US wine sales mark solid start for Constellation

Diluted earnings per share were $0.20 for the quarter ended May 31 2008 compared to $0.13 for the same period in 2007.

Rob Sands, Constellation Brands, CEO, said the results were "solid" leaving the firm on track to achieve its 2009 objectives.

He added: "Efforts throughout fiscal 2008 set the stage for fiscal 2009, and milestones such as the recently announced sale of certain US wine assets, underscore our focus on reducing borrowings, streamlining our portfolio and improving operational efficiency while enhancing our financial performance."

The company announced the sale of its Almaden and Inglenook wine brands in January this year for $134 million (68.5m).

With the streamlined portfolio, wine sales looked particularly strong over the period with operating income for this segment increasing $58m (29.2m) compared to the first quarter in 2007.

Sands commented: "Our North America wine business turned in a strong performance. In the US, Robert Mondavi wines, Kim Crawford, Simi, Estancia and Franciscan all registered double-digit market growth for the first quarter.

"Additionally, Clos du Bois and Wild Horse were fully assimilated into our portfolio and we anticipate future growth for both brands."