Boston Beer slashes 2008 outlook on recall costs

BOSTON - Boston Beer Co., the brewer of Samuel Adams beers, on Tuesday slashed its full-year profit forecast, citing the cost of a product recall and expenses relating to the opening of a new brewery.

The company now expects to earn between 60 cents and 80 cents per share for the year, down sharply from $1.70 to $2 per share it previously predicted.

The reduction is due to higher-than-expected costs for a recall announced in April, plus expenses related to the opening of its Pennsylvania Brewery outside Allentown, Pa. The company said it also expects sales volume to come in below prior expectations.

Adjusting for the costs of the recall, the company said it expects to earn between $1.60 and $1.80 per share.

Analysts polled by Thomson Reuters, on average, were expecting a profit of $1.88 per share, with estimates ranging from $1.81 per share to $1.97 per share. Analyst estimates typically exclude one-time charges and gains.

Boston Beer shares closed the regular session down 42 cents at $36.56, then fell $2.55, or 7 percent, in aftermarket electronic trading.

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