Canada: Sleeman lowers its full year outlook for fiscal 2005

Sleeman Breweries has slashed its preliminary 2005 earnings guidance, citing the impact of competitive pressure in the beer market, as its shares dipped more than five per cent, according to Canadian Press of January 24.

Earnings per share, excluding non-recurring items, should be between 60 and 64 cents a share - lower than previously announced guidance of 81 to 85 cents per share, the Guelph-based company said on January 24.

Sleeman stock dropped 71 cents to $12.77 in morning trading on the Toronto Stock Exchange. It has traded in a range between $11 and $15.59 over the past 52 weeks.

"The principle reason for the reduced outlook was competitive pricing, which increased in key markets through most of the fourth quarter," the company said.

"The industry experienced compressed margins during the quarter, most notably in the province of Quebec," chairman-CEO John Sleeman said in a release."On a positive note, Sleeman market share and volumes remained consistent with prior year levels in the face of this pricing environment." The company said the pricing environment "will likely continue to impact earnings for the first part of 2006."

Actual fourth-quarter and full-year 2005 earnings are to be announced March 2, 2006.

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