Boston Beer predicts earnings growth

Boston Beer Co., which sells malt beverages and hard cider under brands including Samuel Adams and Twisted Tea, is forecasting 2007 earnings growth, despite an expected increase in production costs.

Boston Beer said it expects fiscal 2007 earnings of $1.42 to $1.55 per share.

The company's forecast surpassed the expectations of analysts surveyed by Thomson Financial, who estimated profit of $1.40 per share.

The company said production costs could rise between 7 and 10 percent over 2006 costs, due to poor worldwide barley crops and potential glass cost increases.

The company said the higher costs will be partly offset by a planned 3 percent price increase, but that gross margin could fall 2 percentage points below 2006 figures.

Boston Beer also said fourth-quarter profit grew 9 percent.
(AP)