This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

MillerCoors 1Q Profit Rises On Cost Controls

NEW YORK (AP) â¿¿ MillerCoors' first-quarter profit rose slightly Tuesday on cost-cutting and higher prices even as sales of some brands slipped.

The maker of Miller Genuine Draft and Blue Moon earned $208.6 million for the period that ended March 31. That's up 1 percent from $206 million a year ago.

Excluding charges of $8.6 million related to severance and relocation costs, profit was $217.2 million.

"We successfully grew profit despite a challenging selling environment in the first quarter," CEO Leo Kiely said in a statement.

Revenue dipped 1 percent to $1.7 billion as sales of mainstay Miller Lite and Coors Light fell.

With unemployment levels still high, fewer people are going out to bars or restaurants for drinks, leading to lower beer sales. Many consumers have also traded down to cheaper brands in an attempt to save money, but there are signs some people willing to spend more money for craft beers as economic conditions start to improve.

Premium lights brand volumes, which include Miller Lite, Coors Light and MGD 64, fell mid-single digits in the quarter on a high single-digit drop in Miller Lite and low single-digit decline in Coors Light. This was somewhat offset by double-digit growth of the less expensive MGD 64.

MillerCoors' Craft and Import portfolio rose in the mid-single digits on double-digit growth of Blue Moon and a mid single-digit increase in Peroni Nastro Azzurro despite a soft import category.

Kiely said the company would continue to look at reducing its costs and put money into building its brands as the key summer selling season nears.

MillerCoors, based in Chicago, said domestic net revenue per barrel increased 2.1 percent when removing contract brewing and company-owned distributor sales.

MillerCoors, a joint venture made up of the U.S. businesses of Molson Coors Brewing Co. and SABMiller PLC, saved $60 million in the quarter. The company has saved $409 million since July 1, 2008, and said it is on track for $750 million in cost savings by the end of 2012.

Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs