While Molson Coors investors may not have seen spectacular gains in 2006, the world's fifth-largest brewer did improve profitability and sales amid a weak domestic beer market.
The AP report, courtesy of the Houston Chronicle, describes the challenges the company faced this year. Then things started to turn:
The company weathered flat sales volume in the third quarter and reported a 25.5 percent increase in profit. After excise taxes, net sales totaled $1.58 billion, beating Wall Street expectations. President and CEO Leo Kiely told analysts the company expects to achieve the $175 million of cost savings promised when Adolph Coors Co. and Molson Inc. merged in 2005.
"Overall, we believe our third-quarter results demonstrate we're making consistent progress and strengthening the fundamentals of our company, even while we face tough competitive and cost pressures in all of our markets," Kiely said.
Like I said in the earlier post, things could always go wrong with this holding. Or any holding, for that matter. But it looks like Molson Coors will be a steady (if not spectacular) contributor to the portfolio.
Then again, since I'm confident of that, who knows how far south it will go?
TAP 1-yr chart