Jack Daniel's Maker to Hike Prices

Jack Daniel's parent Brown-Forman Corp reported a weaker-than-expected quarterly profit on Wednesday and narrowed its full-year forecast, hurt by weak sales and margin pressure.

But the company, whose pricing power was hurt in the recession's aftermath, said the time was becoming right for price increases, as a fragile recovery was leading some consumers to again buy premium alcoholic drinks.

Shares of Brown-Forman, which also makes Finlandia vodka and Southern Comfort flavored whiskey, were down less than 1 percent at $79.59 in morning trading.

Net income fell to $133.1 million, or 93 cents per share, in the company's fiscal third quarter that ended on Jan. 31, from $140.7 million, or 96 cents per share, a year earlier.

Net sales slipped 0.4 percent to $959 million.

Analysts on average were expecting earnings of $1 per share and sales of $1 billion, according to Thomson Reuters I/B/E/S.

But excluding the impact of items such as currency exchange and its exit from a wine business, sales rose 7 percent.

Brown-Forman cited strong gains in the German, Russian and Canadian markets, compared with weaker performances in markets such as China and Greece.

The company said it now expects full-year earnings of $3.50 to $3.65 per share, compared with a prior forecast of $3.45 to $3.70 per share. Analysts on average had been expecting $3.65 per share.

For the current fourth quarter, the company said it expects high single-digit growth in net sales and operating income.