E-Malt.com News article: USA: Anheuser - Busch to report 3Q 2006 earnings on October 25 at 4:00 p.m.

Anheuser-Busch Companies' third quarter 2006 Earnings Conference Call will be broadcast live via webcast on Wednesday, October 25, at 4:00 p.m. Eastern Time, the company said.

Citing the Associated Press, Huston Chronicle published October 23 a summary of key developments and analyst opinion related to the period.

Overview:

Anheuser-Busch is one of the world's largest brewers and the maker of Budweiser and Bud Light, among other beers. The company in September said beer industry volume grew 2.7 percent year-to-date through July, but the company expected moderation of volume during the second half of the year. Anheuser-Busch sales to wholesalers rose 3.2 percent year-to-date through July. Through Labor Day, sales to retailers were up 1.3 percent.

Anheuser-Busch this quarter said August A. Busch IV would succeed Patrick Stokes as president and chief executive, effective Dec. 1. Stokes, 64, had helmed the company since July 2002. Busch had been president of the U.S. brewery unit of Anheuser-Busch. Stokes will become chairman of the board. The move puts a Busch family member back in charge of the company.

In August, Anheuser-Bush executives said they sold more than $24 million of company stock.

Meanwhile, rival brewer Heineken NV, based in the Netherlands, in September said its profit grew 26 percent during the first half of the year, helped by strong U.S. sales and increased beer drinking in Europe during the World Cup in the summer.

By the numbers:

Analysts expect a profit of 81 cents per share on revenue of $4.24 billion, according to a Thomson Financial poll.

Analyst take:

In a recent note, Morgan Stanley analyst William Pecoriello said he remains cautious on Anheuser-Busch because third-quarter volume deteriorated "significantly" as the quarter progressed.

"We believe third-quarter earnings will be fine (we are a penny above consensus based on sales to wholesalers ahead of sales to retailers) but we see risk to fourth quarter and 2007 consensus estimates," Pecoriello wrote. "With volume likely down in the fourth quarter, the question will be 2007 earnings and how much spending and promos will be up and how much volume will potentially be down."

He rates Anheuser-Busch "Equal weight."

Meanwhile, Bear, Stearns & Co. analyst Carlos Laboy, said he expects Anheuser-Busch will post "constructive" results on better pricing, some volume growth and a more favorable commodity environment.

However, "we have growing concerns about top-line growth in the quarter," he wrote in an Oct. 16 note. "Management already conceded that volumes have softened."

He added that sources have told him September volumes were soft, especially in the Northeast.

He affirmed his "Peer Perform rating.

What’s ahead:

In an effort to tap into growing sectors of the industry, such as craft beer, the company is introducing a limited-time chocolate beer for its Michelob Celebrate line, as well as a line of pumpkin ale for the fall and vanilla-flavored bourbon ale for the winter.

Stock performance:

Anheuser-Busch stock increased about 4 percent during the quarter, and is up about 11 percent for the year. It reached its 52-week high during the quarter, hitting $50 on August 29.


25 October, 2006