Molson Coors Brewing Co. (TAP, TPX.TO) reported that its first-quarter net income attributable to the company declined to $35.6 million or $0.20 per share, from $79.5 million or $0.44 per share in the same quarter last year.
Underlying after-tax income for the quarter fell to $54.6 million from last year's $85.3 million, Underlying income per share declining to $0.30 from $0.47 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
Underlying after-tax income declined 36.0 percent for the first quarter 2013, driven by the addition of Central Europe-related debt service costs and operating results this year, in a seasonally low profit quarter. Also contributing to lower income were unfavorable foreign exchange movements, increased brand investments, and poor weather in key markets this year.
Net income from continuing operations attributable to the company decreased 54.0 percent due to the same factors affecting underlying earnings, as well as an unrealized net loss related to fair value and foreign exchange movements associated with 500 million euros convertible note.
The company reported a 20.3 percent increase in first quarter worldwide beer volume and 19.8 percent higher net sales in the first quarter of 2013 due to the June 2012 acquisition of the company's new Central Europe or "CE" operations.
Net sales for the quarter rose to $828.5 million from $691.4 million in the prior year quarter. Seven analysts had consensus revenue estimate of $854.16 million for the quarter.
Meanwhile, MillerCoors LLC, the U.S. joint venture with SABMiller Plc (SAB.L, SABMRY.PK), posted a quarterly net income of $271.9 million, a decline from $275.3 million last year.
But, MillerCoors's net Sales were $1.79 billion, up from $1.76 billion in the prior year quarter.
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