Sales boost Molson Coors
07.05.2008 03:00
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- Source: JS Online
Denver - Molson Coors Brewing Co. on Tuesday reported a jump in first-quarter profit as its sales rose more than 10% on growth in its U.S. and Canadian businesses. The results were released as the Denver-based company works on a plan to combine its U.S. operations, Coors Brewing Co., with SABMiller's Miller Brewing Co., based in Milwaukee. The companies hope to have the deal finalized by midyear pending government approval. "We are smack in the middle of the process," Molson Coors Chief Executive Officer Leo Kiely told analysts during a conference call. "We are doing everything we possibly can to get off to a fast start within the guidelines." Kiely, who will lead the joint venture, said it will help reduce the distance from brewery to market by one-third, which will help reduce costs. Molson Coors shares rose 7.4% Tuesday, closing at $57.10. Molson Coors said net income for the quarter that ended March 30 totaled $37.1 million, or 20 cents per share, compared with $4.4 million, or 3 cents per share, in the year-ago quarter. The company took a $7.3 million charge related to expenses for its joint venture plan with SABMiller, employee retention and other costs. Excluding the charge, the company earned 32 cents per share. Net sales after excise taxes rose to $1.36 billion from $1.23 billion as business improved in all three of Molson Coors' key markets, Canada, the United States and even Great Britain, where it has faced a challenging business environment. The cost of goods per barrel rose 5.5% overall.
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