<PAGE>
Exhibit 99.1
[ANHEUSER BUSCH logo]
NEWS
For more information, contact:
Carlos Ramirez, (314) 577-9629
FOR IMMEDIATE RELEASE
---------------------
ANHEUSER-BUSCH COS. REPORTS
SECOND QUARTER AND FIRST SIX MONTHS 2005 FINANCIAL RESULTS
----------------------------------------------------------
ST. LOUIS, July 27, 2005 - Anheuser-Busch Cos. Inc. today
reported
that consolidated net sales increased 0.2
percent in the second quarter of
2005, while diluted earnings per share
(excluding two one-time income tax
gains) decreased 8.4 percent (1)/. For the
first six months, net sales
increased 1.3 percent and earnings per
share (excluding one-time gains in
both 2005 and 2004) declined 6.7 percent
(1)/.
"Anheuser-Busch had a challenging first six months in its
domestic
beer business," said Patrick Stokes,
president and chief executive officer
of the company. "Both the company and the
domestic beer industry experienced
volume declines and higher cost pressures.
Anheuser-Busch has implemented a
number of initiatives to enhance beer
volume and market share growth,
including introduction of new products and
packaging, increased investments
in domestic marketing, stepped-up
on-premise sales activities and tactical
price promotions and we are encouraged by
our sales improvement in June.
During the second quarter, wholesaler
inventories were reduced significantly
and are now below last year. Although we
are confident the company will
restore its sales momentum and return to
solid earnings growth in the
future, we are currently forecasting 2005
earnings per share to be below
2004 results (2)/, excluding the one-time
gains."
- more -
<PAGE>
Second Quarter Earnings
Anheuser-Busch
Add One
BEER SALES RESULTS
------------------
The company's reported beer volume for the second quarter and
first
six months of 2005 is summarized in the
following table:
<TABLE>
--------------------------------------------------------------------------------------------------------------------
Reported Beer Volume (millions of barrels) for Periods Ended June
30
------------------------------------------------------------------------------------------------------------------
<CAPTION>
Second Quarter
First Six Months
---------------------------------------
------------------------------------
Versus 2004
Versus 2004
--------------------------
-------------------------
2005
Barrels
%
2005
Barrels
%
------
---------
-----------
------ ---------
-----------
<S>
<C>
<C>
<C>
<C>
<C>
<C>
Domestic
26.3
Dn 1.0
Dn 3.7% 50.8
Dn 1.7
Dn 3.2%
International
4.9
Up 2.6
Up 115.6% 9.3
Up
5.1
Up 122.5%
------
---------
-----------
------ ---------
-----------
Worldwide A-B Brands
31.2
Up 1.6
Up 5.4% 60.1
Up 3.4
Up 6.0%
Int'l Equity Partner Brands
6.8
Up 1.6
Up 31.1% 11.1
Up 1.5
Up 16.1%
------
---------
-----------
------ ---------
-----------
Total Brands
38.0
Up 3.2
Up 9.2% 71.2
Up 4.9
Up 7.5%
======
=========
===========
====== =========
===========
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</TABLE>
During the second quarter of 2005, domestic beer
sales-to-wholesalers decreased 3.7 percent
compared with the second quarter
2004, and wholesaler sales-to-retailers
declined 0.2 percent. Wholesaler
inventories were reduced significantly
during the quarter, from
approximately 1.5 days higher than last
year at the beginning of the quarter
to over one day lower than 2004 at the end
of the quarter. During the first
six months of 2005, domestic beer
sales-to-wholesalers declined 3.2 percent,
while wholesaler sales-to-retailers
declined 0.4 percent (on a comparable
selling day adjusted basis). Wholesaler
sales-to-retailer trends improved
significantly in June. Bud family
sales-to-retailers increased in the second
quarter 2005 and first six months driven by
the growth of Bud Light and the
national introduction in late February of
Budweiser Select.
The company's estimated domestic market share (excluding
exports)
for the first six months of 2005 was 48.8
percent, compared to 2004 market
share of 49.8 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
primarily due to the company's wholesaler
inventory reduction. At the
<PAGE>
Second Quarter Earnings
Anheuser-Busch
Add Two
consumer level, Anheuser-Busch gained share
in supermarkets and convenience
stores combined for the first six months of
2005 vs. 2004, according to IRI
data.
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 116 percent for the
second quarter and 123 percent for
the first six months of 2005. These
increases for the second quarter and
year-to-date 2005 include 2.5 million and
5.1 million barrels, respectively,
from the Harbin Brewery, which the company
acquired and began consolidating
in the third quarter 2004. Excluding Harbin
shipments, international beer
volume increased 3.5 percent and 1.2
percent, respectively, primarily due to
increased volume in Canada, partially
offset by lower sales volume in
Ireland and the United Kingdom for both the
second quarter and first six
months of 2005 and lower Budweiser sales
volume in China year-to-date.
Budweiser volume in China was up 2 percent
for the second quarter 2005.
Worldwide Anheuser-Busch brands volume, comprised of domestic
volume and international volume, increased
5.4 percent and 6.0 percent,
respectively, for the second quarter and
first six months of 2005 to 31.2
million and 60.1 million barrels versus
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
38.0 million barrels in the second quarter
2005, up 3.2 million barrels, or
9.2 percent over second quarter 2004. Total
brands volume was up 7.5
percent, to 71.2 million barrels for the
first six months of 2005.
<PAGE>
Second Quarter Earnings
Anheuser-Busch
Add Three
International equity partner brands volume grew 31.1 percent
and
16.1 percent, respectively, for the second
quarter and first six 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.
Consistent with the company's stated priorities to restore
volume
and market share momentum in 2005, the
company plans to defer additional
price increases throughout most of the
nation until early 2006. A single
phase price increase is being planned for
early 2006. As always, future
revenue enhancement initiatives will be
tailored to specific markets, brands
and packages.
The company also announced that the Board of Directors has
elected
to increase the common dividend rate 10.2
percent, to 27 cents from 24 1/2
cents per share. This increase reflects
Anheuser-Busch's substantial cash
flow and management's confidence regarding
the company's long-term
prospects.
SECOND QUARTER 2005 FINANCIAL RESULTS
-------------------------------------
Key operating results for the second quarter 2005 vs. 2004 are
summarized below:
<TABLE>
----------------------------------------------------------------------------------------------------------------------
<CAPTION>
($ in millions, except per share)
--------------------------------------------------------------
Second Quarter
2005 vs. 2004
--------------------
---------------------------
2005
2004
$
%
-------- -------
---------
----------
<S>
<C>
<C>
<C>
<C>
Gross Sales
$4,597
$4,597
--
--
Net Sales
$4,018
$4,010
Up $8
Up 0.2%
Income Before Income Taxes
$736
$927
Dn $191
Dn 20.6%
Equity Income
$137
$106
Up $31
Up 29.0%
Net Income
$607
$674
Dn $67
Dn 9.9%
Diluted Earnings per Share
$.78
$.83
Dn $.05
Dn 6.0%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
A discussion of
financial highlights for the second quarter 2005
follows:
<PAGE>
Second Quarter Earnings
Anheuser-Busch
Add Four
o Net sales increased
0.2 percent vs. the second quarter 2004, driven
primarily by a
26 percent increase in international beer segment net
sales due to the
Harbin acquisition, a 9 percent increase in sales from
the
commodity-based packaging segment and a 3 percent revenue
increase
from
entertainment operations.
Domestic beer
segment sales declined 3.6 percent on lower beer sales
volume partially
offset by an increase in revenue per barrel. Domestic
revenue per
barrel (3)/ grew 0.2 percent in the second quarter 2005 vs.
the second
quarter 2004.
o Income before income
taxes decreased 21 percent vs. the second quarter
2004, reflecting
lower profits in domestic beer, higher interest
expense and
lower profits for the international beer, entertainment and
packaging
segments.
International
beer pretax income decreased $5 million primarily due to
lower profits in
the United Kingdom and the adoption of equity
accounting for
the company's investment in Tsingtao. Earnings in the
United Kingdom
were down due to lower sales volume. During the second
quarter 2005,
concurrent with its increased equity stake in Tsingtao
from 9.9 percent
to 27 percent, the company adopted equity accounting.
Upon adoption of
equity accounting the company began reporting its
share of
Tsingtao earnings in the equity income line, below pretax
earnings. Prior
to the increased stake, the company accounted for its
investment on
the cost basis and reported its Tsingtao dividend
(declared in the
second quarter) within pretax income. This change
resulted in a
decrease in International beer pretax income vs. second
quarter 2004,
offset by higher equity income.
<PAGE>
Second Quarter Earnings
Anheuser-Busch
Add Five
Packaging
segment pretax profits were down $8 million primarily due to
higher materials
costs for glass and can manufacturing operations.
Entertainment
segment pretax results declined $4 million due to the
impact of the
Easter holiday falling in the first quarter of 2005
versus the
second quarter in 2004, plus higher park operating expenses
partially offset
by increased admissions pricing and in-park spending.
o Equity income
increased $31 million in the second quarter 2005 vs.
2004, reflecting
the benefit of Grupo Modelo volume growth, a lower
Mexican income
tax rate and the inclusion of Tsingtao earnings since
May.
o Net income decreased
9.9 percent compared to second quarter 2004, while
reported diluted
earnings per share declined 6.0 percent, to $.78. The
effective income
tax rate declined 260 basis points, to 36.2 percent in
the second
quarter 2005 primarily due to a $6.8 million favorable
settlement with
respect to Chilean taxes associated with the fourth
quarter 2004
sale of the company's equity stake in CCU and a $7.2
million
reduction of deferred income taxes resulting from state income
tax reform
legislation enacted in Ohio, plus ongoing benefits received
under the
American Jobs Creation Act. Excluding the one-time CCU tax
settlement and
the Ohio deferred income tax benefit, the effective tax
rate would have
been 38.1 percent and net income and diluted earnings
per share would
have decreased 11.9 percent and 8.4 percent,
respectively,
for the second quarter (1)/.
<PAGE>
Second Quarter Earnings
Anheuser-Busch
Add Six
FIRST SIX MONTHS OF 2005 FINANCIAL
RESULTS
------------------------------------------
Key operating results for the first six months of 2005 vs. 2004
are
summarized below:
<TABLE>
----------------------------------------------------------------------------------------------------------------------
<CAPTION>
($ in millions, except per share)
--------------------------------------------------------------
First Six Months
2005 vs. 2004
---------------------
---------------------------
2005
2004
$
%
-------- --------
---------
----------
<S>
<C>
<C>
<C>
<C>
Gross Sales
$8,682
$8,600
Up $82
Up 1.0%
Net Sales
$7,582
$7,487
Up $95
Up 1.3%
Income Before Income Taxes
$1,380
$1,681
Dn $301
Dn 17.9%
Equity Income
$243
$195
Up $48
Up 24.5%
Net Income
$1,120
$1,223
Dn $103
Dn 8.5%
Diluted Earnings per Share
$1.43
$1.50
Dn $.07
Dn 4.7%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
A discussion of
financial highlights for the first six months of 2005
follows:
o Net sales increased
1.3 percent vs. the first six months of 2004,
driven primarily
by a 28 percent increase in international beer segment
net sales due to
the Harbin acquisition, an 11.5 percent increase in
commodity-based
sales from packaging operations and 6 percent higher
entertainment
segment sales.
Domestic beer
segment sales decreased 2.5 percent pr
