Constellation Brands Reports Net Loss of $610 Million for Fiscal 2008

Constellation Brands, a producer and marketer of beverage alcohol, has incurred a net loss of $610 million, or $2.82 diluted loss per share, for fiscal 2008 on a reported basis, compared to net income of $332 million, or $1.38 diluted earnings per share for fiscal 2007.

The net loss was driven by an estimated $822 million of impairment charges primarily related to goodwill and intangible assets associated with the company’s Australia and UK businesses and a $52 million deferred tax asset valuation allowance.

Fiscal 2008 net income on a comparable basis, which excludes acquisition- related integration costs, restructuring charges and unusual items, totaled $321 million, or $1.44 diluted earnings per share (EPS), versus comparable basis net income of $403 million and diluted EPS of $1.68 for fiscal 2007.

The company has reported a net loss of $832 million, or $3.90 loss per diluted share for the fourth quarter of fiscal 2008, and operating loss of $735 million for the fourth quarter of fiscal 2008.

Rob Sands, president and CEO of Constellation Brands, said: “For fiscal 2008, we achieved our strategic initiatives and exceeded our key financial goals. We exceeded our comparable earnings per share estimate for the year and generated record free cash flow of $376 million, which also exceeded our forecast.”