Brown-Forman Corp. (BFB: chart) posted Friday a rise of 14% in fourth-quarter net income driven by strong sales of spirits such as Jack Daniel's and Southern Comfort.

The Louisville, Ky.-based company reported a quarterly profit of $58.2 million, or 90 cents a share, up from $51.2 million, or 75 cents a share, a year earlier. The latest results included 2 cents a share in expenses for a business-improvement program launched in mid-2001, compared with 10 cents a share in costs in the year-ago period.

Analysts polled by Thomson First Call had expected earnings of 91 a share for the quarter.

Total sales too came in ahead of analysts' predictions, at $571.4 million. This was above year-ago sales of $527.2 million.

More specifically, sales of wine and spirits rose 11% to $446.1 million from $401.5 million in the same quarter last year. Strength in spirits sales offset weakness in the company's wine business, which suffered from higher costs and a 'very competitive pricing environment.' However, the company expects cost cuts to improve results of its wine business in fiscal 2004.

Meanwhile, sales of consumer products such as fine china, tableware and luggage edged down to $125.3 million from $125.7 million a year ago.
For full of 2003, net income rose 8% to $245.3 million from $227.8 million last year, whereas the company's per-share profit was up 9% $3.63 a share from $3.33 a share.

In March, Brown-Forman completed a share-buyback program, which added about 3 cents to its annual profit. Moreover, the repurchase of 7.9 million shares is expected to add another 30 cents a share to earnings in 2004.

Annual sales amounted to $2.38 billion, up 7% from $2.22 billion.
Looking ahead, the company said it expects to earn $4.10 to $4.30 a share for fiscal 2004, which started on May 1, 2003. Analysts look for full-year earnings of $4.29 a share.

The company's 'A' listed stock advanced 25 cents, or 0.31%, to close at 80.50 in regular trading on the New York Stock Exchange (NYSE: chart). Its 'B' listed shares ended the trading day up 38 cents at 78.86.

Shares of Duke Energy Corp. (DUK: chart) rose 2.27% Friday after the company reaffirmed its 2003 earnings outlook and dividend rate. The Charlotte, N.C.-based utility company said it expects earnings before items of $1.35 to $1.60 a share in 2003. Analysts polled by Thomson First Call have been calling for a profit of $1.42 a share.

Duke Energy also reaffirmed its support for an annual dividend of $1.10 a share. Additionally, the company said it has infused $900 million into its investment arm Duke Capital in 2003.

Shares of Duke ended up 43 cents at 19.38 after the news.

Generic pharmaceutical company Eon Labs Inc. (ELAB: chart) said that it would match its earlier earnings forecast for the current second quarter and next year.

The company sees second-quarter earnings coming at 29 to 32 cents a share on sales of between $70 million and $75 million.

For the full year, Eon Labs expects to earn between $1.18 and $1.23 a share on sales of between $285 million and $300 million.

After the announcement, the stock rallied 2.23, or 8.25%, to finish at 29.25 on the Nasdaq Stock Exchange.

The Week Ahead

Earnings reports will be light this week with no major companies releasing results. The Institute for Supply Management is on tap Monday with its survey on the state of the nation's industrial sector during May.

Investors will focus on clinical updates produced by biotechnology companies at the ongoing annual meeting of the American Society of Clinical Oncology (ASCO: chart), which is taking place in Chicago, Illinois. Amgen Inc. (AMGN: chart) and Genentech Inc. (DNA: chart) are among the most closely watched companies to provide new data.