Amadeusz Juskowiak

Brownforman bfdb sets stock split ups payout

BrownForman Inc said its board has approved a threefortwo stock split and a 35 pct increase in the company cash dividend

The company cited its improved earnings outlook and continued strong cash flow as reasons for raising the dividend

BrownForman said the split of its Class A and Class B common shares would be effective March 13

The company said directors declared a quarterly cash dividend on each new share of both classes of 28 cts payable April one to holders of record March 20 Prior to the split the company had paid 31 cts quarterly

BrownForman today reported a 37 pct increase in third quarter profits to 216 mln dlrs or 100 dlr a share on a seven pct increase in sales to a record 337 mln dlrs

BrownForman said nine month profits declined a bit to 660 mln dlrs or 307 dlrs a share from 662 mln dlrs or 308 dlrs a share a year earlier due to a second quarter charge of 37 cts a share for restructuring its beverage operations

The company said lower corporate tax rates and the restructuring are expected to substantially improve BrownFormans earnings and cash flow in fiscal 1988

Reuter