Constellation Brands has said that it expects to improve net cash flow by US$50m in 2009, following moves to reduce exposure to foreign currencies.

Constellation said yesterday (2 December) that it has closed foreign currency hedges to take advantage of the stronger US$, a move set to increase cash flow for fiscal 2009 to between US$360-390m.

The wine giant said that pre-tax income for the full-year would not be affected by the move, but that diluted earnings per share would be $0.20 lower than previously predicted.

Analysts reacted largely positively to the news.

Mark Swartzberg, of analyst group Stifel Nicolaus, said in a note last night: "The savings are one time in nature, but we consider the underlying message - no change to the company's comparable 2H09 earnings outlook - a notable positive."

He added: "This has the effect of saying trends remain broadly on plan in an environment in which many companies are reducing their earnings expectations."