Boston Beer's net income tumbles 48 pct in 2Q

BOSTON (AP) — Lower inventory at some of Boston Beer Co.'s wholesalers and rising costs contributed to a 48 percent drop in second-quarter net income for the maker of Sam Adams brew.

The company's profitability declined as it had to pay more for barley and other ingredients, and saw other costs rise. Boston Beer hiked prices, which helped offset some of the rising costs. A big tax gain in the prior-year quarter also factored in the sharply lower comparison for the April-June quarter, the company said Wednesday. But the results missed Wall Street's expectations, and shares of Boston Beer sank more than 8 percent in aftermarket trading.

The brewer reported net income of $14.4 million, or $1.06 per share, for the three months ended June 30. That compares with net income of $28 million, or $2.01 per share, in the same quarter last year. Earnings in the latest quarter were reduced by about 13 cents per share because inventory at some wholesalers declined.

Excluding the impact of the reduced wholesaler inventory and other special items, Boston Beer would have earned $1.19 per share in the latest period. However, the results still fell short of analysts' consensus forecast, which called for earnings per share of $1.27, according to FactSet.

Revenue rose 10 percent to $147.5 million from $134 million as its core shipment volume climbed 7 percent to 690,000 barrels. The company said demand for its Samuel Adams Seasonal, Twisted Tea and Angry Orchard brands was particularly strong during the quarter.

Analysts had expected slightly higher sales of $151.6 million.

The company did not veer from its 2012 earnings per share forecast range of $3.80 to $4.20. That's still lower than analysts' projection of $4.25 per share.

Boston beer shares ended regular trading down $1.10 at $106.62. The stock fell $8.62, or 8.1 percent, to $98 in extended trading.