Coors Profits Off Sharply Despite Increase in Sales

Adolph Coors Co. announced a sharp decline in net income for the fiscal first quarter of 1985, despite increases in net sales and barrel sales.

Net sales for the 12-week first quarter ended March 24 were a record $244.53 million, a 12.9% increase over net sales of $216.65 million during the like quarter in 1984. Net income was $644,000, compared to $7.25 million a year earlier.

“Net sales increased in the first quarter due primarily to the strength of beer shipments and higher non-beer business sales,” Chairman and Chief Executive William K. Coors said.

“However, net income was adversely affected by costs related to the company’s aggressive marketing and expansion efforts, particularly advertising, and continued high start-up expenses at the Aluminum Recycling Center and grain processing facility.”

Coors Porcelain Co., which experienced a record year in 1984, continued its strong performance in the first quarter of 1985.

In addition, Coors said: “Income from our beer business is expected to show significant improvement for the remainder of 1985 due to increased sales volume, higher selling prices and cost-cutting measures implemented this year.”

Beer shipments for the first quarter increased 8.2% to 2.66 million barrels, compared to 2.46 million barrels sold during the like quarter in 1984.

“Our barrels sales volume reflects the increased shipments of our products to the Western United States and the impact of sales in the 1984 and 1985 expansion areas,” Coors said.