Anheuser-Busch announces record sales, earnings and beer volume for the full year 1994.ST. LOUIS--(BUSINESS WIRE)--Feb. 7, 1995--Anheuser-Busch Companies, Inc. achieved record sales, earnings and beer volume for the year 1994, it was announced Tuesday Tuesday: see week. by August A. Busch Busch , Adolf Georg Wilhelm 1891-1952. German-born Swiss violinist and conductor best known for his work as leader of the Busch Quartet, an internationally acclaimed chamber group formed in 1919. III, Chairman of the Board and President. It was the company's 18th consecutive year of record sales. The company also reported higher sales and earnings for the Fourth Quarter of 1994 compared to the same period last year. The record sales and earnings for 1994 were driven by several factors: increased beer sales volume, improved product mix and cost benefits resulting from the Profitability Enhancement Program initiated in 1993. Increased Beer Sales Volume Anheuser-Busch beer sales volume increased in 1994 to a record 88.5 million barrels. This represents an increase of 1.4 percent and compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with estimated industry shipment growth (including exports and imports) of nine-tenths (.9) of one percent during 1994. This resulted in an estimated three-tenths (.3) of one percent increase in the Anheuser-Busch domestic market share to 45.0 percent, compared to 44.7 percent last year. Sales-to-retailers, considered a more accurate measure of underlying consumer demand, increased by 2.8 percent during the year. The growth in sales-to-retailers exceeded the company's reported volume increase primarily because company shipments were reduced to effect a planned reduction in year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1994 wholesaler inventories. In 1993, the company built year-end beer inventories in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of national labor negotiations which were successfully concluded in 1994. Improved Product Mix During 1994, the company experienced an improvement in sales mix sales mix See product mix. toward its premium beers. The trend was highlighted by the introduction of Bud Ice and the strong performance of Bud Light as the brand became the number one light beer and the second-largest beer brand in the U.S. This mix change toward premium products contributed to more than a 1 percent increase in revenue per barrel barrel: see English units of measurement. in 1994 and positions the company for further profit growth in 1995. Profitability Enhancement Program The Profitability Enhancement Program, which included significant organizational and operational changes in the company's businesses, resulted in a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta Restructuring Charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $565 million in 1993. As anticipated, the Program has resulted in approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $100 million in cost savings in 1994. In conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with Program-related capital expenditures of approximately $1.3 billion in 1994-1998, the Program is expected to generate additional cost savings of approximately $300 million a year by 1998. Subsidiary Performance Anheuser-Busch, Inc., the company's brewing brewing: see beer. subsidiary, reported record sales and earnings during 1994. The improvement in premium beer sales during 1994 was a critical strategic objective of the company. Pricing strategy which narrowed the spread between the premium and popular price categories to encourage "trading-up" was a primary factor in the increased profitability for this subsidiary. Also contributing to the higher profitability were reduced discounting in the marketplace, relatively flat packaging and raw material costs and cost reductions from operating efficiency improvements. Anheuser-Busch International, the company's international beer subsidiary, increased its earnings by approximately 50 percent during 1994 and was the second largest contributor to consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: earnings growth. Busch Entertainment, the company's family entertainment subsidiary, achieved new attendance record ude achieving double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. earnings per share growth and strengthening Campbell Campbell, city, United States Campbell, city (1990 pop. 36,048), Santa Clara co., W Calif., in the fertile Santa Clara valley; founded 1885, inc. 1952. Taggart's performance. The company remains committed to providing direct returns to shareholders in the form of increasing dividends and continuing share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. ." FOURTH QUARTER 1994 FINANCIAL RESULTS Key financial results for the Fourth Quarter of 1994 compared to 1993 are summarized below: -0-
Fourth Quarter --- $ in millions, except per share
1994 1993 1994 vs. 1993
Gross Sales $3,350 $3,264 Up 2.7%
Net Sales $2,959 $2,854 Up 3.7%
Operating
Income $ 337 $ 322 Up 4.7%
Pre-tax
Income $ 289 $ 274 Up 5.6%
Net Income $ 176 $ 167 Up 5.3%
Fully-diluted
Earnings
Per Share $ .68 $ .62 Up 9.7%
Highlights for the Fourth Quarter were as follows:
- Net sales rose $105 million, a 3.7 percent increase
compared with the Fourth Quarter of last year. The
increase is primarily related to higher international beer
sales and higher sales from other company subsidiaries.
- Operating income rose $15 million, or 4.7 percent, compared
to the prior year, due to the performance of the company's
domestic and international beer operations and packaging
subsidiaries.
- Net income grew $9 million, or 5.3 percent, when compared
to 1993.
- Earnings per share, on a fully-diluted basis, rose $.06, or
9.7 percent, to $.68 per share compared with $.62 in 1993.
Earnings per share growth benefited from fewer shares
outstanding due to the company's share repurchase program.
BEER SALES RESULTS Volume Anheuser-Busch, Inc., the company's brewing subsidiary, reported record sales of 88.5 million barrels during 1994, an increase of 1.2 million barrels, or 1.4 percent, over the 87.3 million barrels sold during 1993. Reported sales volume for the Fourth Quarter of 1994 was 20.7 million barrels compared to 21.3 million barrels during the Fourth Quarter of 1993, a decrease of 2.6 percent. The decline in beer sales volume during the Fourth Quarter resulted from the company's planned reduction in wholesaler inventories. "The Budweiser Family of premium beers was a significant contributor to the increase in sales volume for 1994," Mr. Busch said. "Bud Family sales-to-retailers increased by 3.5 percent, led by Bud Light, which continued to grow at double-digit rates, and the successful introduction of Bud Ice and Bud Ice Light. Importantly, the company's flagship This article is about the lead ship, store, or product of a group. For other uses, see Flagship (disambiguation). A flagship is the ship used by the commanding officer of a group of naval ships. brand, Budweiser, has shown improvement in sales trend during 1994, with only a moderate decline in total sales volume." As previously announced, Bud Light became the largest selling light beer and the number two beer brand in the U.S. behind Budweiser during the Third Quarter of 1994. The brand strengthened its hold on these positions during the Fourth Quarter. "We are extremely proud of this accomplishment," Mr. Busch said. "Anheuser-Busch brands are the leader in the regular, light and non-alcohol categories, as well as the leader in each of the four price segments."
COMPARATIVE STATEMENT OF EARNINGS
FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 1994 AND 1993
(In Millions, Except Per Share)
Fourth Quarter Year-to-Date
1994 1993 1994 1993
Gross Sales $3,350.2 $3,263.6 $13,733.5 $13,185.1 Excise Taxes (391.0) (409.2) (1,679.7) (1,679.8) Net Sales 2,959.2 2,854.4 12,053.8 11,505.3 Cost of Products & Services 1,976.0 1,891.3 7,784.4 7,419.7 Marketing, Distribution and Administrative Expenses 645.9 640.8 2,370.3 2,308.7 Restructuring Charge - - - 565.0 Operating Income 337.3 322.3 1,899.1 1,211.9 Interest Expense (56.3) (52.1) (221.4) (207.8) Interest Capitalized 6.9 6.3 22.1 36.7 Interest Income .6 .8 3.3 5.2 Other Income/(Expense), Net .8 (3.3) 4.0 4.4 Income Before Income Taxes 289.3 274.0 1,707.1 1,050.4
Provision for Income Taxes:
Current/deferred (113.6) (107.2) (675.0) (422.9)
Revaluation of deferred tax
liability (FAS 109) - - - (33.0)
Net Income $ 175.7 $ 166.8 $ 1,032.1 $ 594.5
Primary Earnings Per Share $ .68 $ .62 $3.91 $2.17 Fully Diluted Earnings Per Share $ .68 $ .62 $3.88 $2.17 Capital Expenditures $242.6 $205.8 $784.8 $776.9 Depreciation and Amortization $161.8 $157.4 $627.5 $608.3 Weighted Average Shares Outstanding - Primary 260.2 270.0 264.1 274.3 Weighted Average Shares Outstanding - Fully Diluted 265.1 275.0 269.0 279.3 CONTACT: Anheuser-Busch, St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Wagman or Barry Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. Murov, 314/982-1700 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion