Soaring costs for fuel, grains and packaging, along with consumers pulling back their spending, pushed Molson Coors Brewing Co.’s profit down 56 percent in the second quarter, the company said Tuesday.
The drop also includes charges associated with combining the firm’s U.S. arm with the maker of Miller beers — a deal that executives say will still save money in the long run.
Shares in the Denver-based brewer of Coors Light tumbled 11 percent as the results missed Wall Street’s expectations.
The nation’s third-largest brewer is raising prices, as are others in the industry, to try to keep up with costs.
Molson Coors president and chief executive Peter Swinburn told The Associated Press in an interview that the company will keep adjusting its pricing based on markets and brands. It’ll also use its marketing to persuade consumers to see the value as they pay more.
He said the joint venture with SABMiller’s U.S. unit was on track to bring in an estimated $500 million in savings in three years. The pairing, called MillerCoors LLC, began operating July 1.
In the three-month period ended in June, Molson Coors said it earned $80.9 million, or 43 cents per share, down from $184.9 million, or $1.02 per share, a year earlier.
Excluding special items related to the joint venture and other items, worth a total of $103.9 million, the company said it earned 93 cents per share. Analysts polled by Thomson Financial, who generally exclude one-time items, had expected profit of $1.16 per share.
