Exhibit 99
[Anheuser Busch Companies Logo] News
For more information, contact:
Carlos Ramirez, (314) 577-9629
FOR IMMEDIATE RELEASE
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ANHEUSER-BUSCH COS. REPORTS
RECORD SALES, EARNINGS FOR FIRST QUARTER 2004
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22ND CONSECUTIVE QUARTER OF SOLID DOUBLE-DIGIT EPS GROWTH
ST. LOUIS, April 28, 2004 - With strong growth from all of its
major operating segments, Anheuser-Busch Cos., Inc. achieved record
first-quarter sales and earnings results, it was announced today by Patrick
Stokes, president and chief executive officer of the company. Stokes made
the announcement at the company's annual meeting of shareholders in Orlando,
Fla. Consolidated net sales increased 6.0 percent in the first quarter,
while earnings per share increased 17.5 percent.
First-quarter results benefited from a $19.5 million pretax gain
($.015 per share) from the sale of commodity hedges. This gain is reported
in other income/(expense) on the consolidated income statement and as such
does not impact gross profit or operating income. Earnings per share
excluding this gain increased 14.9 percent vs. first quarter 2003.
"Anheuser-Busch had another excellent quarter and continued its
track record of delivering consistent and dependable earnings growth. The
company has now achieved 22 consecutive quarters of solid double-digit
earnings per share growth. We remain confident in our ability to
consistently achieve our double-digit earnings per share growth objective
over the long-term and our 12 percent earnings per share growth target for
2004, excluding the benefit of the commodity hedge gain," said Stokes.
-more-
First Quarter Earnings
Anheuser-Busch
Add One
Strong growth in domestic revenue per barrel drove a continued
enhancement in profit margins in the quarter. Gross profit margin improved
60 basis points to 40.4 percent compared to the first quarter 2003, while
operating margin increased 30 basis points to 23.6 percent. Return on
capital employed increased 100 basis points over the past 12 months to 18.8
percent.
Domestic revenue per barrel grew 3.1 percent in the first quarter
2004 vs. the first quarter 2003. This growth reflects the company's
successful implementation of pricing actions on approximately two-thirds of
its domestic volume in two phases - October 2003 and February 2004, and
continued consumer trading up to the super premium Michelob family.
BEER SALES RESULTS
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The company's reported beer volume is summarized in the following
table:
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Beer Volume (millions of barrels)
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First Quarter 2004 vs. 2003
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2004 2003 Barrels %
--------------- --------------- --------------- ---------------
Domestic 25.1 24.9 Up 0.2 Up 0.8%
International 1.9 1.8 Up 0.1 Up 6.1%
--------------- --------------- --------------- ---------------
Worldwide A-B Brands 27.0 26.7 Up 0.3 Up 1.2%
Int'l Equity Partner Brands 4.4 4.3 Up 0.1 Up 1.9%
--------------- --------------- --------------- ---------------
Total Brands 31.4 31.0 Up 0.4 Up 1.3%
=============== =============== =============== ===============
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Domestic beer sales-to-wholesalers increased 0.8 percent for the
first quarter of 2004 vs. the first quarter 2003. Wholesaler
sales-to-retailers were up 2.5 percent in the first quarter vs. 2003,
including the benefit of leap day, led by the growth of the company's
Michelob ULTRA and Bud Light brands.
First Quarter Earnings
Anheuser-Busch
Add Two
The company's domestic market share (excluding exports) for the
first quarter 2004 was 51.7 percent, compared to first quarter 2003 market
share of 52.0 percent. The slight decline in market share is due to the
timing of 2004 beer shipments. Market share is based on company
sales-to-wholesalers. During the quarter, wholesaler sales-to-retailers
significantly exceeded the company's shipments to wholesalers, further
reducing wholesaler inventory levels. The company expects full-year market
share to increase. Domestic market share is based on estimated U.S. beer
industry sales using information provided by the Beer Institute and the U.S.
Department of Commerce.
International volume, consisting of Anheuser-Busch brands produced
overseas by company-owned breweries and under license and contract-brewing
agreements, plus exports from the company's U.S. breweries to markets around
the world, increased 6.1 percent for the first quarter. Worldwide
Anheuser-Busch beer sales volume for the first quarter 2004 rose 1.2
percent, to 27.0 million barrels, vs. first quarter 2003. Worldwide beer
volume is comprised of domestic volume and international volume.
International Equity Partner brands volume, representing the company's share
of its foreign equity partners' volume reported on a one-month lag,
increased 1.9 percent for the first quarter of 2004 vs. 2003, contributing
to the company's 1.3 percent increase in total brands volume.
FIRST QUARTER 2004 FINANCIAL RESULTS
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Key operating results for the first quarter 2004 vs. 2003 are
summarized below:
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($ in millions, except per share)
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First Quarter 2004 vs. 2003
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2004 2003 $ %
------ ------ ------- ---------
Gross Sales $4,003 $3,795 Up $208 Up 5.5%
Net Sales $3,477 $3,281 Up $196 Up 6.0%
Income Before Income Taxes $754 $670 Up $84 Up 12.5%
Equity Income $89 $74 Up $15 Up 19.4%
Net Income $550 $485 Up $65 Up 13.4%
Diluted Earnings per Share $.67 $.57 Up $.10 Up 17.5%
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First Quarter Earnings
Anheuser-Busch
Add Three
A discussion of financial highlights for the first quarter 2004
follows:
o Net sales increased 6.0 percent compared to the first quarter 2003,
driven primarily by a 4.4 percent increase in domestic beer segment net
sales (due to higher revenue per barrel and higher volume) along with
higher sales in all major operating segments.
o Income before income taxes increased 12.5 percent vs. the first quarter
2003, reflecting improved results for all of the company's operating
segments.
During the first quarter 2004, the company recognized a $19.5 million
pretax gain ($.015 per share) from the sale of commodity hedges in
place for future years. These hedges were originally placed using
estimates for costs to be contained in the renewal of a supply
contract. During the quarter, the company lowered its cost estimates,
resulting in significant hedge ineffectiveness in compliance with FAS
133. Due to the hedge ineffectiveness, the company sold the hedges and
realized the $19.5 million pretax gain. For business segment reporting
purposes, the gain is reported as a corporate item.
Pretax income for the domestic beer segment was up 7.9 percent for the
quarter, reflecting higher revenue per barrel and higher beer sales
volume. Domestic beer pretax income for the quarter includes a $19.1
million pretax gain ($.014 per share) related to the sale of two beer
wholesaler partnerships. For consolidation reporting purposes, the gain
is reported in other income/(expense), net.
First Quarter Earnings
Anheuser-Busch
Add Four
International beer segment pretax income improved 13 percent in the
first quarter vs. 2003 primarily due to volume and profit growth in
China and Canada.
Packaging segment pretax profits were up 9 percent in the first quarter
2004. This increase is primarily due to higher soft drink can volume
and improved plant operations.
Entertainment segment pretax results improved by $9.5 million, up 46
percent compared to the first quarter 2003, primarily due to increased
attendance and pricing.
o Equity income increased $15 million in the first quarter 2004 vs. 2003,
primarily reflecting the benefit of price increases implemented by
Grupo Modelo coupled with volume growth.
o Net income increased 13.4 percent over first quarter 2003. Diluted
earnings per share were $.67, an increase of 17.5 percent, compared to
the first quarter 2003. Earnings per share excluding the gain on
commodity hedges increased 14.9 percent 1/. Earnings per share continue
to benefit from the company's ongoing share repurchase program. The
company repurchased nearly 11 million shares in the quarter.
1/ Earnings Per Share Increase
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2004 2003
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Reported $.670 $.570 17.5%
Commodity Hedge Gain (.015) --
--------- --------
Excluding Hedge Gain $.655 $.570 14.9%
First Quarter Earnings
Anheuser-Busch
Add Five
Other Matters
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Anheuser-Busch will conduct a conference call with investors to
discuss first-quarter earnings results at 3 p.m. CDT today. The company will
broadcast the conference call live via the Internet. For details visit the
company's site on the Internet at www.anheuser-busch.com.
# # #
Notes
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1. Domestic revenue per barrel is calculated as net sales generated by the
company's domestic beer operations on barrels of beer sold, determined
on a U.S. GAAP basis, divided by the volume of beer shipped from the
company's breweries to U.S. wholesalers.
2. Return on capital employed is computed as 12 months of net income
before after-tax net interest (interest expense less interest
capitalized) divided by average net investment. Net investment is
defined as total assets less non-debt current liabilities. For 2004,
after-tax net interest expense was $235 million, calculated as pretax
net interest expense of $379 million less income taxes applied using a
38 percent tax rate. For 2003, after-tax net interest expense was $223
million, calculated as pretax net interest expense of $360 less income
taxes applied using a 38 percent tax rate.
This release contains forward-looking statements regarding the
company's expectations concerning its future operations, earnings and
prospects. On the date the 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 disclaims any
obligation to update any of these statements. The company's expectations
involve significant risks and uncertainties and are based upon 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. Further information on
factors that could affect the company's future operations, earnings and
prospects is included in the company's Forms 10-Q and 10-K.
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ANHEUSER-BUSCH COMPANIES, INC.
COMPARATIVE CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE)
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- ---------------------------------------------------------------------------------------------------------------------------
First Quarter Change 2004 vs. 2003
Ended March 31, Fav./(Unfav.)
------------------------------- --------------------------------
2004 2003 $ %
--------------- -------------- --------------- ---------------
Gross Sales $4,003.0 $3,794.9 $208.1 5.5
Excise Taxes (526.0) (514.3) (11.7) (2.3)
--------------- -------------- --------------- ---------------
Net Sales 3,477.0 3,280.6 196.4 6.0
Cost of Sales (2,073.3) (1,974.4) (98.9) (5.0)
Marketing, Distribution and
Administrative Expenses (582.3) (542.1) (40.2) (7.4)
--------------- -------------- --------------- ---------------
Operating Income 821.4 764.1 57.3 7.5
Interest Expense (101.7) (98.7) (3.0) (3.0)
Interest Capitalized 5.2 4.4 0.8 19.1
Interest Income 1.1 0.1 1.0 N/M
Other Income/(Expense), Net 27.6 (0.2) 27.8 N/M
--------------- -------------- --------------- ---------------
Income Before Income Taxes 753.6 669.7 83.9 12.5
Provision for Income Taxes (292.6) (259.3) (33.3) (12.9)
Equity Income, Net of Tax 88.9 74.4 14.5 19.4
--------------- -------------- --------------- ---------------
Net Income $549.9 $484.8 $65.1 13.4
=============== ============== =============== ===============
Basic Earnings Per Share $.68 $.58 $.10 17.2
=============== ============== =============== ===============
Diluted Earnings Per Share $.67 $.57 $.10 17.5
=============== ============== =============== ===============
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Increase/(Decrease)
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Amount %
--------------- ---------------
Capital Expenditures $199.0 $222.2 $(23.2) (10.4)
=============== ============== =============== ===============
Depreciation and Amortization $224.0 $214.5 $9.5 4.4
=============== ============== =============== ===============
Weighted Average Shares:
Basic 810.6 840.7 (30.1) (3.6)
=============== ============== =============== ===============
Diluted 820.6 850.5 (29.9) (3.5)
=============== ============== =============== ===============
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<FN>
N/M --- Not Meaningful
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ANHEUSER-BUSCH COMPANIES, INC.
BUSINESS SEGMENTS
FIRST QUARTER ENDED MARCH 31
(IN MILLIONS)
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Corporate &
Domestic Beer Int'l Beer Packaging Entertain. Other Elims. Consol.
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2004
Gross Sales $3,258.1 193.1 521.4 154.1 10.8 (134.5) $4,003.0
Net Sales:
- - Intersegment -- -- $210.1 -- 1.0 (211.1) $ --
- - External $2,766.4 158.8 311.3 154.1 9.8 76.6 $3,477.0
Income Before
Income Taxes $862.7 22.9 36.8 (11.0) (4.5) (153.3) $753.6
Equity Income -- $88.9 -- -- -- -- $88.9
Net Income $534.9 103.1 22.8 (6.8) (2.8) (101.3) $549.9
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2003
Gross Sales $3,138.8 166.2 497.0 125.8 12.1 (145.0) $3,794.9
Net Sales:
- - Intersegment -- -- $214.5 -- 1.1 (215.6) $ --
- - External $2,650.7 140.0 282.5 125.8 11.0 70.6 $3,280.6
Income Before
Income Taxes $799.6 20.2 33.8 (20.5) (2.6) (160.8) $669.7
Equity Income -- $74.4 -- -- -- -- $74.4
Net Income $495.8 86.9 21.0 (12.7) (1.6) (104.6) $484.8
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ANHEUSER-BUSCH COMPANIES, INC.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
(IN MILLIONS)
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- -----------------------------------------------------------------------------------------------------------
March 31, December 31,
2004 2003
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Assets
Current Assets:
Cash $138.4 $191.1
Accounts receivable 898.1 669.4
Inventories:
Raw materials and supplies 367.8 320.3
Work in progress 99.5 81.9
Finished goods 239.3 185.3
Total inventories 706.6 587.5
Other current assets 176.1 182.3
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Total current assets 1,919.2 1,630.3
Investments in affiliated companies 3,213.9 3,052.0
Plant and equipment, net 8,483.9 8,498.9
Intangible assets, including goodwill of $349.0
million in both periods 497.8 486.6
Other assets 996.9 1,021.7
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Total Assets $15,111.7 $14,689.5
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Liabilities and Shareholders Equity
Current Liabilities:
Accounts payable $979.1 $1,093.7
Accrued salaries, wages and benefits 237.0 288.9
Accrued taxes 419.1 163.1
Other current liabilities 363.6 311.5
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Total current liabilities 1,998.8 1,857.2
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Postretirement benefits 464.7 470.4
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Debt 7,532.3 7,285.4
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Deferred income taxes 1,501.9 1,462.1
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Other long-term liabilities 894.2 902.7
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Shareholders Equity:
Common stock 1,459.9 1,457.9
Capital in excess of par value 1,251.9 1,194.0
Retained earnings 14,307.0 13,935.4
Treasury stock, at cost (13,492.7) (12,939.0)
Accumulated other comprehensive loss (806.3) (890.3)
ESOP debt guarantee -- (46.3)
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Total Shareholders Equity 2,719.8 2,711.7
------------------ -----------------
Commitments and contingencies -- --
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Total Liabilities and Shareholders Equity $15,111.7 $14,689.5
================== =================
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ANHEUSER-BUSCH COMPANIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(IN MILLIONS)
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Three Months Ended March 31,
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2004 2003
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Cash flow from operating activities:
Net Income $549.9 $484.8
Adjustments to reconcile net income to cash provided by
operating activities:
Depreciation and amortization 224.0 214.5
Deferred income taxes 39.8 16.5
Undistributed earnings of affiliated companies (85.4) (57.4)
Other, net 64.3 42.9
---------------- ----------------
Operating cash flow before change in working capital 792.6 701.3
Increase in working capital (199.4) (103.5)
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Cash provided by operating activities 593.2 597.8
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Cash flow from investing activities:
Capital expenditures (199.0) (222.2)
Acquisitions (32.9) --
---------------- ----------------
Cash used for investing activities (231.9) (222.2)
---------------- ----------------
Cash flow from financing activities:
Increase in long-term debt 500.3 396.9
Decrease in long-term debt (200.8) (84.0)
Dividends paid to shareholders (178.3) (164.1)
Acquisition of treasury stock (578.6) (609.5)
Issuance of shares under stock plans 43.4 11.1
---------------- ----------------
Cash used for financing activities (414.0) (449.6)
---------------- ----------------
Net decrease in cash during the period (52.7) (74.0)
Cash, beginning of period 191.1 188.9
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Cash, end of period $138.4 $114.9
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