• Achieves comparable basis diluted EPS of $0.52 and reported basis diluted EPS of $0.43

  • Solid underlying organic performance driven by execution of U.S. go-to-market strategy

  • Strong free cash flow results drive upward revision to annual guidance; new target range set at record $375-$425 million

  • Utilizes free cash flow to further reduce debt

  • Reaffirms fiscal 2011 comparable basis diluted EPS guidance; updates reported basis diluted EPS guidance

VICTOR, N.Y., Oct. 6, 2010 - Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), the world's leading wine company, reported today its second quarter fiscal 2011 results.

Second Quarter 2011 Financial Highlights*
(in millions, except per share data)
Comparable % Change Reported % Change
Consolidated net sales $863 -2% $863 -2%
Operating income $151 -11% $133 -5%
Operating margin 17.4% -190 bps 15.4% -60 bps
Equity in earnings of equity method investees** $67 -9% $66 -9%
Earnings before interest and taxes (EBIT) $217 -10% NA NA
Net income $109 -9% $91 -8%
Diluted earnings per share $0.52 -4% $0.43 -4%

"Our second quarter results demonstrate that we are gaining momentum from the successful execution of our U.S. distributor strategy," said Rob Sands, president and chief executive officer, Constellation Brands. "During the quarter, we experienced improving U.S. wine depletion trends and retail execution despite an uncertain consumer and competitive environment. Our brand investments and promotional activities are helping to fuel growth in the marketplace for our core brands including Robert Mondavi, Kim Crawford, Clos du Bois and Blackstone, just to name a few."

Second Quarter 2011 Net Sales Highlights*
(in millions)
Reported Organic


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