Beer soothes the summer heat and quenches recession woes


With many companies struggling to beat earnings expectations amid double-digit drops in revenue, it's refreshing to know that some segments of the economy are holding up just fine. Molson Coors Brewing (TAP) said that second quarter profits, excluding one-time items, increased over 20% from last year, as cost savings more than offset a 3 percent decline in beer volume. Earnings per share of $1.11 topped analyst estimates of $0.97.

Molson Coors, which also has a joint venture with SABMiller to market brands like Miller Lite, also said that it was achieving its cost savings target of $500 million more quickly than previously anticipated. Accounting rules related to the agreement with SABMiller make other metrics for Molson Coors, such as revenues and sales volumes, difficult to use for comparison purposes, but pro forma statements provided by the company showed that segment earnings were up 16% year-over-year.

Originally published