Brown-Forman posts higher profit; raises view

NEW YORK (Reuters) - Alcoholic beverage maker Brown-Forman Corp (BFb.N) posted higher quarterly profit and raised its outlook for the current fiscal year on Tuesday, saying sales comparisons should ease as the year progresses.

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Still, the maker of Jack Daniel's whiskey and Southern Comfort said it remains concerned about the impact of heightened competition in the drinks industry and consumers trading down to less expensive drinks and dining out less frequently.

The company said net income rose to $147.3 million, or 99 cents per share, in its fiscal second quarter, ended on October 31, from $143.2 million, or 94 cents per share, a year earlier.

Sales fell 4.5 percent to $892.9 million.

The company said sales trends for many of its key brands improved slightly in the second quarter compared to the first, and that comparisons would ease in the latter part of the year.

In the six months ended October 31, sales growth of Jack Daniel's, Gentleman Jack, el Jimador tequila and ready-to-drink beverages was offset by declines for Finlandia vodka and Southern Comfort.

By region, sales increases in Australia, Germany and France were offset by declines in Poland, the United States and South Africa, the company said.

Brown-Forman said it expects to earn $2.95 to $3.15 per share in fiscal 2010, up from its earlier forecast of $2.60 to $3.00 per share. It expects operating income to grow at a low-to-mid-single digit rate.