SOURCE: Rothman Research

Rothman Research

March 09, 2010 09:14 ET

Brewers Industry Has Good Start in 2010 Despite Weak Economy

JOHANNESBURG, SOUTH AFRICA--(Marketwire - March 9, 2010) -  www.rothmanresearch.com

Despite the weak economy the U.S have, brewers industry made it at the end of 2009, and currently have a good solid start in 2010. Analyst Mathew Collier from Rothman Research states that, "Molson Coors Brewing Company and Formento Económico Mexicano, S.A.B de C.V may have minimal growth opportunities in the market, but their significant cost cutting initiatives helped improve their profitability and expanded margins in recent years."

*The full research reports on Molson Coors Brewing Company (NYSE: TAP) and Formento Económico Mexicano, S.A.B de C.V (NYSE: FMX) are available for download when you register at http://www.rothmanresearch.com/index.php?id=6&name=Register

Fomento Económico Mexicano, S.A.B de C.V -- through its subsidiaries, operates as a beverage company in Latin America. It offers various beverage products ranging from juices, nectars, orangeades, vitamin water, hydro-tonics, energy drinks, and isotonic to green tea. Download full report on Fomento Económico Mexicano, S.A.B de C.V at http://www.rothmanresearch.com/article/tap/23213/Mar-09-2010.html

FEMSA achieved double-digit growth in the fourth quarter of 2009. It operates in three segments: Femsa Cerveza, Coca Cola Femsa, and Femsa Comerico. The company consolidated total revenues and income from operations grew 19.8% and 21.5% and continued its pace of strong growth and margin expansion. Income from operations increased 45.3%, resulting in an operating margin expansion of 240 basis points to reach an all-time high of 11.7% during 4Q09.

Molson Coors Brewing Company -- brews, markets, sells, and distributes beer brands. It is among the active traded gainers. The company reported double-digit underlying earnings growth in its first full year of operations. "It's tough out there, and we saw the effect of ongoing economic pressure and unemployment on beer sales, especially in the fourth quarter," said Molson Coors Brewing Company CEO Leo Kiely. Download full report on Molson Coors Brewing Company at http://www.rothmanresearch.com/article/fmx/23214/Mar-09-2010.html

The company increased 137.0 percent to $222.1 million for the fourth quarter last year, up from $93.7 million. The company is off to a solid start in the first half of this year, it gave a higher-than-expected forecast for 2010 free cash flow at its investors, reflecting the benefit of their strong brands, strategic initiatives, and cost reduction programs. Molson Coors expects 2010 free cash flow of $760 million, plus or minus 10 percent, on an underlying basis.

Peter Swinburn, Chief Executive of Molson Coors told an investor meeting that the brewer is interested in acquisitions as long as they add to earnings in the near term and are good for the business. Molson also raised their target for its cost-savings program by $50 million, saying they expect annual cost-savings of $150 million by 2012.

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