Fortune Brands profit falls but tops lowered view

By Martinne Geller

NEW YORK (Reuters) - Fortune Brands Inc (FO.N) reported a quarterly profit that topped Wall Street's lowered expectations on Friday, after the consumer products maker had warned that weak consumer sentiment, the U.S. housing slump and higher taxes would depress earnings more than expected.

The maker of Jim Beam bourbon, Moen faucets and Titleist golf equipment said second-quarter net profit fell 41 percent to $136 million, or 88 cents per share, from $232 million, or $1.48 per share, a year earlier.

The results include a $60 million charge for items such as a write-down of the company's door business due to the housing slowdown.

Excluding special items, earnings were $1.25 per share, beating the analysts' average forecast of $1.20, according to Reuters Estimates.

Fortune also affirmed its full-year earnings outlook, raised its divided 5 percent and said it bought back a 10 percent stake in its spirits business owned by Sweden's Vin & Sprit [VSG.UL] for $464 million.

Its shares, which at Thursday's close were down 19 percent this year, were little changed on Friday.

Investor enthusiasm was probably muted as weakness across the company's portfolio drove operating earnings down 24 percent, according to Goldman Sachs analyst Judy Hong.

"We are neutral on the stock as we expect continued housing weakness and soft spirits results will be overhangs, but valuation is undemanding here," Hong wrote in a research note, adding that commodity cost inflation and debt reduction were also ongoing challenges.