USA: Beer lovers to pay more for a Budweiser in 2006
Beer drinkers will have to pay more for Budweiser this year after Anheuser-Busch Cos. Inc., the nation's biggest brewer, said on February 1 its fourth-quarter profit plunged 39.5 percent from a year ago, according to Associated Press.
The maker of Budweiser, Bud Light and other beers earned $201 million, or 26 cents per share, for the period ending Dec. 31, down from $332 million, or 42 cents per share, a year earlier.
In the wake of those lackluster results, the company plans to boost profit by raising prices in 2006. Chief Financial Officer Randolph Baker said Wednesday price increases started in selected markets this month, with a jump of 2 percent to 3 percent to be initiated nationwide by year's end.
In an unusual move, Baker declined to predict how much beer the company will sell this year, indicating uncertainty about the industry's future performance overall.
Sales were slow in the final quarter of last year, with gross revenue rising to $3.882 billion from $3.880 billion the previous year. After excise taxes are deducted, net revenue was $3.365 billion versus $3.367 billion a year ago. Analysts were looking for earnings of about 27 cents per share, according to a Thomson Financial poll.
Shares of Anheuser-Busch fell 4 cents to close at $41.40 in trading Wednesday on the New York Stock Exchange. Its shares are trading near the lower end of their 52-week range of $40.15 to $50.10.Aheuser-Busch said lower domestic beer revenue was mostly offset by higher sales of international beer, packaging and entertainment operations.
"We've had a challenging year in the domestic beer business and our 2005 sales and earnings per share were disappointing," President and Chief Executive Officer Patrick Stokes said in a news release. "However, as we move into 2006 we are encouraged with the progress of the company's initiatives to enhance beer volume and market share growth."Stokes declined an interview request Wednesday. For the year, Anheuser-Busch reported net income of $1.8 billion, or $2.35 a share, versus $2.2 billion, or $2.77 a share, a year ago. Total revenue rose to $17.25 billion, up from $17.16 billion the previous year. After excise taxes, net revenue was $15.04 billion, up from last year's $14.93 billion.
Tilbage
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