Beer maker Molson Coors forecasts downbeat annual profit on aluminum tariff impact

Aug 5 (Reuters) - Molson Coors TAP.N forecast a drop in its annual profit on Tuesday, hit by tariff impacts on costs of aluminum it uses for its beverage cans amid macroeconomic uncertainty in the U.S.

The Trump administration's fluctuating tariff policies have pressured consumer spending in the U.S., causing customers to pare back on discretionary spending such as alcohol.

The forecast revision comes as a result of "the anticipated ongoing macroeconomic impacts on the industry, our lower-than-expected U.S. share performance, and higher-than-expected indirect tariff impacts on the pricing of aluminum," CEO Gavin Hattersley said in a statement.

The company, which produces its beer locally at breweries in Colorado, said it expects incremental costs of between $20 million and $35 million in the second half of the year, on account of a tariff-driven rise in U.S. Midwest aluminum premium AUPc1.

Tariff on aluminum metal shipped into the U.S. have doubled to 50% since June, from the previous 25% duty imposed in March.

The company expects annual adjusted earnings per share to fall 7% to 10%, compared to its prior forecast of a low single-digit rise.

It expects net sales for the year to decline 3% to 4%, compared with previous expectations of a decline in the low single-digits.

The Blue Moon witbier maker had gained exclusive US rights to British company Fevertree's FEVR.L products in an $88-million deal in January in a bid to capture the domestic demand for non-alcoholic drinks, and both companies, in June, agreed to equally split costs of the 10% tariff to be imposed on UK imports to the U.S.

Shares of Molson Coors were up about 3% in early trading after the company posted a quarterly results beat.

The company's net sales fell 1.6% to $3.2 billion in the second quarter ended June 30, but came ahead of analysts' estimate of $3.1 billion, while underlying earnings per share of $2.05, beat estimates of $1.83 cents, according to data compiled by LSEG.

The company said the quarter benefited from pricing growth and favorable timing of U.S. shipments.