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Strong dollar, weak beer demand hurt Molson Coors' sales

Molson Coors Brewing Co reported net sales marginally below analysts' estimates, due to a strong dollar and low demand for its flagship Coors Light and Cobra beers in Europe.

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Molson Coors Brewing Co reported net sales marginally below analysts' estimates, due to a strong dollar and low demand for its flagship Coors Light and Cobra beers in Europe.

The company's net sales in Europe, which is its biggest market, fell 16.6 percent in the second quarter as it also lost contracts to brew Heineken beer and sell Mexican beer Modelo in the UK.

Molson Coors gets all its revenue from outside the United States and also receives 42 percent ofMillerCoors LLC's profit. MillerCoors is the company's U.S. joint venture with SABMiller Plc.

MillerCoors' sales fell marginally in the second quarter due to low demand for Coors Light and Miller Lite beers in the United States, despite extensive marketing campaigns.

Net income attributable to Molson Coors fell to $229 million, or $1.23 per share, in the second quarter ended June 30, from $290.9 million, or $1.56 per share, a year earlier.

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The company earned $1.41 per share, excluding items.

Net sales fell 15.4 percent to $1 billion.

Analysts on average had expected earnings of $1.32 per share on revenue of $1 billion, according to Thomson Reuters I/B/E/S.

Up to Wednesday's close, the company's shares had fallen 5.5 percent this year. 

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