Constellation Brands’ second-quarter profit fell 8 percent year over year, but the performance still beat Wall Street estimates, boosting the Victor-based company’s stock during Wednesday’s trading. Constellation, among the world’s largest wine, beer and spirits companies, posted a profit of $91.3 million, or 43 cents a share, down from $99.7 million in the 2009 fiscal second quarter.
Excluding restructuring and other one-time costs, earnings for the quarter that ended Aug. 31 were 52 cents a share, off from 54 cents in 2009. Net sales year over year fell 1.6 percent to $862.8 million. Wall Street analysts had forecast an adjusted profit of 49 cents a share on sales of $856 million, so Constellation Brands beat expectations on both counts.
The results boosted the company’s stock more than 4 percent to $18.52 on the New York Stock Exchange.
“I’m pleased with the second-quarter results given the unsettled nature of the market,” CEO Rob Sands said in a conference call with investors. “It is consistent with our goal of organic growth. We believe we are gaining market share across the board.”
Wine accounts for much of Constellation’s sales. North American sales rose 4 percent while sales in Europe and Australia fell 12 percent and 15 percent, respectively. Among its brands are Woodbridge, Ravenswood and Clos du Bois.
Performance of the company’s joint venture with Grupo Modelo of Mexico was off year to year, with sales of the Crown Imports beer products down 2 percent. Those beers include Corona, Pacifico and Negra Modelo from Mexico, St. Pauli Girl from Germany and Tsingtao from China.
But Sands was upbeat about the prospects for the line of brews. “Consumer demand for Crown’s products remained solid for the second consecutive quarter, driven by the Win the Beach and World Cup soccer promotional initiatives,” he said. “Crown is targeting to build on this momentum with new advertising programs during the NFL season.”Constellation Brands affirmed its profit outlook for the full fiscal year. It projects earnings of between $1.63 and $1.78 a share.
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