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 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 records in 1994 after an extremely successful year in 1993 and provided double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. profit growth. As previously announced, the company's baking baking: see cooking. baking Process of cooking by dry heat, especially in an oven. Baked products include bread, cookies, pies, and pastries. subsidiary, 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
PRIOR YEAR NON-RECURRING SPECIAL CHARGES Full year financial results for last year (1993) were affected by two non-recurring special charges as follows: 1. The company's Profitability Enhancement Program resulted in a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , pre-tax Restructuring Charge of $565 million, or $1.26 per share. 2. The Revenue Reconciliation Act of 1993, which increased the federal income tax rate by one percentage point to 35 percent from 34 percent, resulted in a $33 million, or $.12 per share, one-time increase in the company's deferred tax liability. This charge was determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Financial Accounting Standard No. 109, "Accounting For Income Taxes". These two 1993 special charges make it difficult to directly compare full year 1994 vs. 1993 financial results. Accordingly, financial comparisons for the full year are presented on both a "Normal Operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of " basis (excluding the special charges) and an "As Reported" basis (including the special charges) in order to facilitate a full understanding of company results. FULL YEAR 1994 FINANCIAL RESULTS Key financial results for 1994 compared to 1993 are summarized below:
Full Year --- $ in millions, except per share
1994 1993 1994 vs. 1993
Normal As Normal As
Operations Reported Operations Reported
Gross Sales $13,734 $13,185 $13,185 Up 4.2% Up 4.2%
Net Sales $12,054 $11,505 $11,505 Up 4.8% Up 4.8%
Operating Income $ 1,899 $ 1,777 $ 1,212 Up 6.9% Up 56.7%
Pre-tax Income $ 1,707 $ 1,615 $ 1,050 Up 5.7% Up 62.5%
Net Income $ 1,032 $ 981 $ 595 Up 5.3% Up 73.6%
Fully-diluted
Earnings Per Share $3.88 $3.55 $ 2.17 Up 9.3% Up 78.8%
Highlights for 1994 on a Normal Operations basis (excluding the
special charges) were as follows:
- Net sales rose $549 million, a 4.8 percent increase
compared with the prior year. The sales increase was
driven primarily by higher domestic and international beer
sales.
- Operating income increased $122 million, or 6.9 percent,
principally as a result of positive domestic and
international beer performance, partially offset by lower
earnings at Campbell Taggart and the St. Louis National
Baseball Club.
Campbell Taggart's lower earnings level is primarily
attributable to domestic baking operations, resulting from
margin pressure due to higher ingredient costs and
competitive pricing.
The lower earnings level at the St. Louis National Baseball
Club is primarily attributable to the baseball players'
strike which began in August.
- Net income grew $51 million, or 5.3 percent, largely due to
domestic and international beer earnings.
- Earnings per share, on a fully-diluted basis, rose $.33, or
9.3 percent, to $3.88 per share, compar 3.6 $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 |
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