Molson Coors Brewing Co., one of the world’s largest brewers, said Tuesday its second- quarter profit rose 18 percent, fueled by strong sales of Coors Light in the U.S. and Canada.
The Denver-based brewer’s operations in Europe, however, turned in a weaker performance compared with the year-ago quarter because of the timing of the World Cup soccer tournament in 2006 and poor weather.
The results beat Wall Street estimates, although some analysts noted the company benefited from shifts in inventory in North America and a lower tax rate.
In an interview with The Associated Press, president and chief executive Leo Kiely said he was pleased with the results overall, but he acknowledged the brewer faces challenges in the United Kingdom, where the pub industry is declining as more consumers favor take-home products.
“You have to play the hand that’s dealt,” he said. “We’ve got a tremendous business in the U.K. and tremendous brands. The industry sort of reality is just very tough.”
For the quarter ended July 1, net income rose to $185 million, or $2.04 per share, from $156.2 million, or $1.81 per share, in the same quarter a year ago.
The most recent results included charges of $25.4 million, a gain on the sale of an equity interest in a Canadian business and a one-time tax benefit. Excluding special items, Molson Coors earned $176.1 million, or $1.94 per share.
Revenue rose 6 percent to $1.68 billion from $1.58 billion in the second quarter of 2006.
Analysts polled by Thomson Financial had forecast earnings of $1.72 per share on revenue of $1.63 billion.
