MillerCoors reports lower profit on decreased volume

Currency fluctuations in Canada and Europe reduced pretax earnings by $31.9 million in the most recent quarter. The company reported $1.40 Earnings Per Share for the quarter, beating the analyst consensus estimate by $0.11.

Its shares slipped a penny to $87.41 in premarket trading shortly ahead of the market open. Sales declined in all the geographical segments of Canada, Europe and worldwide.

MillerCoors still made $344 million in profit last quarter.

Net sales rose 0.7 percent, excluding the impact of a strong dollar, the company said. The higher price target estimate is at $100 and the lower price target estimate is expected at $84 according to 4 Analyst. The termination of several brand agreements also cut into revenue.

Molson Coors reportedly is seeking a majority stake in MillerCoors, its US joint venture with SABMiller. He will remain in that position until the company finds a replacement for outgoing chief financial officer Gavin Hattersley, who is also CEO of MillerCoors, which is the joint venture between Molson Coors and SABMiller PLC.

In other Molson Coors Brewing Company news, Director Andrew Thomas Molson sold 1,500 shares of the stock in a transaction that occurred on Thursday, August 13th.

The company declined to comment during the conference call on media reports that it has entered into negotiations with SABMiller to purchase its 58 per cent stake in MillerCoors.

On Thursday, MillerCoors reported a drop of 3.4% in its net sales, hurt by less demand for one of its beers – Coors Light.

Molson Coors Brewing (NYSE:TAP), the world’s largest beer company, posted better-than-expected third-quarter profit, buoyed by solid demand for its higher-margin brands.

Additionally, the company has committed to use an additional $50 million of cash for Class B common stock repurchases in the fourth quarter.