USA, New York: Adolph Coors Co. said on April 22 quarterly profit rose despite declining sales volume in its largest market as the company recovered from a snow storm that delayed some shipments in the year-ago quarter, according to Reuters. The volume numbers were expected in a weak beer market that has suffered as consumers drink more wine and distilled spirits. Coors is hoping to win back some health-conscious consumers with its newly introduced Aspen Edge low-carb beer.

"Cost savings initiatives and strong industry pricing have protected the profit and loss statement from U.S. volume declines in 2003," Credit Suisse First Boston analyst Andrew Conway said in a research note. "We remain concerned about Coors Light share losses." A strengthening U.S. dollar could hurt profit growth in the second half of the year, said Conway who has a rating of "neutral" on the company's stock.

The company reported first-quarter profit of $4.8 million, or 13 cents a share. A year ago, Coors said first-quarter profit was $806,000, or 2 cents a share. Analysts were expecting the company to earn between 6 cents and 30 cents a share, with a mean estimate of 15 cents, according to Reuters Research, a unit of Reuters Group Plc.

The company's first-quarter gross sales rose to $1.23 billion from $1.10 billion. Net sales, which include the effect of excise taxes, rose to $923.5 million from $828.1 million. Volume rose 1.8 percent during the quarter, overcoming a 0.2 decrease in sales volume in its Americas segment. Shares of Coors fell $1.48 to $66 in late morning trade on the New York Stock Exchange.

23 April, 2004