NEW YORK (AP) — Molson Coors Brewing Co.'s third-quarter net income declined 39 percent, stung by softening consumer demand and a write-down of the value of two brands in its Europe business.
Its adjusted profit topped Wall Street's expectations, but revenue fell short. Shares gained in premarket trading.
The beer maker — whose brands also include Miller, Heineken and Foster's — earned $121.8 million, or 66 cents per share, for the period ended Sept. 28. That compares with $198.4 million, or $1.09 per share, a year ago.
Earnings from continuing operations were 65 cents per share.
The latest quarter included a $150.9 million write-down of the value of Serbia's Jelen brand and Ostravar, a regional brand in the Czech Republic. It also booked an $8.9 million charge for restructuring in the U.S. and Canada, and other one-time costs.
Removing those items, earnings were $1.45 per share.
Revenue after removing excise taxes slipped 3 percent to $1.17 billion from $1.2 billion.
Analysts surveyed by FactSet, on average, expected earnings of $1.39 per share on revenue of $1.21 billion.
MillerCoors, a joint venture with SABMiller that sells both of the companies' brands in the U.S., reported that its net income rose 12 percent on higher prices, cost cuts and a better brand mix. Sales to retailers slipped 2 percent.
International sales volume, which includes royalty volume, dropped 18 percent, partly because of weakness in the Ukraine and Russia license markets. It was also hurt by the transfer of its Carling travel and export business to the Europe segment.
Before the opening bell, Molson Coors shares added 99 cents, or 2 percent, to $55. The stock closed Tuesday up 26 percent since the start of the year, at $54.01.