International MG&A expense increased 26 percent, driven by incremental brand investments in priority markets, along with infrastructure investments. Asset-value and cost adjustments in our China joint venture contributed 6 percent to the increase.
Underlying Corporate expenses totaled $55.2 million pretax for the second quarter. This reduction of $1.7 million was primarily due to lower project expense, partially offset by higher interest expense.
Special and Other Non-Core ItemsThe following special and other non-core items have been excluded from underlying pretax earnings. During the quarter, Molson Coors special items resulted in a $21.2 million pretax charge driven primarily by $10.4 million of goodwill and other intangible asset impairments related to our China business, a $7.2 million asset write-off related to the discontinuation of primary packaging and $4.5 million of restructuring charges in the UK, and $1.4 million of special termination benefit costs in Canada, partially offset by a $2.3 million gain related to Toronto flood insurance reimbursement. Other non-core items resulted in a $158.7 million pretax charge, driven by $152.4 million of Central Europe financing and acquisition-related expenses in Corporate ($74.1 million in Other Income, $55.5 million in Interest, and $22.8 million in G&A), an $8.6 million non-cash fair value adjustment to inventory and $2.5 million of acquisition-related expenses in Central Europe, and $0.5 million of acquisition-related costs in our International business. These charges were slightly offset by a $1.5 million unrealized mark-to-market gain on commodity hedges in Corporate COGS and a $3.8 million unrealized FX gain in Central Europe. During the quarter, MillerCoors reported a $2.3 million pension curtailment gain special item. This equates to $1.0 million at Molson Coors’ 42 percent economic ownership share. 2012 Second Quarter Earnings Conference Call Molson Coors Brewing Company will conduct an earnings conference call with financial analysts and investors at 11:00 a.m. Eastern Time today to discuss the Company’s 2012 second quarter results. The Company will provide a live webcast of the earnings call.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV