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Molson Coors 2Q Profit Rises 18 Percent

Tuesday August 7, 2:21 PM EDT

DENVER (AP) — Molson Coors Brewing Co., one of the world's largest brewers, said Tuesday its second-quarter profit rose 18 percent fueled by strong sales of Coors Light in the U.S. and Canada.

The Denver-based brewer's operations in Europe, however, turned in a weaker performance compared with the year-ago quarter due to the timing of the World Cup soccer tournament in 2006 and poor weather.

The results beat Wall Street estimates, although some analysts noted the company benefited from shifts in inventory in North America and a lower tax rate.

For the quarter ending July 1, net income rose to $185 million, or $2.04 per share, from $156.2 million, or $1.81 per share in the prior year quarter.

The most recent results included charges of $25.4 million, a gain on the sale of an equity interest in a Canadian business and a one-time tax benefit. Excluding special items, Molson Coors earned $176.1 million, or $1.94 per share.

Revenue rose 6 percent to $1.68 billion from $1.58 billion in the second quarter of 2006.

Analysts polled by Thomson Financial had forecast earnings of $1.72 per share on revenue of $1.63 billion.

Sales volume rose 0.7 percent to 11.5 million barrels across the company while the cost of goods sold rose 5.1 percent to $966.9 million, the company said.

Sales-to-retail increased 1.6 percent in the United States, gained 1.1 percent in Canada and slipped 7.5 percent in Europe.

In the United States, the company reported low single-digit growth of Coors Light, mid-single growth of Keystone Light and double-digit growth of Blue Moon.

The brewer said strong growth in Coors Light and other brands in Canada was offset by a decline in premium discount and unsupported products. It marked the first time in four years that Molson Coors' Canada business increased quarterly market share.

Molson Coors' stock price rose 15 cents to $92.32 in early trading Tuesday. In the past year, it has ranged from $64.25 a share to $99.24 a share.