Seagram Says Mca Results Fall As Expected

As anticipated, MCA's pro forma results were down due to the strategic investment in new music artists and labels, and intensified marketing efforts in anticipation of the second quarter theme park openings of Terminator 2:3-D at Universal Studios Florida and Jurassic Park - The Ride attraction at Universal Studios Hollywood, Seagram president and chief executive Edgar Bronfman Jr said in a statement.

Seagram posted net income in the two-month second quarter ending June 30 of US$62 million or US$0.17 a share, versus US$58 million or US$0.16 a share in the comparable period of 1995.

The shortened second-quarter and the five-month transition period reflected the transition to a fiscal year end of June 30 from January 31.

 

Net income for the five-month transition period was US$85 million or US$0.23 a share.

In the comparable five months of 1995, income before discontinued DuPont Co activities was US$117 million or US$0.32 a share.

Net income for the five months ended June 30, 1995, including the gain on the redemption of the DuPont shares was US$3.3 billion or US$8.99 per share.

Bronfman said spirits and wines results improved in the two-month second quarter and that the company looked forward to continued improvement in the division in the new fiscal year.

Spirits and wine earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by US$1 million in the second quarter after several quarters of decline.

The company said growth in Asia Pacific, particularly in Korea, and a recovery in several Latin American units, were partly offset by certain expenses in North America and flat results in Europe.

We are pleased to see the modest improvement in spirits and wine results in the second quarter following several difficult periods, and look forward to continued progress in our new fiscal year, Bronfman said.

Our key brands, including Martell Cognac, Chivas Regal Scotch Whisky, Crown Royal Canadian Whisky and Absolut Vodka, which is marketed under an agreement with V&S Vin & Spirit AB, performed well. Our fruit juice unit maintained its strong performance during the two- and five-month periods, driven by the strength of Pure Premium in the United States and growth of Tropicana Dole Beverages in all major global markets, Bronfman added.

Fruit juice and other EBITDA rose 14 per cent to US$24 million in the quarter due to the growth in Tropicana's base business globally and the addition of the Dole juice business.

Seagram said its second-quarter results included three months of MCA, which contributed US$88 million of EBITDA in the second quarter.

On a pro forma basis, EBITDA fell 19 percent compared with the second quarter last year.