Constellation Reports Big Drop in Earnings

Owner of Crown Imports see drop in profits

Constellation Brands fiscal third-quarter earnings fell 47% amid higher restructuring-related expenses.

At its Crown Imports beer joint venture with Grupo Modelo SA, sales declined 10% amid volume declines.

The company — which produces Robert Mondavi wines, Corona beers and other brands — began to see signs of sales stabilizing this past summer. Constellation also has made a series of restructuring moves, including streamlining its distribution network and product portfolio and revamping international operations amid weakness in the U.K. and Australia.

For the quarter ended Nov. 30, the company reported a profit of $44.1 million, or 20 cents a share, down from $83.5 million, or 38 cents a share, a year earlier. Excluding restructuring and other impacts, earnings fell to 54 cents from 60 cents.

Net sales, which excludes excise taxes, decreased 4% to $987.7 million amid the divestitures. Still, the decline wasn’t as steep as in recent quarter and organic sales, which exclude acquisitions, divestitures and currency impacts, were flat.