Molson CoorsNo better time to look for new business opportuntities then when your existing business stagnates...
Molson Coors misses on weaker sales and underlying profits in the U.S.
MONTREAL — Molson Coors Brewing Co. missed expectations as its global sales and underlying profits decreased during the winter quarter largely because of lower sales volumes of beer in the United States.
The Denver and Montreal-based company says its sales fell 4.8 per cent to US$2.33 billion in the first quarter compared to the prior year quarter.
Sales in the U.S., which account for more than 70 per cent of global revenues, were down 5.8 per cent.
Canadian sales decreased 2.5 per cent to US$283.8 million. They were also down in Europe and international markets.
Net earnings attributable to shareholders were US$278.1 million or $1.28 per diluted share, compared with US$208.5 million or 96 cents per share a year ago.
The profits included a US$328-million gain from an adjustment on the purchase of Miller International and increased pricing.
Excluding one-time items, adjusted earnings for the three months ended March 31 fell about 40 per cent to US$104.3 million or 48 cents per diluted share.
That compared with US$172.2 million or 80 cents per share in the prior year.
Molson Coors was expected to post 78 cents per share in adjusted earnings on US$2.45 billion in revenues, according to analysts polled by Thomson Reuters.
Canadian pre-tax profits were US$9.1 million, down from US$20.9 million the prior year quarter when it gained US$8.1 million from a price adjustment on the sale of its stake in the Montreal Canadiens.
Molson Coors shares fell 5.47 per cent at C$94.78 in Toronto and by 12 per cent at US$63.06 in Wednesday morning trading on the New York Stock Exchange.
Companies in this story: (TSX:TPX.B, NYSE:TAP)
Source: TSX CP Equities News (May 2, 2018 11:19:00 EDT)