Los Angeles, June 30 - Fortune Brands Inc lowered its second-quarter and full-year forecasts on Monday, citing the U.S. housing slump, weakening consumer sentiment and an unexpected Australian tax hike, sending its shares down 5.5 percent.
The company, which sells consumer products ranging from bourbon and golf balls to windows and faucets, said it now expects second-quarter earnings from continuing operations to decline in the high teens to the mid-20s in the percentage terms.
It previously expected a decline in the high single digits to mid-teens from its year-earlier quarterly profit of $1.51 a share, excluding items.
Analysts polled by Reuters Estimates looked for second-quarter earnings of $1.36 a share, a decline of 10 percent. The company continues to expect results in the second half of 2008 to be better than those in the first half.
Fortune now sees 2008 earnings before items falling in the high single digits to high teens, compared with 2007 earnings of $5.06 per share.
Fortune previously expected 2008 earnings to be flat to down in the high single digits.
Analysts, on average, looked for 2008 earnings to fall a little more than 5 percent to $4.80, according to Reuters Estimates.
In late April, the Australian government increased the tax on ready-to-drink spirits products by 70 percent. The company said as a result it increased consumer prices on its Jim Beam ready-to-drink products by 25 percent.
Fortune shares, which closed up 4 cents to $62.41 on the New York Stock Exchange, fell 5.5 percent to $59 in extended trade.