Molson Coors profit tops view; shares jump

By Martinne Geller

NEW YORK (Reuters) - Molson Coors Brewing Co (TAP.N: Quote, Profile, Research) reported much higher-than-expected quarterly profit on Tuesday, boosted by cost savings and strong beer sales in the United States, helping to send its shares up nearly 7 percent.

The maker of Molson Canadian and Coors Light said fourth- quarter net income increased 74.5 percent to $173.2 million, or 95 cents per share, from $99.2 million, or 57 cents per share, a year earlier.

Excluding special items, the company earned 73 cents per share, handily topping analysts' average estimate of 64 cents, according to Reuters Estimates.

Goldman Sachs analyst Judy Hong said the big surprise from Molson's results was the magnitude of cost savings at its U.S. and European divisions.

Overall marketing, general and administrative expenses were 3.3 percent lower in the quarter, as aggressive cost controls in Europe led to a 13 percent decline there.

The U.S. business saw $21 million in cost savings, the company said.

Currency fluctuations also aided quarterly income by $12 million, the company said. The weak dollar boosts the value of international sales when they are converted to dollars for inclusion on the company's income statement.

Net sales rose 4.5 percent to $1.6 billion even though sales volume fell 3.7 percent to 10.5 million barrels, due to one less selling week in the latest fiscal quarter.