USA: Boston Beer expects glass bottle recall costs to hurt 2008 profit

Boston Beer Co. Inc., which brews Sam Adams-brand beers, said costs and lost sales associated with a recall of glass bottles in April will lead to lower-than-expected profit in 2008, according to The Associated Press, May 6.

The company reiterated its previous earnings guidance, saying it still expects earnings between $1.70 and $2 per share, if the impact of a voluntary recall of some of its glass bottles is excluded.

But if the impact of the recall is included, the company estimates its will report earnings between $1.15 and $1.45 per share for the year.

Analysts polled by Thomson Financial expect earnings per share between $1.80 and $1.85 in 2008. Analyst estimates typically exclude one-time charges.

07 May, 2008