Profits up, shares slip
Anheuser-Busch announced an 11 % increase in its third quarter profits (ended 30 September 2000) but disappointing volume growth. Third quarter earnings were US$ 514 million compared with last year’s US$ 461.5 million. Domestic beer volume grew only 2.7 % to 26.3 million barrels whereas analysts had predicted volume growth of 3.5 %. As a result, A-B’s share took a bit of a dive as, in the words of one commentator, "investors always like to see volume growth." Year-to-date, A-B sales are up 11 % to US$ 1.34 billion. Philip Morris reported that underlying operating profit at its subsidiary Miller Brewing Co. climbed 3.6 % during the third quarter, to US$ 145 million. However, Miller’s domestic sales slid 4 % to 10.9 million barrels; also revenue slipped 0.3 % to US$ 1.15 billion....
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