Shares’ Fall Surprises Brewer Anheuser-Busch

Anheuser-Busch Cos. (ticker symbol: BUD) said it was surprised by a drop in its stock price to a 14-month low Monday, and vowed to use the weakness to repurchase an unspecified number of its shares.

“Anheuser-Busch’s sales and earnings outlook is very positive, and we are enjoying the most favorable domestic beer industry fundamentals in over a decade,” the St. Louis-based brewer told Reuters.

Stock in the world’s leading brewer, whose brands include Budweiser and Michelob, slumped $2.94 to close at $62.13 on the New York Stock Exchange. The stock is down 12% this year and 26% from its peak of $84 in September.

The company and many analysts have said industry fundamentals are ideal for Anheuser-Busch. A strong economy and an increase in the number of people in the key 21-to-27 age group have boosted sales in recent quarters. The brewer has also successfully raised prices in most markets, which it had trouble doing in prior years.

“I don’t know how much of this [drop] is a macro thing. Consumer stocks have been somewhat sluggish lately,” said Douglas Lane, beverage industry analyst with Merrill Lynch. He noted that trade industry data showed strong beer sales so far in the first quarter.

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No Froth

Anheuser-Busch stock has slumped 12% this year to a 52-week low as investors shun most consumer products stocks. Monthly closes and latest on the NYSE:

Monday: $62.13, down $2.94

Source: Bloomberg News