Constellation Brands Lowers Outlook After Posting 30% Drop in 3Q09 Profit

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Researched by Industrial Info Resources (Sugar Land, Texas)--Constellation Brands Incorporated (NYSE:STZ) (Fairport, New York), a leading international producer of alcoholic beverages, has announced that it is lowering its forecast for the year after posting a third-quarter 2009 net income of $83.5 million, down 30.2% compared with $119.6 million in the same period last year. Sales for the quarter totaled $1.03 billion, down 5.8% compared with last year. "Given the current macroeconomic environment impacting our key markets, we are recalibrating our sales expectations while taking appropriate actions to reduce costs and capture the benefits from ongoing debt reduction to better ensure that we will meet our future financial objectives," President and CEO Rob Sands said in a statement.

Sales fell about 7% to $1.31 billion, down from $1.41 billion a year ago, amid softening demand as a result of the global economic downturn. In fact, the entire brewing industry is feeling the effects. For more information, see related November 25, 2008, news article - "There's a Tear in My Beer:" Hard Times Creep into the Brewing Industry. Constellation has revised its earnings-per-share outlook of $1.68 to $1.76 down to $1.68 to $1.72.

Sales

• Wines: $919.8 million, down 6% from $977.4 million
• Spirits: $111.4 million, down 5% from $117.4 million
• Crown Imports (beer brands): $554.7 million, up 1% from $547.7 million

Constellation has more than 250 brands in its product portfolio, including SVEDKA Vodka and Corona. The company operates more than 50 wineries, distilleries and distribution facilities and sells products in more than 150 countries.

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