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 GOLDEN, Colo., Nov. 1 /PRNewswire/ -- Adolph Coors Co. (NASDAQ-NMS: ACCOB) today announced higher net sales but lower income from continuing operations for the third quarter of 1993.
 For the 16-week fiscal quarter ended Oct. 3, 1993, the company achieved net sales of $535.6 million, up 3.6 percent from $517.0 million a year earlier. For the third quarter, the company reported net income of $9.6 million, or $0.25 per share, down from income of $24.8 million, or $0.66 per share, from continuing operations a year earlier.
 Increased net sales were the result of higher volume and slightly higher prices achieved by the company's principal subsidiary, Coors Brewing Co. (CBC). Last month, CBC announced that its 1993 third quarter sales volume was 6,767,000 barrels of beer and other malt beverages, up 3.4 percent from a year ago.
 Peter H. Coors, vice chairman and chief executive officer of CBC, said, "Our sales increases in this very competitive industry indicate that consumers recognize the unbeatable quality and value offered by Coors products. We continue to see strong sales from a number of our brands, including Coors Light, Killian's and our innovative new alcohol beverage, Zima(TM) Clearmalt(TM). At the same time, however, our marketing, general and administrative costs increased approximately 23 percent during the third quarter, primarily due to a substantial investment in marketing and promotion in support of our rollout of Zima to 40 new markets this year. This investment -- along with continued heavy price discounting on other brands -- meant that our increased sales did not translate into improved financial results in the third quarter."
 Third quarter net income was also negatively affected by the recent increase in the federal corporate income tax rate. The impact of this retroactive rate increase was $2.0 million, or $0.05 per share, for the third quarter.
 W. Leo Kiely III, CBC president and chief operating officer, added, "We have previously said that the second half of 1993 would be difficult. Our third quarter results confirm this. As a result of extensive price discounting, net price realizations for the company's products were up a modest 0.4 percent from the third quarter of 1992. Furthermore, our expectation of difficult challenges ahead still holds for the fourth quarter. While we expect marketing expenditures to moderate in the fourth quarter, we anticipate ongoing pricing pressures and lower fourth quarter sales volume because of an anticipated reduction in distributor inventories.
 "Meanwhile, we are proceeding with a company-wide effort to improve profitability," Kiely said. "This effort is resulting in a number of positive changes in the way we do business. We are looking at general and administrative costs, operational efficiencies, asset utilization and revenue enhancements."
 Kiely noted, "While we cannot yet fully quantify the total restructuring charge associated with these profit improvement initiatives, the planned reduction in employees is expected to result in a pretax cost in the range of $65 million to $75 million. We are still working to quantify the costs related to improved operational efficiencies and asset utilization and revenue enhancements. We anticipate that the fourth quarter restructuring charge will be materially higher when we have included costs related to those initiatives, as well.
 "Obviously, the total restructuring charge will have a significant impact on our fourth quarter and year-end results," Kiely added. "However, we are confident that these actions will better position us for future growth and profitability."
 For the first three quarters of 1993, Adolph Coors Co. reported net sales of $1.24 billion, up 2.7 percent from $1.21 billion from continuing operations a year earlier. Year-to-date net income was $33.1 million, down from $39.2 million of income from continuing operations in the first 40 weeks of 1992.
 On Dec. 27, 1992, Adolph Coors Co. distributed to its shareholders the common stock of ACX Technologies Inc. (NASDAQ: ACXT), the holding company for several diversified technology businesses. Results of ACX Technologies for the third quarter of 1992 are reported as discontinued operations. Including discontinued operations, Adolph Coors Co. reported net income of $23.4 million, or $0.62 per share, for the third quarter of 1992.
 Adolph Coors Co., founded in 1873, is the holding company for its principal subsidiary, Coors Brewing Co., the third-largest brewer in the United States. Coors uses only the finest ingredients available in an all-natural brewing process to offer consumers a wide range of high- quality malt beverages. This dedication to quality has allowed Coors Brewing Co. to outpace the industry in volume growth rate for eight consecutive years.
 Summary of Operations
 (In thousands, except per share data)
 Sixteen Weeks Ended Forty Weeks Ended
 Oct. 3, Oct. 4, Oct. 3, Oct. 4
 1993 1992 1993 1992
 Barrels sold 6,767 6,547 15,623 15,208
 Sales $660,107 $637,564 $1,532,117 $1,492,543
 Less: beer excise
 taxes 124,480 120,572 287,639 280,997
 Net sales 535,627 516,992 1,244,478 1,211,546
 Costs and expenses:
 Cost of goods sold 349,149 338,270 805,593 790,262
 Marketing, general
 and administrative 158,288 128,884 356,838 336,436
 Research and project
 development 4,506 3,367 9,941 9,508
 Operating income 23,684 46,471 72,106 75,340
 Other (income) expense -
 net (125) (752) (449) (537)
 Interest expense - net 3,821 4,574 10,423 11,184
 Income before
 income taxes 19,988 42,649 62,132 64,693
 Income tax expense 10,400 17,800 29,000 25,500
 Income from continuing
 operations 9,588 24,849 33,132 39,193
 Net income (loss) from
 discontinued operations --- (1,404) --- (10,181)
 Income before cumulative
 effect of change in
 accounting principles 9,588 23,445 33,132 29,012
 Cumulative effect of
 change in accounting
 for post-retirement
 benefits (net of taxes) --- --- --- (38,800)
 Cumulative effect of
 change in accounting for
 income taxes --- --- --- 30,500
 Net income (loss) $9,588 $23,445 $33,132 $20,712
 Net income (loss) per
 share of common stock:
 Income from continuing
 operations $0.25 $0.66 $0.87 $1.04
 Net income (loss) from
 discontinued operations --- (0.04) --- (0.27)
 Income before cumulative
 effect of change in
 accounting principles 0.25 0.62 0.87 0.77
 Cumulative effect of
 change in accounting for
 post-retirement benefits --- --- --- (1.03)
 Cumulative effect of
 change in accounting
 for income taxes --- --- --- 0.81
 Net income (loss) per
 share of common stock $0.25 $0.62 $0.87 $0.55
 Weighted average
 number of shares
 outstanding 38,101,057 37,543,000 37,926,000 37,524,000
 Cash dividends
 declared per share
 of common stock $0.125 $0.125 $0.375 $0.375
 -0- 11/1/93
 /CONTACT: Dave Dunnewald or Willis Lyford of Adolph Coors Co., 303-277-2555 or 800-525-3786/

CO: Adolph Coors Co. ST: Colorado IN: FOD SU: ERN

BB -- DV001 -- 9252 11/01/93 15:04 EST
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Publication:PR Newswire
Date:Nov 1, 1993

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