ADOLPH COORS REPORTS LOWER FIRST QUARTER RESULTS
ADOLPH COORS REPORTS LOWER FIRST QUARTER RESULTS GOLDEN, Colo., April 22 /PRNewswire/ -- Adolph Coors Co.
(NASDAQ: ACCOB) today announced higher first quarter net sales for the 12 weeks ended March 22, 1992. The company reported lower earnings, compared with the like period of 1991.
Net sales for the 1992 first quarter totaled $383.5 million, a 2.3 percent increase, compared with net sales of $374.7 million for the like period a year ago. Net income decreased to $762,000, or 2 cents per share, compared with $6.3 million, or 17 cents per share, a year earlier. Chairman of the Board William K. Coors said, "Earnings continue to suffer following the recent completion of a major capital investment program designed to expand and diversify the company's sales and earnings base. Increased costs associated with this expansion were anticipated and will continue to have an impact on earnings in the near term. However, as we increase the utilization of new capacity in our beer, ceramics and aluminum businesses, we expect improved financial performance for Adolph Coors Company. Earnings were also reduced by approximately $7 million of pretax charges for legal and environmental contingencies. Meanwhile," he noted, "we remain very pleased with the operating results of Graphic Packaging Corporation." Coors Brewing Co. reported net sales of $286.4 million for the 1992 first quarter, down slightly from the prior year. Operating income for this business fell 3.8 percent to $6.8 million. Coors Brewing Co. sold 3,596,000 barrels of beer in the first quarter, 1.4 percent less than the 3,646,000 barrels sold a year earlier. A doubling of the company's satellite redistribution system during the first quarter shifted approximately 300,000 barrels of beer volume from this company's distributors to its redistribution centers. This shifting of inventories, which otherwise would have been recorded as sales, caused the reduction in sales and beer volume in the quarter. The impact on company sales is expected to end following the transition to the new distribution network and does not reflect adverse trends in this business nor in its cash flow. Coors Ceramics Co. reported lower operating results for the first quarter. Net sales were $42.4 million, down slightly from a year earlier, while operating results fell to a loss of $1.8 million. Sales for Golden Aluminum Co. decreased 13.7 percent to $23.5 million in the first quarter as a result of lower sales to Coors Brewing, which has converted to a can end (lid) that requires less aluminum. As expected, operating results declined dramatically for the first quarter because of the anticipated impact of continuing start-up costs at its aluminum rolling mill in San Antonio, Texas. Graphic Packaging continued to achieve excellent results, with first quarter operating income more than doubling this year to $6.0 million on a sales increase of 36.1 percent, primarily resulting from strong growth in sales to non-Coors customers. William Coors noted, "Graphic Packaging is a fine example of the potential of our diversification efforts. We see similar prospects for Golden Aluminum Company and Coors Ceramics Company." Adolph Coors Co., founded in 1873, is one of the 220 largest publicly traded industrial corporations in the United States. This diversified company operates businesses in brewing, aluminum rigid container sheet, ceramics and folding carton and flexible packaging. ADOLPH COORS CO. AND SUBSIDIARIES Summary of Operations Twelve Weeks Ended March 22, March 24, 1992 1991 (in thousands, except per share data) Barrels sold 3,596 3,646 Sales, net of excise taxes $383,484 $374,691 Income before income taxes $1,362 $10,209 Income taxes 600 3,900 Net income $762 $6,309 Net income per share of common stock $0.02 $0.17 Weighted average number of outstanding shares of common stock 37,499 37,388 Segment Information Operating Net Sales Income (Loss) First Quarter First Quarter 1992 1991 1992 1991 Beer business $286,352 $287,120 $6,777 $7,047 Ceramics business 42,364 42,371 (1,839) 2,045 Aluminum business 23,517 27,254 (645) 5,037 Packaging business 48,566 35,678 5,969 2,594 Developmental businesses 26,388 25,911 (1,797) (2,110) Corporate --- --- (4,008) (3,746) Intersegment activity (43,703) (43,643) (308) (59) $383,484 $374,691 $4,149 $10,808 -0- 4/22/92 /CONTACT: Dave Dunnewald or Becky Winning both of Adolph Coors Co., 303-277-2555 or 800-525-3786/ (ACCOB) CO: Adolph Coors Co. ST: Colorado IN: FOD SU: ERN
MC -- DV010 -- 1088 04/22/92 09:17 EDT
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|Date:||Apr 22, 1992|
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