Constellation Brands posts 4Q loss, dim forecast

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Constellation Brands posts 4Q loss, dim forecast

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Monday, 12 April 2010 12:51

Offered to Rochester, New York (AFP) - Constellation Brands Inc., which markets Mondavi wine, vodka and beer Svedka Corona, and look pale of alcoholic beverages on Friday where U.S. sales of wine and beer imports has been slow in bars and restaurants during the holiday season.

The company said the world's largest wine by volume, with brands such as Mondavi, Robert Clos Bois Du, public financial loss in the fourth quarter from December through February fell to 51 million decline in sales of alcoholic beverages, beer and the outstanding weakness in the wine key in America Northern market.
The company expected profits in the current fiscal year which began on 1 March, will come in well below Wall Street expectations, on average. It expects to earn 1.53 dollars to 1.68 dollars per share, while analysts had expected profit 1.77 dollars.

Tower shares fell 42 cents, or 2.5 percent, to close at 16.43 on Friday.

Constellation said it had lost the equivalent of 23 cents per share in the quarter. That compared with a loss of 406.8 million dollars, or 1.88 dollars cents per share, in the previous year. Excluding the cost of a one-time, however, earned 27 cents a share, 3 cents better than the average estimate of analysts surveyed by Thomson Reuters.

Sales fell 3.6 percent to 708.7 million dollars from 735.1 million dollars.
And a decline in consumer spending and demand for the United States curly for 5 dollars to 20 dollars per barrel wine brands which constitute the bulk of its work. Has also been fighting falling sales of beer in the high-end its joint venture with the business wholesale Grupo Mexico SA to break the model.

"In 2009, the wine business was probably flat to slightly higher, in 2010 and we do not expect anything different from so much," said CEO Rob Sands in a conference call with analysts.

"Destruction, and warehouses and the club is basically a health industry ... but we do not see the continuation of negative trend" in bars and restaurants, offsetting gains in the grocery store, said Sands. "If the economy improved and the decline of unemployment, which may change, but at this moment ... there were some trends too many people stay at home, eat at home, and not go out as much as."

Beer sales fell 4 percent in the quarter to 419 million dollars. Liquor sales fell 49 percent to 48 million dollars, hit by the liquidation of the moral value of work.

Increased sales of wine brands, which represents the bulk of its revenues, and 2 percent to 620 million dollars. But in North America fell 3 percent to 207 million dollars.

Analysts expect some hiccups selling wine and the renewal of a distribution network is in place.

"It is very difficult to fire a single distributor and set another one without some sort of repercussions," said Tim Ramey, an analyst with boy problems, Davidson & Co. in Oswego Lake, Oregon "and category of wine is superior to Constellation Brands in this time. Constellation Brands' on probably self-re-distributor. "

While sales of wine, the United States is heard in supermarkets, Rami, said, "We're not sure yet about the bars and restaurants, but when it changes, it would be a good influence."

After a wave of buying two decades, the company that sold cheaper than the "value" to focus on brands in the more profitable premium end of the wine and spirits markets. During the past year, the labor force fell to 6,600 from 8,000 because they abandoned factories and production lines and distribution network standard.

Based in Victor, 20 miles southeast of Rochester, the company sells brands of wine and alcoholic beverages about 70 such as Paul Masson brandy and Black Velvet Canadian whiskey. And also imports beers such as Negra Modelo from Mexico, Tsingtao from China and St. Pauli Girl from Germany.

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