("Constellation Brands 4Q Loss Narrows Amid Lower Charges," published at 8:29 a.m. EDT, incorrectly said margins improved and misstated analysts' revenue forecast for the period. The correct version follows.)

 
   DOW JONES NEWSWIRES 
 

Constellation Brands Inc.'s (STZ) fiscal fourth-quarter net loss narrowed amid lower restructuring charges, despite falling sales and margins.

While the company - the biggest global wine maker by volume - has been considered recession resistant, it hasn't necessarily been recession proof. Late last month, Constellation said it would eliminate 5% of its global work force of 9,000 people and projected disappointing earnings for the current fiscal year. The company said Wednesday it is aiming to save $25 million through its cost-cutting moves this fiscal year and more than $50 million by the end of the next year.

For the quarter ended Feb. 28, Constellation reported a net loss of $406.8 million, or $1.88 a share, compared with a prior-year net loss of $834.8 million, or $3.91 a share.

The latest period included $468 million in restructuring costs and other charges, mostly related to a decline in its U.K. and Australian businesses, compared with $888 million a year earlier.

Net sales, which exclude excise taxes, decreased 17% to $735 million. Analysts polled by Thomson Reuters were looking for revenue of $791 million.

Gross margin fell to 26% from 35.2%.

"Turbulent global trading conditions negatively impacted our sales mix in the fourth quarter, which in turn affected our gross profit margins," said Rob Sands. "However, we have been able to partially offset these challenges through cost reductions which reflect our flexibility to quickly adapt."

The company has been shifting its focus to higher-priced products, where most of the growth has been in the alcoholic beverages industry in recent years.

Branded wine sales, which represent the bulk of its earnings, fell 4% amid a sharp decline in demand in Europe. Spirits sales increased 6%, driven by the growth of Svedka vodka brand.

For the current fiscal year, the company expects per-share earnings of $1.60 to $1.70, in line with analysts' views for $1.65.

Shares fell 2% to $11.40 in recent trading and are off 28% so far this year.

-By Tess Stynes and Katherine E. Wegert, Dow Jones Newswires; 201-938-2473; tess.stynes@dowjones.com