Anheuser-Busch Executives Report Company Is Capitalizing On Continuing Favorable Beer Industry Fundamentals.

Business Editors

ST. LOUIS--(BUSINESS WIRE)--May 15, 2001

Reaffirm Earnings Guidance, Company's Steady Performance

At Gathering Of Institutional Investors 

The outlook for Anheuser-Busch Companies Inc.'s (NYSE:BUD) sales and earnings growth continues to be favorable, executives of the company today told a gathering of institutional investors. The company's top executives reported Anheuser-Busch's consistent strong performance is being driven by domestic beer pricing, volume and productivity gains, along with a significant contribution to earnings growth from the company's international beer segment.

The company has realized ten consecutive quarters of double-digit earnings per share growth. In addition, over the past two years, Anheuser-Busch's return on capital employed has increased 220 basis points, reported Chairman of the Board and President August A. Busch III.

"Domestic beer industry fundamentals are the best we've experienced in more than a decade," Busch told the gathering at Anheuser-Busch Companies Inc.'s headquarters in St. Louis. "Favorable demographic trends should result in good industry volume growth throughout this decade.

"Trading up to higher-margin products continues in the industry in spite of recent economic slowing," Busch said. "High industry capacity utilization as well as our strong marketing programs should support a continued favorable pricing environment. Importantly, Anheuser-Busch's consistent success in increasing revenue per barrel, volume and productivity reflects our strong leadership position in the domestic beer industry."

Marketplace reaction to Anheuser-Busch's latest pricing initiatives continues to be favorable, noted Patrick T. Stokes, Senior Executive Vice President, Anheuser-Busch Companies Inc. The company's domestic sales to retailers have rebounded since March, he said. Year-to-date sales to retailers are up 1 percent versus an increase of 0.3 percent in the first quarter.

Stokes further emphasized the company's steady, solid performance in domestic beer operations, noting:

-- Two percent or higher revenue-per-barrel growth for 10 consecutive quarters

-- Over 2 percent domestic beer volume growth for three years in a row

-- An average of $60 million annually in productivity-related savings, and

-- Operating profit margin growth of 280 basis points over the past two years

"Each of the past four years the international beer segment of Anheuser-Busch has contributed 20 percent or more of the company's earnings-per-share growth rate," said Stokes. "This significant contribution has been led by the consistently strong performance of our equity partner, Grupo Modelo, the leading brewer in Mexico."

The improved operating results of the company's packaging and entertainment segments were also discussed at the meeting. All of the company's business segments contributed to earnings growth in the first quarter and are expected to do so for the full year 2001.

W. Randolph Baker, Vice President and Chief Financial Officer, reaffirmed the company's 12% target for earnings per share growth in 2001. Baker also reaffirmed that the company expects domestic beer shipments and sales-to-retailers to increase in the 1.5% to 2% range for the full year.

"The management of Anheuser-Busch remains focused on consistently achieving double-digit earnings per share growth, increasing return on capital and generating superior shareholder returns," concluded August A. Busch III. "Through the end of 2000, Anheuser-Busch stock had outperformed the S&P 500 by a substantial margin over the past one, three, five, ten and twenty-year time periods. Clearly, we have consistently delivered superior shareholder value."

Other Matters

As previously announced, Anheuser-Busch Companies' 2001 BUD Investor Conference is being broadcast live over the Internet today beginning at 9:30 a.m. Eastern Time. A replay of the webcast will be available on the company's website for approximately one week. For details visit the company's site on the internet at www.anheuser-busch.com.

This release contains statements regarding the company's expectations concerning its future operations, earnings and prospects. These statements are forward-looking and involve significant risks and uncertainties, and accordingly, no assurances can be given that such expectations will be correct. These expectations are based upon many assumptions that the company believes to be reasonable, but such assumptions may ultimately prove to be inaccurate or incomplete, in whole or in part. The company disclaims any obligation to update any of these forward-looking statements. If the company determines to update any forward-looking statement, it will do so publicly. No private statements by the company or its personnel should be interpreted as updating forward-looking statements. Further information on factors that could affect the company's future operations and earnings is included in the company's Forms 10-Q and 10-K.

SOURCE: Anheuser-Busch Companies, Inc.