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Fortune Brands, Inc., 300 Tower Parkway, Lincolnshire, IL 60069
Contact:
Media Relations: Investor Relations:
Clarkson Hine Anthony J. Diaz
(847) 484-4415 (847) 484-4410
FORTUNE BRANDS PROJECTS DELIVERING
ON EPS GROWTH GOAL FOR 2000
Expects Fourth Quarter EPS of 71 Cents Before Charges
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Miami, FL, January 9, 2001 - Fortune Brands, Inc. (NYSE: FO), a leading consumer
brands company, today announced that it expects to achieve its year 2000 target
for solid double-digit earnings per share growth when it reports full-year
results on January 25th.
In remarks prepared for delivery today at the annual Goldman Sachs consumer
products conference in Miami, Fortune Brands Chairman & Chief Executive Officer
Norm Wesley said that preliminary data indicates year 2000 earnings before
charges will grow to $2.29 per diluted share, or up 15% from $1.99 a year ago.
Diluted earnings per share before charges for the fourth quarter are expected to
be 71 cents, up 6% from 67 cents in the year ago quarter.
"We are pleased that, based on our preliminary information, Fortune Brands will
deliver on the solid double-digit earnings growth goal for 2000 that we set a
year ago," Wesley said. "The strength of our leading consumer brands, supply
chain initiatives and shareholder value-driven strategy combined to produce
solid fourth quarter results, even with the challenges of adverse foreign
exchange rates, higher borrowing costs, a moderating housing market and a softer
retail sales environment. While these challenges will clearly carry over into
the new year and impact results, especially in the first half, we expect another
record year in 2001. Our long-term goal remains double-digit growth in earnings
per share, but the current economic environment makes that an ambitious
objective for the year ahead."
Wesley also announced that the company is progressing its evaluation of
strategic options for its office products business. In accordance with the
company's accounting policy, implemented in 1999, that evaluates goodwill on a
discounted cash flow basis, fourth quarter 2000 results will include a non-cash
goodwill write-off of approximately $500 million related to the office products
unit. The non-cash charge will have the effect of reducing goodwill amortization
in 2001 by approximately $15 million pre-tax, or approximately 9 cents per
share.
(more)
www.fortunebrands.com
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Fortune Brnads Projects Delivering on EPS Growth Goal for 2000
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Wesley further announced that the company completed its entire 10 million share
repurchase authorization in 2000. Combined with the 11 million shares
repurchased in 1999, Fortune Brands has reduced shares outstanding by more than
12% in the past two years.
Fortune Brands plans to release its year 2000 results on Thursday, January 25th,
2001.
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Fortune Brands, Inc. is a consumer products company with annual sales exceeding
$5.5 billion. Its operating companies have premier brands and leading market
positions in home and hardware products, office products, golf equipment and
spirits and wine. Home and hardware brands include Moen faucets, Aristokraft and
Schrock cabinets, Master locks and Waterloo tool storage sold by units of
MasterBrand Industries, Inc. Office brands include Day-Timer, Swingline,
Kensington and Wilson Jones sold by units of ACCO World Corporation. Acushnet
Company's golf brands include Titleist, Cobra and FootJoy. Major spirits and
wine brands sold by units of Jim Beam Brands Worldwide, Inc. include Jim Beam
and Knob Creek bourbons, DeKuyper cordials, Whyte & Mackay Scotch and Geyser
Peak and Canyon Road wines. Fortune Brands, headquartered in Lincolnshire,
Illinois, is traded on the New York Stock Exchange under the ticker symbol FO
and is included in the S&P 500 Index.
To receive company news releases by e-mail, please visit www.fortunebrands.com.
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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. Readers are cautioned that these forward-looking
statements speak only as of the date hereof. 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, changes in interest rates, competitive product and
pricing pressures, trade consolidations, the impact of excise tax increases with
respect to distilled spirits, regulatory developments, the uncertainties of
litigation, changes in golf equipment regulatory standards, the impact of
weather, particularly on the home products and golf brand groups, expenses and
disruptions related to shifts in manufacturing to different locations and
sources, challenges in the integration of acquisitions and joint ventures, risks
associated with the Company's implementation of strategic options for ACCO World
Corporation, as well as other risks and uncertainties detailed from time to time
in the Company's Securities and Exchange Commission filings.
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