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First bus on Wall Street legendary broker Andrew long I always try to invest in companies that don't depend on the broader economy to grow.
Constellation Brands which don't Robert Mondavi wines but -- vodka that's the good -- to pick an agreement from Sweden.
Your name a few brands actually tend to drink more -- during bad times.
All of this fits that description guys and explain how his company is dealing with the credit crisis after reporting a pretty good quarter and actually giving guidance for growth.
This morning as Rob Sands CEO Constellation Brands but into the show rob.
Yeah thanks for having me.
So personally it doesn't I don't business -- your outlook for next year are you not being impacted because you can't tap capital on the way that you did last year.
Well you know the beverage alcohol business is pretty non cyclical -- really not terribly affected by.
Economic cycles so you know people really don't drink any more during bad times they don't drink any less so -- our business remains.
Sir first of all thanks for coming God's great get a -- feel like this come up and tell us what's really going on there.
Your customers are they able to pay you are you finding any more defaults on people owing you money at it could take longer to -- you.
No you know our customers.
Aren't having any troubles paying us if you're really talking about the consumers you know.
Beverage alcohol products are what we call affordable luxuries it's not like buying a car buying a home you don't need to take out a loan.
They're relatively inexpensive you -- talking about a bottle of beer it's it's it's a dollar bottle of wine maybe ten dollars.
And people can still -- these things so we're not having any trouble getting paid.
Text follows up any concern when GE did one of the biggest companies in the world has problems with credit.
Well you know he you know of course you know were concerned about these kind of things as it affects.
People and in general and we hate to see other companies.
Having difficulties but you know really isn't it it's it's not having any impact on our business.
Our credit arrangements that is constellations.
Our are are in very good shape.
You know this quarter for us was a pretty good quarter.
Our our results were in line with expectation.
We paid down about 400 million dollars in debt.
We've generated very strong free cash flow so.
You know where we're concerned like everybody else but I would say more on a social level then -- a business level.
Well rob park everybody loves Mondavi wine and who doesn't right one -- Little bit more about your earnings you -- -- having your earnings today we'd be remiss just to talk about the big picture with you.
I'll let us know about your company your -- and Jack IC has stopped when I look at it it was down about.
What it what our investors are reading into what you're saying is it was a great water.
You know well you know.
It's it's hard to judge exactly why.
The stock reacted the way that it did you know clearly the markets down there's a lot of turmoil.
On the street with that with the credit crisis.
I think when I last -- the market was down nine as I said I don't know 350 points.
So I think that that's impacting our -- -- like it is everybody else's.
Our earnings per share where where -- well in line with our expectations and you know we've we've been getting the the growth that we've expected this year -- we reaffirmed our guidance for growth.
I can't really address.
You know how or why are stock trades the way it does date -- day but.
You know in general our stock is held up pretty well but because we are one of those businesses that.
Is non cyclical and we're we're we're not affected by these kind of market conditions to the same my degree is.
Other companies are.
Well thank you so much for -- -- a lot of information guys.
And Jeff Matthews is sticking around right yeah.
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