Anheuser-Busch’s quarterly profit rises
The third quarter was generally rosy for A-B. The brewer has a few billion in spare cash to buy back some stock. Guess they don’t have other investment plans!
At the end of October, Anheuser-Busch announced that quarterly profit rose nearly 11 percent as the nation’s major brewer sold more beer at higher prices.
The maker of Budweiser and Bud Light reported net income of USD 706.7 million, or 95 cents per share, for the third quarter, ended 30 September 2007, compared to USD 637.5 million, or 82 cents per share, a year ago.
Quarterly net sales rose to USD 4.62 billion from USD 4.28 billion a year ago.
U.S. beer shipments to wholesalers rose 2 percent in the quarter, while sales to retailers rose 2.2 percent.
Anheuser-Busch Cos raised its 2007 guidance for share buybacks to about USD 2.7 billion, due to higher operating cash flow, and lowered its forecast for equity income, due to weaker sales from Modelo.
The sales of Corona Extra, the number one imported beer in the U.S., must have begun their decline in the previous quarter already. Sales went down 0.3 percent in supermarket sales for the 13 weeks ended 15 July, as was reported by Information Resources Inc.
Could it be the case that Corona Extra is not doing as well in the U.S. any longer due to Modelo having terminated the contract with its erstwhile importer, the Gambrinus Company?
