E-Malt.com News article: USA & Canada: Molson Coors Brewing Co. will post its first results on April 28: now analysts comments

Molson Coors Brewing Co. will report this week the company reports first-quarter earnings on Thursday, April 28. When Molson and Coors separately released results for the quarter ended Dec. 31, the numbers told a tale of two breweries. Coors' profit was up 54.4 %, while Molson's was down 59.4 %. Now Molson Coors Brewing Co. is to release its first results and investors are eager to see them.

Montreal-based Molson Inc. and Golden, Col.-based Adolph Coors Co. completed their so-called merger of equals Feb. 11, vowing to implement at least $175-million (U.S.) annually in cost savings.

David Hartley, an analyst with First Associates Investments Inc., doesn't think much of those savings will show up in results for the quarter ended March 27, according to the Globe And Mail. "I think it's early in the process for the company to achieve significant cost savings from their operations," said Mr. Hartley, who is looking for share profit of 24 cents in the quarter.

Analysts polled by globeinvestor.com are expecting a share profit of 37 cents, but the estimates vary from less than 20 cents to more than 50 cents. There are no easily comparable numbers for the year-earlier quarter, because this year's results will be consolidated and because the quarter is a few days shorter than last year.

UBS analyst Caroline Levy has selected Molson Coors as her "top pick," saying the company's share profit should grow by an average of 18 per cent a year over the next three years.

But Mr. Hartley expects first-quarter numbers to be hit by weak volumes in Canada and the United States and continued market share loss in Canada. The British business is strong, but the Brazilian operations have not performed well.

Investors will be looking for an update on Molson Coors' plans for Brazil, although the company is not expected to say whether it will divest its Brazilian operations until May at the earliest.

The company may also elaborate on its plans for Creemore Springs Brewery Ltd., which it acquired last week.


27 April, 2005