(RTTNews) - Wine company Constellation Brands, Inc. (STZ: News ,STZ-B: News ) Wednesday reported a sharp decline in its profit for the first quarter of fiscal 2010, hurt by restructuring as well as acquisition-related integration costs and a 15% drop in its net sales. On a comparable basis, the company's earnings were lower than last year, but came in above analysts' estimate by a penny. Going ahead, Victor, New York-based Constellation confirmed its earnings per share outlook for fiscal 2010.

The company's first-quarter net income was $6.5 million, compared with $44.6 million last year. Earnings per Class A and Class B common stock were $0.03, compared to $0.20 and $0.19, respectively in the prior-year quarter.

The company's pre-tax restructuring charges, acquisition-related integration costs and unusual items totaled $40 million in the quarter, lower than $41 million last year. On a comparable basis, first-quarter net income was $73 million, or $0.33 per share, down from $73.6 million, or $0.34 per share, in the same quarter a year earlier.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude one-time items.

Constellation's quarterly net sales declined 15% to $791.6 million from $931.8 million a year ago. Seven analysts had a consensus revenue estimate of $780.86 million for the quarter. The company attributed lower sales to the impact of year-over-year currency exchange rate fluctuations and the divestitures of the value spirits business, spirits contract production services and certain Pacific Northwest wine brands. On constant currency terms, the sale decline was 5%. Organic net sales increased 1% on a constant currency basis.
For the sequentially preceding fourth quarter, the company reported a net loss of $406.8 million, or $1.88 per Class A share and $1.71 per Class B share. Total sales were $964.9 million for the fourth quarter.

In the first quarter, the company's branded wine net sales reached $688 million, down 10% from the prior-year quarter. Organic net sales on a constant currency basis increased 1%, which includes a 1% drop for North America, a 6% rise for Europe, and a 7% increase for Australia/New Zealand. Net sales for Europe benefited from timing impacts related to the U.K duty increase, the company noted.

Further, total spirits net sales slid 43% in the first quarter to $60 million. Organic net sales were up 13%, led by a 33% gain for SVEDKA Vodka.

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