In what could be a preview of Molson Coor's earnings announcement, SABMiller announced a .8% fall in US sales. As SABMiller and Molson Coors operate as joint venture Miller Coors in the US, investors expect Molson Coor's numbers to be similar.
A UBS analyst lowered the bank's estimates of TAP's 2009 earnings due to slowing US volumes. The analyst did, however, maintain TAP's buy rating.
In the March 22 edition of widely circulated Barron's, the magazine called Molson Coors a compelling bet, citing the company's growing market share and stable pricing as reasons to invest in the stock.
Q4 '09 profits fell 44% from a year earlier on higher commodities costs, a stronger dollar, and lower demand. Increased beer prices failed to counteract the loss.
TAP posted a 29% increase in Q3 profit has the company expanded market share in Canada and the U.K. and started to see cost savings from its U.S. joint venture MillerCoors. MillerCoors saw profit rise 15% from the year earlier when Miller and Coors were two separate operations.
Molson Coors second quarter profit declined 56% as net sales per barrel rose 3.9% while cost per barrel rose 5.9%.
Molson Coors reported that first-quarter net income soared amid strong sales and improved margins. The brewer reported net income of $37.1 million; net sales, which exclude excise taxes, rose 10% to $1.36 billion with volume increasing 2.8%.
Molson Coors Brewing Co.'s fourth-quarter net income rose 74% amid income-tax benefits. The Denver beer maker reported net income of $173.2 million, or 95 cents a share; sales increased 3.2% to $2.17 billion on favorable pricing.
Shares of Molson Coors Brewing Company increased in the early trading hours on Tuesday on the news that the company agreed to combine its US operations with SABMiller. The companies plan to form a joint venture, which will be called MillerCoors, in order to compete more effectively with larger brewers.
TAP announces promising growth rate in sales and profit despite worsening competitive outlook.