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Constellation Brands Inc. reported a drop in second-quarter profit Friday, due in part to increased expenses and a planned increase in promotional spending for its U.S. wine and spirits business.
The Victor-based firm posted net income of $125 million, or 67 cents a diluted share, versus net income of $163 million, or 76 cents a diluted share, a year earlier. Sales were $699 million, up $690 million.
Analysts polled by Thomson Reuters expected Constellation Brands to report earnings per share of 54 cents on sales of $710 million.
Constellation Brands reported earnings per share on a comparable basis, excluding special items, of 71 cents.
“As we execute our profitable, organic growth strategy, we are encouraged by the strength of our core beer, wine and spirits businesses, including the success of our new product introductions and innovation pipeline across our entire portfolio of outstanding brands,” said Robert Sands, president and CEO, in a statement.
The company expects full-year diluted earnings per share of $1.87 to $1.97.
Shares of Constellation Brands (NYSE: STZ) were trading midday at $36.21, up 4 percent from Thursday’s close of $34.72.
Constellation Brands ranked 14th on the most recent Rochester Business Journal list of manufacturers with 620 local workers.
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