Seagram Profit Up 4%, but Warning on Asia Issued

Seagram Co.’s fiscal first-quarter profit rose a better-than-expected 4% on improved performances by its liquor, juice and music businesses, though shareholders were warned that problems in the Asian economies could affect future earnings.

Net income for the quarter ended Sept. 30 rose to $133 million, or 37 cents a share, from profit--before a one-time gain--of $127 million, or 34 cents, in the year-earlier period.

At its annual meeting Wednesday, the company came under fire for distributing gangsta rap music containing lyrics considered offensive to African Americans and women.

“We want you to understand [that] some music that Seagram produces and promotes is tearing at the very core of our dignity and self-respect,” William Tucker told the Montreal-based beverage and entertainment company’s annual meeting, to applause from the audience.

Seagram Chief Executive Edgar Bronfman Jr. said the company’s Universal Music unit has established an internal review process to monitor the content of music released under its labels. He said Universal is focused on trying to strike a balance among an artist’s desire for self-expression, marketplace preferences and demands, and community standards.

While the company managed to surprise analysts with earnings that were ahead of forecasts, Bronfman told the annual meeting that liquor sales in Asian-Pacific markets may suffer because of economic turmoil and currencies whose values have been battered against the U.S. dollar, the currency in which Seagram does business.