Italian drinks maker Campari posted nine-month earnings before interest, tax, depreciation and amortisation of 127.4 million euros ($164.1 million) on Monday, up 7.4 percent and at the top end of analyst forecasts.

Campari, famous for its bitter red aperitif, said on Monday sales rose 7.7 percent to 544.7 million euros in January-September, below analysts' expectations.

Campari shares hit their highest level of 2004 earlier on Monday at 45.20 euros but weakened after the results and were down 0.4 percent at 44.55 euros at 1235 GMT.

Five analysts' forecasts for nine-month sales ranged from 546.4 million euros to 560.4 million. They expected earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of 123.5-127.1 million euros.

Campari said a 30.9 percent drop in group profit before taxes to 70.5 million euros was due to lower extraordinary income which in 2003 included gains from a property sale.

A fall in the value of the U.S. dollar also weighed on profit growth. At constant exchange rates, EBITDA would have risen 11.2 percent with revenues up 10.6 percent.

U.S. sales, which account for over a quarter of turnover, fell nearly 10 percent to 144.3 million euros, hit by currency swings. At constant rates, U.S. sales rose 4.7 percent.

Healthy growth in Brazil, Italy and Japan countered weak business in Germany where the distribution of mixed drink Campari Mixx was suspended after a rise in taxes on ready-to-drink products, the company said.Campari's management is due to hold a conference call at 1600 GMT on Monday.

(From Reuters, November 08, 2004)

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