January 5, 2018 / 5:24 PM / 7 months ago

BRIEF-Constellation Brands Says Expects New Tax Legislation To Result In Reduction In Existing Net Deferred Tax Liabilities By $300 Mln To $400 Mln

Jan 5 (Reuters) - Constellation Brands Inc:

* ON CONF CALL - “IN PROCESS OF EVALUATING SPECIFIC BENEFITS OF TAX REFORM”

* CONSTELLATION - NEW 21 PCT CORPORATE TAX RATE WILL APPLY FOR LAST 2 MONTHS OF FY RESULTING IN LOWER BLENDED STATUTORY TAX RATE VERSUS HISTORICAL 35 PCT RATE

* CONSTELLATION BRANDS - EXPECT THE NEW TAX LEGISLATION TO RESULT IN A REDUCTION IN EXISTING NET DEFERRED TAX LIABILITIES BY $300 MILLION TO $400 MILLION

* CONSTELLATION BRANDS - NET DEFERRED TAX LIABILITIES IS ONETIME, NONCASH BENEFIT AND WILL BE REPORTED IN Q4 ‘18 RESULTS

* CONSTELLATION - Q4 OPERATING MARGIN SEEN TO MODERATE DUE TO LOWER SEASONAL PRODUCTION VOLUME, RISE IN DEPRECIATION, LINE COMMISSIONING COSTS, HEADCOUNT ADDS

* CONSTELLATION BRANDS - RATIONALIZING LOW MARGIN VALUE BRAND SKUS TO IMPACT TO WINE AND SPIRITS REVENUE GROWTH BY ALMOST 100 BASIS POINTS FOR FY ‘18

* CONSTELLATION BRANDS - NEW REVENUE ACCOUNTING STANDARD STARTING IN FISCAL ‘19 TO RESULT IN SOME SALES INCENTIVES RECOGNIZED EARLIER THAN THEY ARE CURRENTLY

* CONSTELLATION BRANDS - OVERALL, CO IN PROCESS OF QUANTIFYING REVENUE ACCOUNTING CHANGES, BUT DOESN’T EXPECT A MATERIAL IMPACT TO NET SALES

* CONSTELLATION BRANDS CEO ROB SANDS - DON’T SEE ANY IMPACT FROM LEGALIZATION OF CANNABIS IN CALIFORNIA

* CONSTELLATION BRANDS CEO ROB SANDS - CANT SEE ANY REAL IMPACT ON BEVERAGE ALCOHOL SALES IN SIX STATES THAT HAVE LEGALIZED CANNABIS

* CONSTELLATION BRANDS CEO - NOT ENOUGH INFORMATION TO SAY WHETHER CO’S INVESTMENT IN CANADIAN CANNABIS CO IS CANNIBALISTIC OR COMPLEMENTARY RIGHT NOW Further company coverage:

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