Molson Coors Brewing Q4 Profit Down, Hikes Dividend; To Buy Back $1 Bln Stock

(RTTNews) - Molson Coors Brewing Co. (TAP, TPX.TO) reported that its fourth-quarter net income attributable to the company dropped to $94.1 million from the prior year's $137.2 million, with earnings per share declining to $0.50 from $0.74 last year.

On a U.S. GAAP basis, the company reported a 31.9 percent decline in net income from continuing operations attributable the company to $93.2 million, primarily due to a higher effective tax rate, unfavorable foreign currency, lower worldwide volumes and increased brand investments.

Underlying after-tax income was $102.1 million or $0.55 per share, down from $129.2 million or $0.70 last year. The company posted a 21.0 percent decrease in underlying after-tax income for the fourth quarter 2014, driven by unfavorable foreign currency, increased brand investments and incentive compensation this year, along with lower volume in the U.S. and Canada, and the termination of our Modelo brands agreement in Canada.

Worldwide beer volume in the fourth quarter of 14.0 million hectoliters decreased 0.3 percent. Full year worldwide beer volume in 2014 of 59.0 million hectoliters decreased 1.3 percent.

Net sales for the quarter were $973.8 million, down 5.3% from last year, While it was up 0.9% in constant currency.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.69 per share and revenues of $969.18 million for the quarter.

Molson Coors Brewing Company announced that its board has approved a new program authorizing the repurchase, effective immediately, of up to $1.0 billion of the Company's Class A and Class B Common stock, with an expected term of four years, which replaces all prior stock repurchase programs. The Company anticipates that the stock repurchases will be weighted toward the last two years of the program.

Molson Coors Brewing also declared an increased regular quarterly dividend of $0.41 per share, payable March 16, 2015, to Class A and Class B shareholders of record on February 27, 2015. This dividend represents an 11 percent increase from the previous quarterly rate of $0.37 per share and raises the annual dividend rate to $1.64 per share.