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Constellation Brands profit falls in 2Q, lowers top end of fiscal 2007 earnings estimates

Constellation Brands profit falls in 2Q, lowers top end of fiscal 2007 earnings estimates

Beer, liquor and wine producer Constellation Brands Inc. said Thursday its second-quarter profit fell 18 percent due to higher costs and restructuring charges, and it revised fiscal 2007 guidance to reflect intense competition in the British market.
Income available to common shareholders for the quarter ended Aug. 31 dipped to $66 million (euro52 million), or 28 cents per share, from $80 million, or 34 cents per share, last year. The latest period includes a $21.7 million (euro17.11 million) charge for restructuring and business realignment costs, compared with a charge of only $2.2 million last year.
Excluding one-time items, the company said earnings per share rose 5 percent to 43 cents per share, matching the consensus estimate of analyst polled by Thomson Financial.
The company said the June acquisition of vinter Vincor International Inc. helped improve operating margin, but that was offset by competitive market conditions in Britain. Beers and spirits operating margin fell due to increased material costs for spirits, higher spending behind premium spirits and stock-compensation expense.
Revenue jumped 17 percent to $1.71 billion (euro1.35 billion), from $1.47 billion last year, helped by the acquisition of Vincor and growth in base business. Analysts had predicted revenue of $1.41 billion (euro1.11 billion).
The company lowered the top end of its 2007 guidance to a range of $1.72 per share to $1.76 per share, due to "intense competition" in the British market. Previously, it predicted a profit of $1.72 to $1.80. Analysts currently forecast earnings per share of $1.76.


Updated : 2021-05-18 05:59 GMT+08:00