Reuben Mark Expect Quotations

Operating profits will be up nicely. We expect another good quarter, with unit volume up in every operating division, solid upward movement in gross profit margin and a worldwide increase in advertising support.

Despite sharply rising energy costs, we expect our gross profit margin, before restructuring charges, to be up nicely for the year as a result of our ongoing cost-savings initiatives, improved pricing, restructuring and promotional savings.

We project double-digit earnings, and our expectation is we will be there for the year, wherever oil settles, because if it goes out of sight, our expectation is that we will be able to raise prices. Beyond that, we are less dependent on oil than many.