Foster's Group Ltd, Australian beer and wine maker said on October 27 that strong domestic beer sales were offsetting poor conditions in North America, where an economic downturn and grape glut have led to greater competition from cut price wine. Foster’s forecast on October 27 a flat half-year profit due to weaker margins in its U.S. wine business and said tough business conditions would last for the full year. "We have not as yet seen any noticeable recovery in this market and the factors adversely affecting second-half 2002/03 margins, namely product mix, higher costs and increased promotional expenditure, have influenced performance in the first months of 2003/04," said Ted Kunkel, Foster's chief executive.

Foster's expected to generate gross proceeds of A$1.4 billion ($979 million) from the float of its Australian Leisure and Hospitality pubs arm, and said it planned to return funds to shareholders, in the absence of acquisition opportunities.

29 October, 2003