Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : BEER -- Ignore unavailable to you. Want to Upgrade?

To: SIer formerly known as Joe B. who wrote (2020)	9/25/2002 3:34:39 PM
From: AugustWest	Read Replies (1) \| Respond to of 3689

(COMTEX) B: Molson confirms profit guidance, details hedges against Braz B: Molson confirms profit guidance, details hedges against Brazilian exposure MONTREAL, Sep 25, 2002 (The Canadian Press via COMTEX) -- Shares of Molson Inc. jumped more than 10 per cent Wednesday after the brewery giant confirmed its financial expectations for the current year despite the economic woes of Brazil, where it made a major acquisition last spring. Molson shares (TSX:MOL.A) shot up $2.76 - or 10.28 per cent - to $29.60 in afternoon trading on the Toronto stock market after the announcement. Earlier Wednesday, Molson said it continues to expect earnings before interest and taxes to grow by 20 to 25 per cent this year, with a per-share profit of $1.95 to $2.00. Confronted with volatility in Brazil, Molson said it has made a series of moves to "insulate its operating results against adverse economic and currency fluctuations in Latin America." A hedging program against the Brazilian real, currently trading at about 3.75 to the American dollar, "has resulted in a fully hedged position to the U.S. currency up until the end of December 2002 and a partially hedged position to March 2003 at an average rate slightly under three reals to the U.S. dollar," Molson said. Molson's Brazilian operation has also raised beer prices, accelerated cost cuts and held down capital spending. Last March, Molson acquired the Kaiser brand and its brewing and bottling plants for $1.2 billion Cdn, making the Montreal-based company the second-largest brewer in Brazil. "From the minimal hedging position at the time of acquisition, significant progress has been made over the past months to manage Kaiser's currency exposure at the operating level," stated Molson CEO Daniel O'Neill. "Equally rapid has been the integration of our two Brazilian operations into one efficient and tightly managed brewing operation." The online source for news sports entertainment finance and business news in Ca ada Copyright (C) 2002 The Canadian Press (CP), All rights reserved -0- KEYWORD: MONTREAL SUBJECT CODE: business * end of story *