Molson Coors Reports Second Quarter 2008 Financial Results

A major achievement during the quarter was the formation of MillerCoors, creating a single, stronger, more competitive American brewer with a powerful portfolio of brands and economies of scale to win in the U.S. beer market.

06/08/08 Molson Coors Brewing Company reported higher sales volume and net sales and lower earnings per share for the fiscal second quarter ending June 29, 2008.

Second Quarter Highlights

Key results for the Company's fiscal second quarter ended June 29, 2008, compared to the fiscal second quarter ended July 1, 2007, include the following:

- A major achievement during the quarter was the formation of MillerCoors, creating a single, stronger, more competitive American brewer with a powerful portfolio of brands and economies of scale to win in the U.S. beer market.

- Net sales increased 4.8 percent to $1.76 billion.

- Net sales per barrel increased 3.9 percent.

- Sales volume increased 0.9 percent to 11.6 million barrels, or 13.6 million hectoliters (HLs).

- Total Company sales-to-retail (STRs) rose 2.3 percent.

- Cost of goods sold per barrel increased 5.9 percent.

- Marketing, general and administrative expenses rose 1.4 percent.

- Income from continuing operations, a U.S. GAAP earnings measure, was $93.3 million after tax, compared to $184.3 million in the second quarter of 2007. The change is attributable to higher special charges, increased energy and commodity inflation in all markets, and a higher effective tax rate for the quarter.

- Underlying after-tax income was $172.6 million, or $0.93 per diluted share, in the second quarter 2008, a 2.0 percent decline from $176.1 million, or $0.97 per diluted share, last year. The company calculates non-GAAP underlying income by excluding special and other one-time items from the nearest U.S. GAAP earnings measure.

- To calculate underlying income in the second quarter of 2008, the company excluded net special charges of $103.9 million pretax. The charges were driven by a non-cash write-down of the book value of the Molson brands sold in the U.S.; MillerCoors retention, planning and integration expenses; and transition costs related to the outsourcing of shared services.

All $ amounts are in U.S. Dollars. See "Special and Other One-Time Items" and "Discontinued Operations" as well as tables below for reconciliations to nearest U.S. GAAP measures.