Constellation Brands, the world’s largest wine company, has posted full year losses of $301 million, with further warnings of losses as over $100 million in charges will bite over the year to come.
The further costs will come from Constellation’s decision to cut further jobs and to restructure the company.
Net profit for the year rose by 9% to $351 million, but with a flat operating profit.
European losses in particular edged the company’s net sales down by 3% for the full year, with a 9% sales dip in Europe, a 3% drop in Australia and New Zealand, and an 8% rise in North America.
Constellation plans to cut nearly 5% of staff across its global workforce of 9,000 over the next year.
Constellation CEO and president Rob Sands said: "Constellation is focused on the right strategies during these tough economic times to generate cash, pay down debt and increase return on invested capital," said Sands.
"Given the difficult and uncertain economic conditions, we are cautious with our outlook for fiscal 2010. However, our business strategy remains intact, we have a clear path forward and plan to be prudent in managing the bottom line by focusing on right-sizing our organisation, creating efficiencies and rapidly deleveraging.
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