On Friday, Jan. 26, Fortune Brands (NYSE:FO) released fourth-quarter and year-end results for the period ended Dec. 31, 2006. Here are the quick-and-dirty details for the quarter.

  • See the full analysis on Fortune Brands here.
  • Sales grew 16.2% to $2.3 billion, including acquired brands.
  • Total diluted earnings grew 38.5%, due in part to a $0.31-per-share tax benefit that was offset by a $0.08-per-share restructuring charge. Excluding these one-time items, earnings grew 14%.
  • Free cash flow came in at $294 million, slightly above reported net income.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2006

Q4 2005

Change

Sales

$2,240

$2,276

$1,959

16.2%

Net Profit

--

$252

$176

43.1%

EPS

$1.35

$1.62

$1.17

38.5%

Diluted Shares

--

156

151

3.3%

*Three months ended December 31, 2006 and 2005.

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

49.60%

45.88%

3.72

Operating Margin

16.75%

15.58%

1.17

Net Margin

11.06%

8.98%

2.08

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$171

$94

82.4%

Accounts Rec.

$1,213

$1,116

8.7%

Inventory

$2,166

$1,663

30.2%



Liabilities

Q4 2006

Q4 2005

Change

Long-Term Debt

$5,035

$4,890

3.0%



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

Cash From Ops.

$386

$198

$188

Capital Expenditures

$92

$65

$27

Free Cash Flow

$294

$133

$161
*Three months ended December 31, 2006 and 2005.

Find out why Fools always follow the money.

Comparable companies:

  • Diageo (NYSE:DEO)
  • Brown-Forman (NYSE:BF-B) (NYSE:BF-A)
  • Constellation Brands (NYSE:STZ)
  • Masco (NYSE:MAS)
  • Callaway Golf (NYSE:ELY)

Related Foolishness:

Diageo is a Motley Fool Income Investor selection. To see what other great dividend-paying companies have been recommended to subscribers of the market-beating newsletter, take a free 30-day trial today.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann is long shares of Diageo but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.