Anheuser-Busch (BUD) forecasts heady sales

After a quiet start to 2007, Anheuser-Busch's (NYSE: BUD) prospects have brightened considerably, according to CEO August A. Busch IV, speaking at the Lehman Brothers Consumer Conference. The company now expects to surpass its target EPS growth of 7-10% for the year. Contributing to the stronger than expected performance has been BUD's growing stable of import and boutique beers, especially those brought on-line through its investment in Mexico's Grupo Modelo. International sales have also pushed up the bottom line.

Also contributing to the 2.7% growth in revenue per barrel was a successful price increase. The soft market for its brews that it experienced in the first quarter has turned around, with sales to retailers up 2.4%. The CEO also touted the company's aggressive pursuit of the China market.

The growth is reflected in good news for investors. In July, BUD boosted its quarterly dividend by 11.9%, and intends $2.5 billion in share repurchases this year.

After a cool spring and early summer, the weather has been as hot as a firecracker in the Midwest, so I'm not surprised by the sales increase. Looking for a stock play to make money on global warming? Consider taking a position behind a tall, cold one.