E-Malt.com News article: 1001

The US beer giant Adolph Coors Company announced on April 29 2003 lower net income and earnings per share for the first quarter of 2003 on higher consolidated net sales, compared to the same period a year ago. For the 13-week quarter ended March 30, 2003, the company's net sales increased 11.0% from the first quarter 2002. First quarter 2003 sales volume increased 6.3% compared to a year ago. Higher net sales and volume in the quarter were primarily attributable to an additional five weeks of results this year from the Coors Brewers Limited (CBL) business, which was purchased on Feb. 2, 2002. The company reported net income of $0.8 million, or $0.02 per share, for the 2003 first quarter, down from net income of $27.2 million in the first quarter of 2002.

Peter H. Coors, company chairman, said, "Although consumer demand for our brands was encouraging on both sides of the Atlantic during the first quarter of 2003, our financial results for the quarter reflect challenges in several key areas of our business. Our main challenges were widely anticipated, including higher interest and pension expense, a seasonal loss for the first five weeks of the year in our U.K. business, and reduced profits related to lower Americas shipments to wholesalers in the first quarter.”

W. Leo Kiely III, president and chief executive officer, said: "The first quarter of this year was even tougher than we thought it would be. However, despite a challenging start to the year, we believe that the first quarter is not indicative of our potential for this year."

Americas segment net sales decreased 3.3% compared to the first quarter 2002. First quarter 2003 sales volume totalled 4,905,000 US barrels, or 5,756,000 hectolitres, a 4.4% decrease from 2002. Americas distributor sales to retail increased about 0.8%, while US domestic sales to retail increased approximately 1.4%, versus the first quarter of 2002. Pretax income in the segment declined 37.8% to US$26.7m.

Europe Segment Results Europe segment net sales increased 50.1% in the first quarter of 2003 because of the timing of the CBL acquisition in 2002 and favorable currency exchange rates compared to the first quarter of last year. First quarter 2003 sales volume of owned and licensed beverage brands totalled 2,013,000 U.S. barrels (2,362,000 HLs), up about 4% from pro forma volume a year ago.

The investment bank Credit Suisse First Boston has raised its rating on the US brewer Adolph Coors Co. (RKY.N) to "neutral" from "underperform". The bank's analysts said they did not believe the company's profits will be "re-based downwards" through the year.


06 May, 2003