.
# # #
AMERICAN BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
June 30,
1996 1995 % Change
Net Sales $2,486.0 $2,594.7 (4.2)
Cost of sales 1,818.3 1,917.8 (5.2)
Advertising, selling, general
and administrative expenses 409.1 434.5 (5.8)
Amortization of intangibles 28.1 24.1 16.6
Interest and related expenses 44.6 40.1 11.2
Other (income) expenses, net (5.3) (8.9) (40.4)
Income Before Income Taxes 191.2 187.1 2.2
Income taxes 69.2 68.0 1.8
Income Before Extraordinary Items 122.0 119.1 2.4
Extraordinary items - (2.7) -
Net Income 122.0 116.4 4.8
Earnings Per Common Share
Primary
Income before extraordinary items $0.69 $0.63 9.5
Extraordinary items - (0.01) -
Net income $0.69 $0.62 11.3
Fully diluted
Income before extraordinary items $0.68 $0.62 9.7
Extraordinary items - (0.01) -
Net income $0.68 $0.61 11.5
Avg. Common Shares Outstanding
Primary 174.9 188.0 (7.0)
Fully diluted 178.9 195.6 (8.5)
AMERICAN BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share amounts)
(Unaudited)
Six Months Ended
June 30,
1996 1995 % Change
Net Sales $5,223.9 $5,387.2 (3.0)
Cost of sales 3,877.5 4,022.0 (3.6)
Advertising, selling, general
and administrative expenses 807.6 858.7 (6.0)
Amortization of intangibles 53.4 48.2 10.8
Interest and related expenses 90.0 86.1 4.5
Other (income) expenses, net (3.3) (16.0) (79.4)
Income Before Income Taxes 398.7 388.2 2.7
Income taxes 152.6 152.5 0.1
Income Before Extraordinary Items 246.1 235.7 4.4
Extraordinary items (10.3) (2.7) -
Net Income 235.8 233.0 1.2
Earnings Per Common Share
Primary
Income before extraordinary items $1.39 $1.23 13.0
Extraordinary items (0.06) (0.01) -
Net income $1.33 $1.22 9.0
Fully diluted
Income before extraordinary items $1.36 $1.21 12.4
Extraordinary items (0.06) (0.01) -
Net income $1.30 $1.20 8.3
Avg. Common Shares Outstanding
Primary 176.3 191.3 (7.8)
Fully diluted 182.4 201.1 (9.3)
(NOTES FOLLOW)
AMERICAN BRANDS, INC.
NOTES:
(1) Net sales by business segment are as follows (in millions):
Three Months Ended
June 30,
1996 1995 %Change
International Tobacco (a) $1,278.3 $1,334.0 (4.2)
Distilled Spirits (a) 337.1 315.3 6.9
Hardware & Home Improve. 335.4 312.2 7.4
Prods.
Office Products 271.4 259.0 4.8
Golf & Leisure Products (b) 263.8 192.4 37.1
2,486.0 2,412.9 3.0
Businesses Disposed (c) - 181.8 -
$2,486.0 $2,594.7 (4.2)
Six Months Ended
June 30,
1996 1995 %Change
International Tobacco (a) $2,961.1 $2,857.1 3.6
Distilled Spirits (a) 583.5 570.5 2.3
Hardware & Home Improve. 656.7 634.5 3.5
Prods.
Office Products 549.0 544.5 0.8
Golf & Leisure Products (b) 473.6 342.3 38.4
5,223.9 4,948.9 5.6
Businesses Disposed (c) - 438.3 -
$5,223.9 $5,387.3 (3.0)
Operating company contribution by business segment are as follows (in
millions):
Three Months Ended
June 30,
1996 1995 %Change
International Tobacco $102.7 $101.6 1.1
Distilled Spirits 56.9 56.5 0.7
Hardware & Home Improve. 50.9 49.6 2.6
Prods.
Office Products 15.6 13.8 13.0
Golf & Leisure Products (b) 56.6 37.0 53.0
282.7 258.5 9.4
Businesses Disposed (c) - 3.9 -
$282.7 $262.4 7.7
Six Months Ended
June 30,
1996 1995 %Change
International Tobacco $252.9 $250.4 1.0
Distilled Spirits 93.1 92.3 0.9
Hardware & Home Improve. 101.2 103.1 (1.8)
Prods.
Office Products 40.5 36.3 11.6
Golf & Leisure Products (b) 94.6 60.7 55.8
582.3 542.8 7.3
Businesses Disposed (c) - 5.9 -
$582.3 $548.7 6.1
AMERICAN BRANDS, INC.
NOTES (CONTINUED):
(a) Federal and foreign excise taxes included in net sales and cost of
sales are as follows (in millions):
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
International
Tobacco $987.3 $1,021.7 $2,300.0 $2,197.6
Distilled
Spirits 116.1 117.6 202.3 219.4
$1,103.4 $1,139.3 $2,502.3 $2,417.0
(b) In January 1996, the Company acquired Cobra Golf Incorporated for an
aggregate cost of approximately $715 million in cash, including fees
and expenses. These costs exceeded the fair value of net assets
acquired by approximately $650 million. Cobra's operations have been
included in consolidated results from the date of acquisition.
(c) Businesses Disposed includes the results of operations of nonstrategic
businesses, principally U.K.-based Retail distribution (Forbuoys sold
July 24, 1995) and Housewares (Prestige sold May 2, 1995).
(2) On March 5, 1996, the Company redeemed its $150 million 7- 5/8% Eurodollar
Convertible Debentures, Due 2001, at a redemption price of 103.8125% of the
principal amount plus accrued interest. On March 1, 1996, the Company
redeemed its $150 million 9-1/8% Debentures, Due 2016, at a redemption
price of 104.4375% of the principal amount plus interest. In connection
with the redemptions, the Company recorded an extraordinary items charge of
$10.3 million ($15.8 million pretax), or six cents per Common share, and
reduced the number of fully diluted shares outstanding by 2.8 million.
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. In connection with this exercise, the Company recorded an
extraordinary item charge of $2.7 million ($4.1 million pretax), or one
cent per Common share, and reduced the number of fully diluted shares
outstanding by 5.1 million.
AMERICAN BRANDS, INC.
NOTES (CONCLUDED):
(3) 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.
(4) This press release contains statements relating to future results which are
forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to changes in general economic
conditions, foreign exchange rate fluctuations, competitive product and
pricing pressures, the impact of excise tax increases with respect to
international tobacco and distilled spirits, regulatory developments, the
uncertainties of litigation, as well as other risks and uncertainties
detailed from time to time in the Company's Securities and Exchange
Commission filings.
AMERICAN BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
June 30, December 31,
1996 1995
Assets (Unaudited)
Current Assets
Cash and Cash Equivalents $114.4 $139.9
Accounts Receivable, Net 1,470.0 984.4
Inventories 1,338.5 1,840.2
Other Current Assets 235.9 199.5
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Total Current Assets 3,158.8 3,164.0
Property, Plant and Equipment, Net 1,138.3 1,137.3
Intangibles Resulting From
Business Acquisitions, Net 3,910.6 3,305.2
Other Assets 434.4 414.7
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Total Assets $8,642.1 $8,021.2
========= =========
Liabilities and Stockholders' Equity
Current Liabilities
Short-Term Debt $834.0 $297.4
Current Portion - Long-Term Debt 62.4 413.4
Other Current Liabilities 2,061.3 1,700.5
-------- --------
Total Current Liabilities 2,957.7 2,411.3
Long-Term Debt 1,465.4 1,154.6
Other Long-Term Liabilities 579.8 578.1
-------- --------
Total Liabilities 5,002.9 4,144.0
Stockholders' Equity 3,639.2 3,877.2
-------- --------
Total Liabilities and Stockholders' Equity $8,642.1 $8,021.2
========= =========
