(RTTNews) - Molson Coors Brewing Co. (TAP: News , TAP.A.TO, TAP.B.TO) is slated to release its third-quarter results before the market opens Wednesday. On average, eight analysts surveyed by Thomson Reuters expect the company to post earnings of $0.98 per share for the quarter, with estimates ranging between $0.90 and $1.06 per share. Analysts' estimates typically exclude special items. Net sales for the quarter are estimated to be $836.99 million, representing a 9.1% drop from last year.

In the same quarter a year ago, the Denver, Colorado-based brewer had reported net income of $173.2 million or $0.94 per share, income from continuing operations of $170.0 million or $0.92 per share, and underlying income of $175.8 million or $0.95 per share. The prior-year quarter total sales were $1.37 billion and net sales were $921.1 million.

While announcing the second quarter results back in August, Peter Swinburn, president and chief executive officer of Molson Coors, said, "While we expect the balance of 2009 to present challenges in the areas of competitive price discounting in Canada and cost inflation across our company, we are addressing these issues by staying focused on building strong brands, reducing costs, generating cash, and driving shareholder value."

Molson Coors, which was formerly known as Adolph Coors Co., brews, markets, sells, and distributes beer and other beverages through its subsidiaries, under a portfolio of leading premium quality brands such as Coors Light, Molson Canadian, Molson Dry, Carling, Coors Banquet and Keystone Light in North America, Europe and Asia. The distribution of its products in U.S. is through a three-tier system consisting of manufacturers, distributors, and retailers, and in UK is through a two-tier system consisting of manufacturers and retailers. It has a joint venture with Grupo Modelo, S.A.B. de C.V. in Canada, and with Royal Grolsch N.V. in the United Kingdom and the Republic of Ireland.
The recession-hit economy had seen consumers shifting their habits of drinking beers, leading to volume drops for key Molson Coors markets like Canada. However, the trends seem to improve with easing economic pressures. As per certain reports, the company's U.S. business has not been as hurt as that in Canada, as it has the benefit of its MillerCoors LLC, the joint venture between Molson Coors and SABMiller Plc's (SAB.L: News ) U.S. unit, which is expected to generate some $500 million in savings in three years.

In its preceding second quarter, Molson Coors had reported a profit that more than doubled to $187.3 million or $1.01 per share, from $79.4 million or $0.42 per share last year, helped by higher beer pricing and cost reduction initiatives across the company. This more than offset the effects of a strong U.S. dollar, cost inflation and lower worldwide sales volume. Underlying earnings climbed 20.6% to $205.4 million or $1.11 per share from $170.3 million or $0.92 per share a year ago. Net sales for the period was down 55% to $798.9 million from $1.76 billion in the previous year. The company's lower beer volume reflected poor weather in key geographies, a weak global economy, and the company's strategy in the U.K. to emphasize revenue growth over low-margin volume growth.

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