ABN AMRO has cut its 2004 earnings per share (EPS) forecasts across the European beverages industry. The cuts, announced today, have been introduced due to the weakness of the US dollar.

In a research note reported by Reuters today, the bank said: "The dollar has now fallen 36% against the euro in the past two years. The sharp slide in the past two months has occurred since the last time many of the companies in the sector reported results."

Heineken has seen its EPS cut more than other brewers in the sector, as its beer is made in The Netherlands, meaning its euro costs on its US exports are higher but the value of its dollar sales are lower. Its EPS has been cut 7.5%.

Interbrew's EPS forecast has been cut 4.3%, while Diageo drops 3.4%. Allied Domecq is also hit, with its EPS dropping 1.7%.

AMRO cut its EPS estimate for Remy Cointreau by 18% after the company posted its results in December.