(RTTNews) -  Beer brewer Molson Coors Brewing Co. (TAP: News , TAP.A.TO, TAP.B.TO), Tuesday, reported a more than two-fold rise in its fourth-quarter profit, helped by income tax benefits. Worldwide beer volume declined, amid challenging markets and weak global economy. Separately, MillerCoors, the joint venture between Molson Coors and SABMiller plc (SAB.L: News ), posted higher profit for the fourth quarter, reflecting lower one-time charges.

Fourth-quarter net income attributable to Molson Coors was $222.1 million, up from $93.7 million a year ago. Earnings per share were $1.19 compared with $0.51 in the prior-year quarter.

During the fourth quarter of 2009, the company reported net special charges of $11.1 million pretax, primarily of a non-income-related tax reserve of $10.4 million and restructuring charges of $0.6 million in the U.K. The results also included a $46 million gain on the sale of the Montreal Canadiens Hockey Club in Canada.

Further, the company's fourth quarter of 2009 was benefited by an income tax benefit of $86 million, compared with an income tax expense of $21.5 million last year.

Underlying after-tax income increased 85.5% in the fourth quarter to $190.3 million or $1.02 per share from $102.6 million or $0.55 per share a year ago, driven by a lower effective tax rate, positive net pricing, cost savings, and favorable currency movements.

On average, 10 analysts polled by Thomson Reuters expect a profit of $1.10 per share for the quarter. Analysts' forecast typically excludes one-time items.
Commenting on the results, Peter Swinburn, Molson Coors president and chief executive officer, stated, "Underlying earnings for our company increased more than 85 percent in the 4th quarter versus a year ago, driven by a one-time reduction in tax rate. Behind the headline number, our results were affected by weak volumes across all markets, cost inflation in the U.S. and U.K. and brand investments in Canada."

Molson Coors' quarterly net sales rose to $820.8 million from $739.2 million in the previous year. Analysts had a consensus sales estimate of $784.43 million for the quarter.

Worldwide beer volume was down 4% to 12.12 million hectoliters, driven by challenging markets, a weak global economy, and the company's continued strategy in the U.K. to forgo low-margin volume.

Based on segments, Canada Business generated net sales of $442.8 million, up from $406.6 million in the previous year. The United Kingdom Business posted quarterly net sales of $358.6 million, up from $315.8 million last year.

To receive FREE breaking news email alerts for Molson and others in your portfolio

 1   2   3   Next Page