After warning in May that it would fall short of expectations in the second quarter, Anheuser-Busch Companies, Inc. (NYSE: BUD) surprised the analysts by posting a strong performance [pdf]. It reported a net sales increase of 6.1% and an increase in diluted earnings per share of 7.4%. The EPS of $0.88 exceeded the $0.87 projection of analysts polled by Thompson Financial.

Unlike first quarter results, this quarter showed strong sales in the U.S. as well as internationally. U.S. beer sales volume was up 2.3%, due in part to the success of import brands that the company distributes. This and price increases resulted in a 3.1% increase in revenue.

International sales continued to grow, up 4% due primarily to China, Canada and Mexico, partly offset by soft sales in Great Britain. Anheuser-Busch branded products grew 2.2% in volume worldwide.

The performance of Anheuser-Busch's entertainment sector, e.g. Busch Gardens, was up over $5 million as well, due to increased attendance and pricing.

The bottom line was moderated by increasing production and marketing costs, the latter a sign that the beer market continues to mature.

Anheuser-Busch's stock has been complicated by speculation by Citigroup that the company will eventually merge with InBev within the next two years.