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Molson Coors Beats 3Q Profit Forecasts Despite Lagging Sales

NEW YORK (AP) - Molson Coors Brewing Co. on Thursday reported a profit for the third-quarter as lower costs helped offset a stronger U.S. dollar that weighed down sales.

The company reported profit of $16.6 million, or 9 cents per share, after reporting a loss in the same period a year earlier. Earnings, adjusted for one-time gains and costs, came to $1.40 per share.

The results topped Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.28 per share.

The beer maker reported a 13 percent drop in net sales to $1.02 billion, mainly from the impact of a stronger U.S. dollar. The termination of several brand agreements also cut into revenue.

Meanwhile, the Denver-based company said David Heede, currently chief financial officer of the company's Europe unit, will become interim chief financial officer of Molson Coors. He will remain in that position until the company finds a replacement for outgoing chief financial officer Gavin Hattersley, who is also CEO of MillerCoors, which is the joint venture between Molson Coors and SABMiller PLC.

AB InBev, the world's largest beer maker, is in the process of buying SABMiller in a deal worth more than $106 million, which could impact Molson Coors stake in Miller Coors.

Its shares fell $1.01, or 1.2 percent, to $86.41 in morning trading Thursday.

Molson Coors shares have increased 17 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed 2 percent. The stock has increased 18 percent in the last 12 months.

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TAP at http://www.zacks.com/ap/TAP

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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