Earning season has begun for golf

Fortune Brands, Inc. (FO:NYSE), a consumer brands company announced sales of $1.3 billion, 4 percent lower than last year's levels. The company sited the lower sales were due primarily to weak economic conditions in North America. Its operating company contribution was $161 million, down 12 percent due principally to lower sales, resulting adverse operating leverage, and unfavorable foreign exchange rates. Operating company contribution is net sales less all costs and expenses other than restructuring and other nonrecurring charges, amortization of intangibles, corporate administrative expenses, interest and related expenses, other (income) expenses along with net and income taxes.

The company's golf segment, composed of Titleist, Cobra, FootJoy and Pinnacle brands, reported sales of $254.2 million, 4 percent lower than the $264.8 million it saw in the first quarter of 2000. Its golf products has an operating company contribution of $33.5 million a decrease of 12.3 percent from its $38.2 million in the first quarter of 2000.

Fortune Brands owns and operates several premier brands in home and hardware products, office products, golf equipment and spirits and wine. Some of the brands that it owns include: Moen faucets, Aristokraft and Schrock cabinets, Master locks and Waterloo tool storage sold by units of MasterBrand Industries, Inc. 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.