<PAGE>
Exhibit 99
[ANHEUSER BUSCH logo]
News
For more information, contact:
Carlos Ramirez, (314) 577-9629
FOR IMMEDIATE RELEASE
---------------------
ANHEUSER-BUSCH COS. REPORTS IMPROVED SALES AND
EARNINGS FOR THE FOURTH QUARTER AND FULL YEAR 2004
--------------------------------------------------
REPORTED EARNINGS PER
SHARE INCREASES 11.7 PERCENT FOR THE FULL YEAR
EARNINGS PER SHARE EXCLUDING ONE-TIME ITEMS INCREASES 10.1
PERCENT FOR THE FULL YEAR
ST. LOUIS, February 2, 2005 - Anheuser-Busch Cos., Inc.
achieved
increased sales and earnings for the fourth
quarter and full year 2004, it
was announced today by Patrick Stokes,
president and chief executive officer
of the company. Consolidated net sales
increased 4.7 percent in the fourth
quarter, while reported earnings per share
increased 16.7 percent. Net sales
and reported earnings per share increased
5.6 percent and 11.7 percent,
respectively, for the full year. All major
business segments contributed to
the sales and profit growth for the
year.
Earnings per share for 2004 benefited from certain one-time
items
--- a $.015 per share gain in the first
quarter from the sale of commodity
hedges; a $.018 per share gain in the
fourth-quarter on sale of the
company's equity investment in Compania
Cervecerias Unidas S.A. (CCU); and a
fourth-quarter deferred income tax benefit
of $.012 per share related to the
company's Modelo investment due to a
reduction in Mexican corporate income
tax rates. None of these one-time items
impacts sales, gross profit or
operating income. Excluding these items,
earnings per share for the full
year and fourth quarter increased 10.1
percent(1.) and 8.3 percent(1.) vs.
2003, respectively.
As a result of the continuing favorable pricing environment,
domestic beer revenue per barrel(2.)
increased 2.3 percent in the fourth
quarter and grew 2.5 percent for the full
year 2004 vs. the same periods in
2003.
-more-
Fourth Quarter Earnings
Anheuser-Busch
Add One
Consistent with the company's practice of implementing moderate
annual price increases in two phases,
Anheuser-Busch completed the first
stage of its pricing plan for 2005 in
October 2004. The success of these
pricing actions is reflected in the
company's fourth quarter revenue per
barrel results. As planned, the second
phase of the 2005 pricing initiatives
is being implemented this week. As in the
past, the revenue enhancement
initiatives have been tailored to specific
markets, brands and packages.
Gross profit margin declined 110 basis points in the fourth
quarter
2004, to 34.2 percent, while operating
margin decreased 10 basis points to
13.9 percent. For the full year 2004, gross
margin was down 40 basis points,
to 39.9 percent and operating margin was
down 10 basis points vs. 2003, to
22.5 percent. The declines in margins are
primarily due to the impact of
higher sales and higher costs from the
company's commodity-based can
manufacturing and aluminum recycling
operations. Domestic beer gross profit
margin decreased 30 basis points for the
fourth quarter and increased 20
basis points in the full year.
BEER SALES RESULTS
------------------
The company's reported beer volume is summarized in the
following
table:
<TABLE>
----------------------------------------------------------------------------------------------------------------------
Reported Beer Volume (millions of barrels)
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
Fourth Quarter
Full Year Ended December 31
----------------------------------------
--------------------------------------
vs. 2003
vs. 2003
---------------------------
-------------------------
2004
Barrels %
2004
Barrels
%
-----------
------------
-------------
-----------
-----------
------------
<S>
<C>
<C>
<C>
<C>
<C>
<C>
Domestic
22.9
Dn 0.3
Dn 1.5%
103.0 Up
0.4 Up
0.4%
International
4.7
Up 2.5 Up 120.5%
13.8 Up
5.4 Up
64.8%
-----------
------------
-------------
-----------
-----------
------------
Worldwide Brands
27.6
Up 2.2
Up 8.8%
116.8 Up
5.8 Up
5.3%
Int'l Equity Partner Brands
4.6 Dn
0.01
Dn 0.2%
19.3 Up
0.5 Up
2.7%
-----------
------------
-------------
-----------
-----------
------------
Total Brands
32.2
Up 2.2
Up 7.4%
136.1 Up
6.3 Up
4.9%
===========
============
=============
===========
===========
============
----------------------------------------------------------------------------------------------------------------------
</TABLE>
The increase in domestic beer sales-to-wholesalers for the year
is
due primarily to continued growth of the
Michelob ULTRA and Bud Light
brands.
Fourth Quarter Earnings
Anheuser-Busch
Add Two
Wholesaler sales-to-retailers were down 3.2 percent in the
fourth
quarter and declined 0.3 percent for the
full year vs. 2003 levels. Both
sales-to-retailers and sales-to-wholesalers
were adversely impacted during
the year by abnormally wet weather in many
key markets, especially during
the key summer selling season. This was
coupled with the general slowdown in
consumer spending during the year,
particularly among lower income
consumers.
The company's domestic market share (excluding exports) for the
full year 2004 was 49.6 percent, compared
to 2003 market share of 49.7
percent. Domestic market share is based on
estimated U.S. beer industry
sales using information provided by the
Beer Institute and the U.S.
Department of Commerce.
International beer 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
120.5 percent for the fourth quarter
and 64.8 percent for full year 2004.
International beer volume includes 2.5
million barrels in the fourth quarter and
5.2 million barrels for the full
year related to Harbin, which the company
acquired in the third quarter.
Excluding Harbin, international beer volume
grew 2.7 percent in the fourth
quarter and 3.2 percent for the full year.
These increases are primarily due
to higher sales volume in China, Canada and
the United Kingdom.
Worldwide Anheuser-Busch beer sales volume for the fourth
quarter
and full year 2004 rose 8.8 percent and 5.3
percent, to 27.6 million and
116.8 million barrels, respectively, vs.
2003. Worldwide Anheuser-Busch beer
brand volume is comprised of domestic
volume and international volume.
Fourth Quarter Earnings
Anheuser-Busch
Add Three
International equity partner brands volume, representing the
company's share of its foreign equity
partners' volume reported on a
one-month lag, decreased 0.2 percent for
the fourth quarter due to the sale
of CCU and increased 2.7 percent for the
full year 2004 vs. 2003. Total
brands volume increased 7.4 percent and 4.9
percent for the fourth quarter
and full year, respectively, vs. comparable
2003 periods.
"Anheuser-Busch has achieved another year of solid growth in
earnings per share and we expect earnings
per share growth in the 6 percent
to 9 percent (3.) range for 2005 compared
with 2004, excluding the one-time
items in 2004 and including the impact of
expensing stock options in 2005
and 2004," said Stokes. Anheuser-Busch will
begin expensing stock options
when it adopts FAS 123R, "Share-Based
Payment," expected in the first
quarter 2005, and will retrospectively
apply the standard to all prior
periods. "We continue to target
double-digit earnings per share growth over
the longer-term," said Stokes.
FOURTH QUARTER 2004 FINANCIAL RESULTS
-------------------------------------
Key operating results for the fourth quarter 2004 vs. 2003 are
summarized below:
<TABLE>
----------------------------------------------------------------------------------------------------------------------
<CAPTION>
($ in millions, except per share)
----------------------------------------------------------------------
Fourth Quarter
2004 vs. 2003
----------------------------------
----------------------------------
2004
2003
$
%
----------------
----------------
----------------
----------------
<S>
<C>
<C>
<C>
<C>
Gross Sales
$3,880
$3,720
Up $160
Up 4.3%
Net Sales
$3,367
$3,215
Up $152
Up 4.7%
Income Before Income Taxes
$370
$355
Up $15
Up 4.4%
Equity Income
$105
$77
Up $28
Up 36.0%
Net Income
$332
$294
Up $38
Up 13.0%
Diluted Earnings Per Share
$.42
$.36
Up $.06
Up 16.7%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
Fourth Quarter Earnings
Anheuser-Busch
Add Four
A discussion of
financial highlights for the fourth quarter 2004
follows:
o Net sales increased
4.7 percent compared with the fourth quarter 2003,
due to increased
domestic beer segment net sales (higher revenue per
barrel partially
offset by reduced volume), higher international beer
sales and
increased sales from the company's commodity-based can
manufacturing
and aluminum recycling operations.
o Income before income
taxes for the fourth quarter increased 4.4 percent
vs. 2003,
primarily reflecting improved results for international beer.
Pretax income
for the fourth quarter 2004 includes the $13.4 million
gain on the sale
of CCU, which is reported in the international beer
segment.
Pretax income
for the domestic beer segment was down 1.9 percent for
the quarter,
primarily reflecting lower volume and higher costs,
partially offset
by higher revenue per barrel due to the favorable
pricing
environment.
International
beer segment pretax income improved $25 million or 169
percent in the
fourth quarter vs. 2003, primarily due to profit growth
in China, Canada
and the United Kingdom and a $13.4 million gain on the
sale of the
company's CCU investment. Excluding the CCU gain, pretax
income increased
80 percent(4.).
Packaging
segment pretax profits were up 7 percent in the fourth
quarter 2004
compared with prior year, due to improved results from the
label
manufacturing and aluminum recycling operations.
Fourth Quarter Earnings
Anheuser-Busch
Add Five
Entertainment
segment pretax results declined $6 million compared with
the fourth
quarter 2003, primarily due to higher operating costs.
o Equity income was up
36 percent in the fourth quarter 2004 vs. 2003,
reflecting the
benefit of price and volume growth from Grupo Modelo,
plus the
one-time $18 million deferred income tax benefit due to the
reduction in
Mexican tax rates. Excluding the deferred income tax
benefit, equity
income increased 13 percent (5.). The tax rate benefit is
partially offset
by $8 million of higher U.S. deferred income taxes in
the consolidated
tax provision.
o Net income increased
13 percent compared with fourth quarter 2003.
Diluted earnings
per share were $.42, an increase of 16.7 percent
compared with
2003. Earnings per share excluding the gain on sale of
CCU and the
Mexican tax rate benefit increased 8.3 percent. Earnings
per share
continue to benefit from the company's ongoing share
repurchase
program.
FULL YEAR 2004 FINANCIAL RESULTS
--------------------------------
Key operating results for the full year 2004 vs. 2003 are
summarized below:
<TABLE>
----------------------------------------------------------------------------------------------------------------------
<CAPTION>
($ in millions, except per share)
----------------------------------------------------------------------
Full Year
2004 vs. 2003
----------------------------------
----------------------------------
2004
2003
$
%
----------------
----------------
----------------
----------------
<S>
<C>
<C>
<C>
<C>
Gross Sales
$17,160
$16,320
Up $840
Up 5.1%
Net Sales
$14,934
$14,147
Up $787
Up 5.6%
Income Before Income Taxes
$2,999
$2,824
Up $175
Up 6.2%
Equity Income
$404
$345
Up $59
Up 17.2%
Net Income
$2,240
$2,076
Up $164
Up 7.9%
Diluted Earnings Per Share
$2.77
$2.48
Up $.29
Up 11.7%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
Fourth Quarter Earnings
Anheuser-Busch
Add Six
A discussion of
financial highlights for the full year 2004 follows:
o Net sales increased
5.6 percent compared with the full year 2003,
driven
primaril
