BOSTON, Sept. 6 /PRNewswire-FirstCall/ -- Management continues to expect accelerated sales and earnings growth in the second half of the year and earnings per share growth for the full year to exceed its 7 to 10 percent long-term objective,(1) Anheuser-Busch executives told investors in a presentation given today at the Lehman Brothers Consumer Conference. "We are adapting our portfolio and entire system to meet the demands of a changing marketplace and we are making good progress at strengthening our company's foundation for sustainable long-term growth," said August A. Busch IV, president and chief executive officer of the company. U.S. beer industry volume in 2006 and year-to-date has grown at a healthy pace. Over this period, import and craft beers in particular have enjoyed strong growth and Anheuser-Busch has added considerably to its portfolio and presence in these growing segments through alliances, acquisitions and new product development. The company has also been leveraging its superior distribution system to pursue high-margin growth opportunities in non-alcohol beverages, such as energy drinks and super-premium waters. While Anheuser-Busch's U.S. beer sales-to-retailers were below expectations in the first half of the year, volume trends have shown improvement in the second half. So far in this quarter, total sales-to-retailers are up 2.4 percent, with both new brands and core brands contributing to growth.(2) The pricing environment in the U.S. beer industry also was cited as favorable. Anheuser-Busch's revenue per barrel was up 2.7 percent in the first half of the year,(3) benefiting in part from improved portfolio mix, and is expected to significantly exceed this level of increase for the second half of the year. The company is planning to increase prices on the majority of volume early next year, with some increases coming in the fourth quarter of this year. In addition, management continues to aggressively pursue productivity improvement, targeting $300 to $400 million in cost savings over the next four years. Busch also provided highlights of the company's international beer business. Net income from international beer has grown an average of 20 percent per year since 1999. The majority of international beer profits are driven by the company's 50 percent investment in Grupo Modelo, the leading brewer in Mexico and the brewer of Corona, the leading U.S. import brand. Modelo's new Crown import joint venture is significantly enhancing Anheuser-Busch's equity income growth this year. Elsewhere, Anheuser-Busch is building a solid leadership position in China, the largest and fastest growing market in the world, among its other international efforts. W. Randolph Baker, vice president and chief financial officer, highlighted the company's substantial cash flow. In December, the company announced a more aggressive financial leverage target to more efficiently support existing operations, acquisitions, dividend growth and share repurchasing, while maintaining considerable financial flexibility. Cash returned to shareholders has increased significantly this year. The company announced an 11.9 percent increase in its quarterly dividend in July and continues to expect to spend $2.5 billion for share repurchases in 2007. Other Matters As previously announced, Anheuser-Busch Companies' Lehman Brothers Consumer Conference presentation will be broadcast live over the Internet today beginning at 1:30 p.m. EDT. A replay will be available on the company's Web site. For details visit http://www.anheuser-busch.com/. Notes 1. Calculation of 2006 Earnings per Share for 2007 Comparison Purposes The table below sets forth the assumption used in comparing 2007 normalized earnings per share expectations to normalized 2006 results. 2006 Earnings Per Share Full Year Reported $2.53 Texas Income Tax Legislation Benefit in 2Q (0.01) Excluding One-Time Benefit $2.52 2. Sales-to-retailers results are on a comparable selling day adjusted basis and include the contribution of newly acquired and alliance brands. Core brand sales-to-retailers are up 0.8 percent quarter to date. 3. Domestic revenue per barrel is calculated as net sales generated by the company's U.S. beer operations on barrels of beer sold, determined on a U.S. GAAP basis, divided by the volume of beer shipped to U.S. wholesalers. In the accompanying presentation, the following term is used: 4. The cash flow to total debt ratio is defined as: operating cash flow before the change in working capital, adjusted for pension contributions less service costs; divided by total debt, adjusted to include the funded status of the company's single-employer defined benefit pension plans This release contains forward-looking statements regarding the company's expectations concerning its future operations, earnings and prospects. On the date the forward-looking statements are made, the statements represent the company's expectations, but the company's expectations concerning its future operations, earnings and prospects may change. The company's expectations involve risks and uncertainties (both favorable and unfavorable) and are based on many assumptions that the company believes to be reasonable, but such assumptions may ultimately prove to be inaccurate or incomplete, in whole or in part. Accordingly, there can be no assurances that the company's expectations and the forward-looking statements will be correct. Important factors that could cause actual results to differ (favorably or unfavorably) from the expectations stated in this release include, among others, changes in the pricing environment for the company's products; changes in U.S. demand for malt beverage products, including changes in U.S. demand for other alcohol beverages; changes in consumer preference for the company's malt beverage products; changes in the distribution for the company's malt beverage products; changes in the cost of marketing the company's malt beverage products; regulatory or legislative changes, including changes in beer excise taxes at either the federal or state level and changes in income taxes; changes in the litigation to which the company is a party; changes in raw materials prices; changes in packaging materials costs; changes in energy costs; changes in the financial condition of the company's suppliers; changes in interest rates; changes in foreign currency exchange rates; unusual weather conditions that could impact beer consumption in the U.S.; changes in attendance and consumer spending patterns for the company's theme park operations; changes in demand for aluminum beverage containers; changes in the company's international beer business or in the beer business of the company's international equity partners; changes in the economies of the countries in which the company's international beer business or its international equity partners operate; future acquisitions or divestitures; and the effect of stock market conditions on the company's share repurchase program. Anheuser-Busch disclaims any obligation to update or revise any of these forward-looking statements. Additional risk factors concerning the company can be found in the company's most recent Form 10-K. DATASOURCE: Anheuser-Busch CONTACT: Kelli Powers of Anheuser-Busch, +1-314-577-9618 Web site: http://www.anheuser-busch.com/

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