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Anchor Glass Container Corporation has signed a new supply agreement with Anheuser-Busch Inc. to supply Anheuser -Busch's Jacksonville, Florida and Cartersville, Georgia breweries.

The agreement is expected to generate revenue in excess of US$1 billion over the life of the contract. It has new terms that go into effect on January 1, 2005 and continue through December 31, 2009, and replaces the existing Southeast Contract, which extended through 2005.

Under the terms of the new agreement Anchor Glass will continue to supply the majority of Anheuser-Busch's demand in the region through 2009. The contract requirements are expected to equal the capacity of the company's Jacksonville, Florida and Warner Robins, Georgia facilities, and to give Anchor Glass the flexibility to simplify the mix of product supplied after 2005.

Separately, the company said that due to high energy prices and market conditions, it expects to incur approximately $6.0 m in total incremental pre-tax energy expense related to all customers in the second quarter of 2004. Including this expense, second quarter 2004 net earnings are expected to be approximately US$5m. Second quarter 2004 revenue growth is expected to be approximately 14-15% versus the second quarter of 2003. For the full year 2004, incremental energy penalties are estimated to total approximately US$14m, assuming current energy prices do not change and current Anchor Glass hedges remain in effect.

Sectors: Beer & cider

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