Acushnet Co., the golf division of Fortune Brands, reported sales in the first quarter fell 12.5% to $347.0 million from $396.4 million a year ago. Operating earnings after charges for the group, which includes Titleist, Cobra and FootJoy, tumbled 82.5% to $9 million from $51.5 million. Before charges, earnings were off 32.6% to $34.7 million from $51.5 million.
Commenting on Asushnet, Bruce Carbonari, chairman and chief executive officer of Fortune Brands, said, “New products, international sales growth in constant currency, and lower costs partly offset the impact of reduced consumer discretionary spending, lower corporate custom golf ball orders and adverse foreign exchange.”
Overall, Fortune Brands reported sales fell 20% to $1.44 billion, reflecting the impact of the challenging economic environment and adverse foreign exchange. Net income fell 93% to $8.9 million, or 5 cents a share, from $126.7 million a year ago. Factors driving down results include the lower sales, adverse foreign exchange, negative operating leverage in the seasonally smallest quarter for home products, and charges for supply-chain initiatives. Excluding one-time items, EPS before charges/gains was 30 cents a share as higher operating income before charges in the spirits business and lower cost structures tempered the impact of the sustained
Fortune Brands's Beam Global Spirits & Wine, Inc. includes Jim Beam and Makers Mark bourbon, Sauza tequila, Canadian Club whisky, Courvoisier cognac, Cruzan rum, Teachers and Laphroaig Scotch, and DeKuyper cordials. Home and hardware brands include Moen faucets, Aristokraft, Omega, Diamond and Kitchen Craft cabinetry, Therma-Tru door systems, Simonton windows, Master Lock security products and
