Canandaigua 1st-Quarter Profit Up 36%

Canandaigua Brands Inc., the nation’s second-largest wine producer, said its fiscal first-quarter profit rose 36%, continuing its turnaround. The Fairport, N.Y.-based company also announced a $100-million stock buyback. Net income rose to $13.6 million, or 70 cents a diluted share, from $10 million, or 53 cents, a year ago, beating analyst estimates by 2 cents. Sales rose 2.3%, to $312.9 million from $306 million. Sales of beer jumped 22%, offsetting a 5% decline in wine sales. Canandaigua makes Inglenook and Paul Masson wines and makes or distributes St. Pauli Girl beer and Mr. Boston spirits. The company said it plans to add two new wine product lines and increase promotional spending to promote its new Mystic Cliffs premium wines. Canandaigua also said it will buy back about 2.1 million shares, or 14% of shares outstanding. Canandaigua’s shares were unchanged at $47.75 on Nasdaq.