Canada, Toronto: Sleeman Breweries Ltd.’ shares dropped 3.6 % on March 11, after several analysts trimmed their financial forecasts in the wake of the brewer's flat fourth-quarter profit and cautious outlook. According to Reuters, shares of Guelph, Ontario-based Sleeman fell 52 Canadian cents to C$13.78 on the Toronto Stock Exchange, hitting their lowest level since November 2004.
Sleeman, whose brands include Honey Brown and Cream Ale, reported a profit on Thursday of C$3.9 million, or 23 Canadian cents a share, for the fourth quarter ended Jan. 1. That compared with a profit of C$3.9 million, or 24 Canadian cents a share, in the same period a year earlier, as growth was hit by severe price discounting in the Ontario market.
The brewer forecast earnings growth of at least 10 percent for 2005, slightly below the previous year's forecast of 10 % to 15 %. This triggered a number of investment houses to reduce their profit forecasts.
National Bank Financial trimmed its 2005 profit forecast and lowered its target price on the stock to C$15 from C$16. Desjardins Securities also cut its 2005 profit forecast and lowered its target price to C$15 from C$16. Dundee Securities Corp. reduced its target price on Sleeman's stock to C$15.25 from C$16.50 and cut its profit forecast for 2005. Scotia Capital trimmed its 2005 and 2006 profit forecasts, citing higher expenses required to support growth in Sleeman's premium brand portfolio. CIBC World Markets reduced its profit forecast for 2005 but lifted its target price to C$15 from C$14.50.
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