DOW JONES NEWSWIRES Constellation Brands Inc. (STZ) boosted its free-cash-flow guidance and lowered its earnings view for fiscal 2009 after closing out of certain foreign currency hedges to take advantage of the strengthening U.S. dollar.
"As the company continues to refine certain of its international businesses, it has been reducing its foreign-exchange exposure by adjusting the amount of corporate parent loans to its operating companies around the world," said Chief Financial Officer Bob Ryder.
The wine maker, whose brands include Robert Mondavi and Ravenswood, said its earnings would be cut by 20 cents a share to a range of 63 cents to 71 cents, although its October guidance for adjusted earnings was unchanged at $1.68 to $1.76.
Constellation expects to realize about $50 million in cash proceeds from the settlement of the hedge transactions, increasing its fiscal-year free cash flow guidance by $50 million to a range of $360 million to $390 million. The company's pretax income won't be affected, although it will pay taxes on the hedge gains.
In October, the company swung to a fiscal second-quarter loss on a restructuring charge and said higher prices hurt U.S. wine sales volumes.
Constellation's shares were at $12.36, up 1.6%, in after-hours trading. Its shares closed Tuesday trading at $12.17.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com
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(END) Dow Jones Newswires
December 02, 2008 17:30 ET (22:30 GMT)

Publié le 02 Décembre 2008 Copyright © 2008 Dowjones