UST, owner of Stimson Lane Vineyards & Estates and Skoal smokeless tobacco, said second-quarter net earnings fell to US$128.9m, from US$136.8m a year earlier, in part because of higher selling, advertising and administrative costs. Net sales rose to US$438.9m, from US$432.3m.
Diluted earnings per share slipped to US$0.77, from US$0.80 a year earlier.
Wine sales fell 11.8% to US$42.8m. Case sales dipped 6.9% as an oversupply of grapes, cheaper imports and a reduction in wholesale inventories pressured prices.
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“Although competitive pressures had a negative result on this quarters performance, our wine business continues to outperform many in the domestic wine industry,” Theodor Baseler, president of UST’s
International Wine & Spirits unit, said in a statement.
UST maintained its target for 2003 diluted earnings per share at US$2.99.
