Unfortunately for whiskey enthusiasts, the troubled world economy strikes again! However, it’s good news for Brown-Forman, whose shares saw nearly a 4% raise yesterday. Still, it’s yet another blow to Facebook investors wanting to drink away their IPO sorrows.
Wed Jun 6, 2012
Brown-Forman to raise Jack Daniels prices globally
* Sees FY’13 EPS $3.60-$4; Analysts expected $3.98/shr
* Brown-Forman shares up 3.7 percent in afternoon trade
June 6 (Reuters) – Brown-Forman Corp said it expects to raise prices on its Jack Daniels whiskey and most of its other products this summer, helping to send its shares up nearly 4 percent.
For fiscal 2013, which began on May 1, Brown-Forman said it expects high single-digit sales growth, which takes into account Jack Daniels price increases of 3 to 5 percent, with slightly lower increases on its other brands, which include Finlandia vodka and Herradura tequila.
Brown-Forman forecast earnings per share of $3.60 to $4 for the full year, including an 11 cent-per-share hit from foreign exchange rates.
“This range takes into consideration the challenging macroeconomic environment, uncertainty surrounding the company’s planned price increases and foreign exchange fluctuations,” the company said in a statement.
Analysts on average were expecting $3.98 per share for the year, according to Thomson Reuters I/B/E/S.
For the just ended fourth quarter, Brown-Forman reported net income of $104.5 million, or 73 cents per share, down from $165.4 million, or $1.13 per share, a year earlier.
Analysts were expecting profit of 76 cents per share.
Net sales rose 1 percent to $801.3 million.