<PAGE>
Exhibit 99.1
[Anheuser Busch logo]
News
For more information, contact:
Carlos Ramirez, (314) 577-9629
FOR IMMEDIATE RELEASE
---------------------
ANHEUSER-BUSCH COS. REPORTS FINANCIAL RESULTS FOR THE
THIRD QUARTER AND NINE MONTHS 2005
-----------------------------------------------------
ST. LOUIS, October 26, 2005 - Anheuser-Busch Cos. Inc. today
reported that consolidated net sales
increased 0.2 percent in the third
quarter of 2005, while diluted earnings per
share (excluding a one-time
litigation settlement) decreased 8.2
percent (1). For the nine months of
2005, net sales increased 0.9 percent and
earnings per share (excluding
one-time items in both 2005 and 2004)
declined 6.9 percent (1).
"We are disappointed in our sales and earnings results, but we
are
encouraged by improvement in our market
share performance at the consumer
level," said Patrick Stokes, president and
chief executive officer of the
company. "Both the company and the domestic
beer industry have experienced
volume declines and significant cost
pressures. Anheuser-Busch has
undertaken a number of initiatives in 2005
to enhance beer volume and market
share growth, and in the third quarter the
company's market share increased
in supermarkets, according to IRI data.
Although we are confident the
company will restore its sales and earnings
growth momentum in the future,
we now expect 2005 earnings per share
excluding one-time items to be 10 to
11 percent below 2004 results." (2)
As previously stated, the domestic beer company is planning a
price
increase for early 2006. Discount
reductions will likely comprise a larger
portion of revenue enhancement initiatives
in 2006 compared with recent
years. As always, revenue enhancement
initiatives will be tailored to
specific markets, brands and packages.
<PAGE>
Third Quarter Earnings
Anheuser-Busch
Add One
BEER SALES RESULTS
------------------
The company's reported beer volume for the third quarter and
nine
months of 2005 is summarized in the
following table:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Reported Beer Volume (millions of barrels) for Periods Ended
September 30
--------------------------------------------------------------------------------------------------------------
Third Quarter
Nine Months
----------------------------------
-----------------------------------
Versus 2004
Versus 2004
------------------------
------------------------
2005 Barrels
%
2005 Barrels
%
------
---------
----------- ------- --------- -----------
<S>
<C>
<C>
<C>
<C>
<C>
<C>
Domestic
27.2 Dn (0.4)
Dn
(1.4)% 78.0
Dn (2.1)
Dn
(2.6)%
International
6.2 Up
1.3 Up
26.0% 15.4
Up
6.4 Up
70.2%
------
---------
----------- ------- --------- -----------
Worldwide A-B Brands
33.4 Up
0.9
Up 2.8% 93.4
Up
4.3
Up 4.8%
Int'l Equity Partner Brands
8.6 Up
3.4 Up
66.0% 19.7
Up
5.0 Up
33.6%
------
---------
----------- ------- --------- -----------
Total Brands
42.0 Up
4.3 Up
11.5% 113.1
Up
9.3
Up
8.9%
======
=========
=========== ======= ========= ===========
---------------------------------------------------------------------------------------------------------------
</TABLE>
During the third quarter of 2005, domestic beer
sales-to-wholesalers
decreased 1.4 percent compared with the
third quarter 2004, while wholesaler
sales-to-retailers declined 1.0 percent.
Sales in late August and early
September were negatively impacted by
Hurricane Katrina, with sharp declines
in the hurricane affected areas. Sales
trends quickly recovered in
Mississippi, Alabama and Louisiana with the
exception of the New Orleans
market. Third quarter sales-to-retailers
comparisons with 2004 were also
adversely impacted by differences in timing
of price increases. Third
quarter 2004 sales-to-retailers include the
sales build up in advance of the
company's fourth quarter 2004 price
increase. No comparable build-up
occurred in the third quarter 2005 due to
the company's decision to defer
price increases throughout most of the
country until early 2006.
Sales-to-retailers for the period including
the third quarter plus the first
two weeks in October were down 0.4 percent,
which eliminates the distortion
from the normal inventory build and
depletion surrounding the price increase
in 2004. During the nine months of 2005,
domestic beer sales-to-wholesalers
declined 2.6 percent, and wholesaler
sales-to-retailers decreased 0.6
percent (on a comparable selling day
adjusted basis). Wholesaler inventories
were reduced significantly in the first
<PAGE>
Third Quarter Earnings
Anheuser-Busch
Add Two
nine months of 2005, from approximately two
and one half days higher than
the prior year at the end of 2004 to
approximately one day lower than the
prior year at the end of the third
quarter.
The company's estimated domestic market share (excluding
exports)
for the nine months of 2005 was 49 percent,
compared with 2004 market share
of 50 percent. Domestic market share is
based on estimated U.S. beer
industry shipment volume using information
provided by the Beer Institute
and the U.S. Department of Commerce.
Anheuser-Busch's market share
performance based on shipments was impacted
by the company's wholesaler
inventory reduction.
International volume, consisting of Anheuser-Busch brands
produced
overseas by company-owned breweries and
under license and contract brewing
agreements, plus exports from the company's
U.S. breweries to markets around
the world, increased 26 percent for the
third quarter and 70 percent for the
nine months of 2005. These increases were
primarily due to increased volume
in Canada, the United Kingdom and Mexico
for both the third quarter and nine
months of 2005, the impact of the Harbin
Brewery acquisition in the third
quarter 2004, and higher Budweiser sales
volume in China for the third
quarter 2005. International volume,
excluding the Harbin acquisition,
increased 7.5 percent in the third quarter
and was up 3.4 percent through
the nine months.
Worldwide Anheuser-Busch brands volume, comprised of domestic
volume and international volume, increased
2.8 percent and 4.8 percent,
respectively, for the third quarter and
nine months of 2005 to 33.4 million
and 93.4 million barrels vs. 2004.
Total brands volume, which combines worldwide Anheuser-Busch
brand
volume with international equity partner
volume (representing the company's
share of its foreign equity partners'
volume on a one-month lag basis) was
42 million barrels in the third quarter
2005, up 4.3 million barrels, or
11.5 percent over third quarter 2004. Total
brands volume was up 8.9
percent, to 113.1 million barrels for the
nine months of 2005.
<PAGE>
Third Quarter Earnings
Anheuser-Busch
Add Three
International equity partner brands volume grew 66 percent and
34
percent, respectively, for the third
quarter and nine months of 2005 due to
Modelo volume growth and the addition of
Tsingtao equity volume beginning in
May 2005, partially offset by the loss of
volume from the sale of the
company's equity investment in Compania
Cervecerias Unidas S.A. (CCU) in the
fourth quarter 2004.
THIRD QUARTER 2005 FINANCIAL RESULTS
------------------------------------
Key operating results for the third quarter 2005 vs. 2004 are
summarized below:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
($ in millions, except per share)
--------------------------------------------------------------
Third Quarter
2005 vs. 2004
--------------------------
----------------------------
2005
2004
$
%
--------
--------
----------- ------------
<S>
<C>
<C>
<C>
<C>
Gross Sales
$4,689
$4,680
Up $9
Up 0.2%
Net Sales
$4,089
$4,080
Up $9
Up 0.2%
Income Before Income Taxes
$643
$948
Dn $(305) Dn
(32.2)%
Equity Income
$147
$104
Up $43
Up 41.6%
Net Income
$518
$684
Dn $(166) Dn
(24.3)%
Diluted Earnings per Share
$.66
$.85
Dn $(.19) Dn
(22.4)%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
A discussion of
financial highlights for the third quarter 2005
follows:
o Net sales increased
0.2 percent vs. the third quarter 2004, driven
primarily by an
11 percent increase in international beer segment net
sales due to higher sales in
Canada, the United Kingdom and China and a
13 percent
revenue increase from entertainment operations.
<PAGE>
Third Quarter Earnings
Anheuser-Busch
Add Four
Domestic beer
segment sales declined 2.7 percent on lower beer sales
volume and lower
revenue per barrel. Domestic revenue per barrel (3)
decreased 1.2
percent in the third quarter 2005 vs. the third quarter
2004.
Domestic beer
pretax income decreased 21 percent due to lower beer
sales volume,
lower revenue per barrel and higher costs, primarily
resulting from
commodity cost pressures from aluminum, glass and
energy, plus
higher costs for new packaging.
o During the third
quarter 2005, the company and its outside insurance
companies
settled claims associated with lawsuits involving the company
and a former
independent beer wholesaler. As a result of the settlement
the company paid
$120 million and incurred a pretax charge of $105
million, or $.12
per share, which is reported as a separate line item
on a pretax
basis in the company's income statement. For business
segment
reporting purposes the settlement is classified as a corporate
item.
Income before
income taxes, excluding the litigation settlement,
decreased 21
percent (1) vs. the third quarter 2004, reflecting lower
profits in
domestic beer, international beer and packaging operations,
partially offset
by improved results from the company's entertainment
business.
International
beer segment net income increased 27 percent, led by
continued strong
performance by Grupo Modelo. Equity income increased
$43 million in
the third quarter 2005 vs. 2004, reflecting the benefit
of Grupo Modelo
volume growth, a lower Mexican income tax rate and the
inclusion of
Tsingtao equity earnings since May 2005. International
beer pretax
income decreased $14 million primarily due to lower profits
in China,
including Harbin.
<PAGE>
Third Quarter Earnings
Anheuser-Busch
Add Five
Packaging
segment pretax profits were down $9 million primarily due to
higher energy
and material costs for glass and can manufacturing
operations.
Entertainment
segment pretax results improved $31 million due to
increased
attendance and admissions pricing and higher in-park
spending,
partially offset by increased park operating expenses.
Results in 2004
were adversely impacted by four hurricanes in Florida.
o Anheuser-Busch
Companies net income and diluted earnings per share
decreased 10.8
percent and 8.2 percent, respectively, for the third
quarter(1),
excluding the impact of the litigation settlement. Reported
net income
decreased 24 percent compared with third quarter 2004, while
reported diluted
earnings per share declined 22 percent, to $.66.
Excluding the
impact of the litigation settlement, the effective tax
rate was 38.1
percent(1). The reported effective income tax rate
increased 350
basis points, to 42.3 percent in the third quarter 2005
primarily due to
a limited tax benefit from the litigation settlement,
partially offset
by lower foreign taxes and ongoing benefits received
under the
American Jobs Creation Act.
<PAGE>
Third Quarter Earnings
Anheuser-Busch
Add Six
NINE MONTHS OF 2005 FINANCIAL RESULTS
-------------------------------------
Key operating results for the nine months of 2005 vs. 2004 are
summarized below:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
($ in millions, except per share)
---------------------------------------------------------------
Nine Months
2005 vs. 2004
---------------------------
----------------------------
2005
2004
$
%
---------
---------
----------- ------------
<S>
<C>
<C>
<C>
<C>
Gross Sales
$13,372
$13,280
Up $92
Up 0.7%
Net Sales
$11,670
$11,567
Up $103
Up 0.9%
Income Before Income Taxes
$2,024
$2,629
Dn $(605) Dn
(23.0)%
Equity Income
$390
$299
Up $91
Up 30.5%
Net Income
$1,638
$1,908
Dn $(270) Dn
(14.1)%
Diluted Earnings per Share
$2.09
$2.35
Dn $(.26) Dn
(11.1)%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
A discussion of
financial highlights for the nine months of 2005
follows:
o Net sales increased
0.9 percent vs. the nine months of 2004, due
primarily to a
21 percent increase in international beer net sales, an
8 percent
increase in commodity-based packaging operations sales and 9
percent higher
entertainment segment sal
