Molson Coors has worst trading day since 2005

MONTREAL Molson Coors Brewing Co. had its worst trading day in more than a decade after the company widely missed expectations largely because of weakness in the United States.

The company’s shares sank 14.6 per cent to US$61.22 in trading on the New York Stock Exchange, hitting a nearly four-year low. That was the biggest one-day fall since April 2005. The loss was less severe in Toronto, where fewer of the company’s shares are traded. The stock lost 6.3 per cent at C$93.93, just above a 52-week low.

The Denver and Montreal-based company said its sales fell 4.8 per cent to US$2.33 billion in the first quarter compared to the prior year quarter. Sales in the U.S., which account for more than 70 per cent of global revenues, were down 5.8 per cent.

Canadian sales decreased 2.5 per cent to US$283.8 million. They were also down in Europe and international markets.

Net earnings attributable to shareholders were US$278.1 million or $1.28 per diluted share, compared with US$208.5 million or 96 cents per share a year ago.

The profits included a US $328 million gain from an adjustment on the purchase of Miller International and increased pricing.

Molson Coors chief executive Mark Hunter tried to downplay the results, noting they came in a small quarter and as the entire U.S. beer industry had a softer-thananticipated start to the year.