Fortune Brands to Take Charge with Restructuring Charges and Ambitious Earnings Growth Plan
Fortune Brands Inc., the parent company of Jim Beam Brands Co., has unveiled a plan to cut costs, boost revenue, and improve sales of its major brands, including Moen faucets, Jim Beam bourbon, and Titleist golf equipment. The Old Greenwich, Conn.-based company expects to take larger-than-expected pretax restructuring charges of $295 million in 1997. The initiative is aimed at boosting earnings by 13 percent to 15 percent, with the first savings expected this year. Fortune Brands also expects to meet the expectations of 10 analysts surveyed by IBES International Inc., with 1997 diluted earnings per share of $1.48.
Key Takeaways:
- Fortune Brands will take pretax restructuring charges of $295 million in 1997, exceeding initial expectations.
- The company aims to boost earnings by 13 percent to 15 percent through cost-cutting, revenue growth, and improved sales of major brands.
- The first savings from the restructuring plan are expected in 1997.
- Fortune Brands expects to meet analyst expectations, with 1997 diluted earnings per share of $1.48, as predicted by 10 analysts surveyed by IBES International Inc.
- The company's major brands include Moen faucets, Jim Beam bourbon, and Titleist golf equipment.
- Jim Beam Brands Co., a unit of Fortune Brands, is a leading producer of spirits and beer.
- Baja International Inc., the owner of the Baja Beach Club, has signed a pact with Greenalls Restaurant and Pubs to license the Baja Beach Club concept in England, Scotland, and Ireland.
Statistics:
- $295 million: The pretax restructuring charges Fortune Brands will take in 1997.
- 13-15 percent: The expected increase in earnings resulting from the restructuring plan.
- $1.48: The expected 1997 diluted earnings per share, in line with analyst expectations.
- 10: The number of analysts surveyed by IBES International Inc. who predicted Fortune Brands' earnings.
- $1 billion: The annual sales of Greenalls Restaurant and Pubs, the British company licensing the Baja Beach Club concept.
Sources:
- Fortune Brands Inc. press release, Monday [no date provided]
- IBES International Inc. survey [no date provided]
- Baja International Inc. press release, Monday [no date provided]
- Greenalls Restaurant and Pubs [no date provided]