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MBA stock index ahead 22 points in Ist quarter.

MBA Stock Index ahead 22 points in 1st quarter

The Modern Brewery Age Stock Index closed the books on a quarter of parabolic gains, as investors, emboldened by the end of the Gulf war and looking for a quick end to the nation's recession, rushed to catch the rising stock market.

The box score for this index of seven brewers: up an eye-popping 22 percent to 2574.05 in just three short months.

In its wake stood the Dow Jones Industrial Average, which for all intents and purposes, also had a tremendous first quarter. The bottom line for this blue-chip index: up 10.6 percent to 2913.86.

The accompanying stock table (please see page 1) is littered with stocks posting dramatic gains last quarter, but none shone brighter than Molson whose Class A and Class B shares swelled 32 percent and 34 percent, respectively. As mentioned in this column last quarter, Molson, bolstered by strong results at its brewing division, posted an eight-percent increase in net income during the first half of 1990. Specifically, profits at Molson rose to $76 million from $70 million in 1989.

Next in line stood Anheuser-Busch, which leapt 23 percent to a new high of $52.88. The company recorded an 11-percent gain in fourth-quarter net income to $142 million from $128 million, as its share in the beer industry rose another 1.7 percent to 43.7 percent in 1990.

Adolph Coors wasn't nearly so kind to its shareholders last quarter, as fourth-quarter sales fell 10.3 percent while a $30-million pretax charge, related to cleaning a landfill site, marred what was a good year for the Golden, CO, brewer. As a result, the company recorded a wider-than-expected fourth-quarter loss of 47 cents a share. Coors lost 54 cents a share in the same period last year. Coors' stock, however, still trended upward last quarter, notching a $2.38-a-share, 11.6-percent advance to expire at $22.88.

In closing, Japan's Kirin Brewery began trading in the United States and is now listed on NASDAQ under the ticker symbol of KNBWY. Kirin closed the quarter with the smallest gain, as not a single brewer in our financial barometer finished in negative territory. The bottom line for Kirin last quarter: up a nominal $2.00 a share to $106.50.
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Title Annotation:Modern Brewery Age
Publication:Modern Brewery Age
Date:Apr 8, 1991
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