(RTTNews) - Beer brewer Molson Coors Brewing Co.(TAP: News ,TAP.A.TO,TAP.B.TO ), on Wednesday reported a 37.4% rise in profit for the third quarter, driven by lower tax rate, higher beer pricing and cost control measures across the company that more than offset a decline in revenues from last year.

Meanwhile, Molson Coors and SABMiller plc (SAB.L: News ) announced third-quarter results for their joint venture, MillerCoors, where underlying net income rose 28.1% from last year, helped by lower costs. Revenues grew 3% from last year on domestic net pricing, despite continued commodity cost pressures.

The recession-hit economy is witness to consumers shifting their beer drinking habits, leading to volume drops for key Molson Coors markets like Canada, but the trend seem to be improving with easing economic pressures. As per reports, the company's U.S. business has not been hurt as much as it did in Canada, due to the benefit of its MillerCoors LLC, which is expected to generate some $500 million in savings over three years.

For the third quarter, the Denver, Colorado-based brewer's net income attributable to Molson Coors rose to $235.3 million or $1.26 per share from $171.3 million or $0.92 per share in the year ago quarter.

Income from continuing operations attributable to Molson Coors for the quarter rose to $244.3 million or $1.31 per share from $168.1 million or $0.90 per share in the year ago quarter.

Results for the quarter included net special charges of $4.3 million pretax, composed primarily of $3.5 million non-cash expenses associated with closing the Edmonton Brewery. Other one-time items in the quarter included a $59.3 million non-cash mark-to-market gain in corporate other income related to the cash-settled total-return swap arranged with respect to Foster's common stock in 2008.
Molson Coor's underlying after-tax income for the quarter increased 22.7% to $212.9 million or $1.14 per share, up from $173.5 million or $0.93 per share a year ago, driven by a lower effective tax rate and strong earnings growth from MillerCoors and U.K. Business. Excluding items, underlying after tax income grew 13% to $196.1 million from $173.5 million in the same period last year.

On average, eight analysts polled by Thomson Reuters expected the company to earn $0.98 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

The company said that effective tax rate during the quarter for income from continuing operations was 9% on a reported basis and 4% on an underlying basis.

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