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No. of Recommendations: 0
Fortune Brands $33.39

10K 2008
Revenues $7608.09 million or $49.50 per share compared to $8563.1 million or $54.72 per share last year
Earnings per share $2.02 compared to $4.79 last year
Diluted number of shares 153.7 million
Dividends $1.72 per share
Cash $163.30 million down from $203.70 million in 2007
Debt $5491 million compared to $4373.7 in 2007
CFFO $660.50 million from $767.50 in 2007
CFFO per share $4.30
Trading range 12/31/08 to 4/20/09 was $39.61 to $17.86
PE range 19.61 to 8.84
PS ratio range .8 to .36
Theoretical dividend range 10.85% to 24.06%

I still enjoy owning FO it has good positive cash flow even in these troubling times. The 3 teir bussiness of FO has alowed it to stay competive even as one of it's lines has seen a large drop in sales. FO's Home and Hardware saw a 17.4% decline. However, it's spirits (4.6%) and golf (2.6%) saw only small declines.

The operating income from spirits helped to offset loses in the Home and Hardware troubles. While home and hardware saw a operating loss of $465.6 million the spirits division saw a income of $543.7 million with golf coming in with $125.3 million.

FO issued a dividend of $1.72 last year up from 2007's $1.62 and 2006's $1.50. This dividend is a great reason to hold on to this great company.

The company does have a large amount of debt. This debt is broken down as follows:
$419.4 million in 3.5% notes due in 2009
$790 million due in 2010 as part of a $2 billion revolving credit agreement
$750 million in 5.125% notes due in 2011
$699.1 million in 4% notes due in 2013
$300 million in 4.875% notes due in 2013
$1735.1 million due 2016-2036
I see no reason that FO cannot pay its debt obligations as they come due.

Clay L.
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