Fortune Brands, Inc. Q4 2008 Earnings Call Transcript

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2009-01-29 14:13:14.0

Tags: Call Transcript, Earnings, Morgan Stanley, Fortune Brands Inc., Construction, Retail, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator instructions) Our first question comes from the line of Gregory Malik with Morgan Stanley. Okay, Mr. Malik, your line is open. Sorry for the delay.

Gregory Malik – Morgan Stanley

Hi. Can you hear me all right?

Bruce Carbonari

Yes.

Gregory Malik – Morgan Stanley

Great. I have one question on Home and one on Golf. On the Home side, did you tell us about the quarter – what you think the difference was between new construction and if you will, the retail trade or repair model or give us some sense of that and then your outlook.

Bruce Carbonari

Sure. What we saw in the fourth quarter was pretty much in the new construction market staying at pretty much the same level as it had been traveling before. But really, the difference was in the remodeling and repair side of the business. Most of the high ticket discretionary remodeling projects slowed down. We saw that in our cabinet business and some of our window businesses as well.

Gregory Malik – Morgan Stanley

Okay, so it was more – you'd think it was the mix that really drove it more than volume; the volume was bad but the mix are more.

Bruce Carbonari

The mix between remodeling and new construction, yes.

Gregory Malik – Morgan Stanley

Okay, great. And then on the Golf side, you mentioned that sell in of the new clubs helped in the fourth quarter. How much was that in dollar amounts?

Craig Omtvedt

That is not something we would quantify for competitive reasons, but it was a benefit. But I think the important message here is the fact that we did indeed see some slowdown in consumer discretionary spends, along with a takedown of inventories by a number of retailers to kind of lean out and protect their cash positions.

Gregory Malik – Morgan Stanley

Okay, great. Thanks a lot.

Operator

Our next question comes from the line of Eric Bosshard from Cleveland Research. Your line is open.

Eric Bosshard Cleveland Research

First question on Spirits. Can you talk a little bit about – you mentioned a relatively solid spirits market, but then you also mentioned a bit of a mix shift down as you ended the year. Can you talk a little bit more about the mix shift and the impact that it could have on share; and then secondly, just your ability to get price in the spirits category in 2009, your thoughts there.

 

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