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Brewery stocks post modest losses in second quarter.

As the economy sputtered along in the second quarter of 1991, so too did brewery stocks.

In fact, a tug-of-war between expectations of strong second-quarter earnings reports for many brewery concerns and dwindling hopes for a short-lived recession, created a very tough environment for the shareholders of brewery stocks during this year's second quarter.

Nowhere was this battle more evident than in the Modern Brewery Age Stock Index, which monitors the financial health of the seven stocks in the accompanying table (please refer to page 1) each quarter.

The box score for our indicator in the second three-month stanza of 1991: down 58.22 points, or 2.26 percent, before finally coming to rest at 2515.83. One quarter ago, this indicator soared 22 percent of 2574.05 before the second quarter sell-off whittled that down to its present value.

In comparison, the Dow Industrials closed 0.24-percent lower than where it began the second quarter, but in between vaulted to a record high of 3035. The Dow Jones Industrial Average closed at 2906.75 at quarter's end.

Anheuser-Busch bore the brunt of the second quarter's sell-off, falling just under nine percent in value to close at $48.25. Kidder Peabody last quarter downgraded the stock to "hold" from "buy" after cutting its estimates for the brewer.

Anheuser-Busch earned 70 cents a share in the first quarter of 1991, compared to earnings per share of 64 cents in the same quarter of 1990.

Coors, meanwhile, backtracked a modest 50 cents a share last quarter en route to a close of $22.38. Unlike Anheuser-Busch, Coors' earnings have been sliding a bit lately. Specifically, the Golden, CO-based concern recorded first-quarter earnings per share of 17 cents, down from 21 cents a share in the year-earlier period.

In other news, a number of Coors distributors around the country have compalined about a shortage of Coors beer for sale during the first stages of summer, bringing to light the company's shortage of production capabilities and the need for further brewery acquisitions in the near future.

Genesee toppled a nominal $1.00 a share to conclude the mid-point of 1991 at $34.00. Not even a strong income statement could push the stock higher last quarter. In mid-June, the brewer said fiscal 1991 earnings per share swelled to 43.71 from $1.97 in fiscal 1990.
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Publication:Modern Brewery Age
Date:Jul 15, 1991
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