US-Fortune Brands CEO sees consumer strength

By Anupama Chandrasekaran

CHICAGO (Reuters) - The U.S. consumer is zooming ahead, contrary to data signaling weakening sentiment, diversified consumer products maker Fortune Brands Inc. (FO.N: Quote, Profile, Research, Stock Buzz) Chief Executive Norm Wesley told Reuters on Monday.

"I think the consumer has been in remarkably good shape and we haven't seen any impact to date," Wesley said, speaking at the Reuters Food Summit in Chicago.

Recent reports on consumer expectations have been disappointing with both the University of Michigan's consumer sentiment data and the Conference Board's index of consumer confidence coming in weaker than expected in February.

But U.S. liquor group Fortune Brands Inc. (FO.N: Quote, Profile, Research, Stock Buzz), which also makes golf equipment and home products such as Moen faucets and MasterBrand cabinets, is not witnessing weakness.

"Repair and remodel tends to lag existing home sales," Wesley said. "We had record existing home sales last year and the year before that and the year before that. So we think we have a pretty good backlog on the repair remodel side of the business, which will be good for us this year."

Fortune Brands' spirits business is also gaining at the expense of the U.S. beer industry, which has suffered in recent years as consumer tastes have shifted toward cocktails and wine.

For the first quarter, the company recently affirmed its forecast for earnings per share before charges and gains to be up by mid- to high-single digits, including the impact of stock options expensing.

Fortune Brands has also reiterated that full-year profits on a per-share basis will grow in double digits. This outlook too is before charges and gains but includes options expense of about 18 cents a share.

Wesley added that although there had been some concern about the performance of the home products business amid fears of a meltdown in the housing market, there's been no pressure from shareholders to split the businesses.

"No, I am not getting any pressure from investors to split the company," Wesley said. "Our breadth has worked well for us."

"A little bit of what we're seeing right now is people are anxious about the home side of the business but that too will change and when it does we will get paid for the work that we are doing," the chief executive said.