Jan. 7 (Bloomberg) -- Constellation Brands Inc. dropped the most in almost two years in New York trading after the winemaker lowered the top end of its full-year profit forecast as sales slow.

Third-quarter net income fell 30 percent because of higher taxes, the maker of Clos du Bois and Robert Mondavi said today in a statement. Earnings excluding some costs for the year through February will be $1.68 to $1.72 a share, less than the $1.68 to $1.76 it had forecast.

Excluding one-time items, per-share earnings of 60 cents beat analysts’ estimates by 1 cent. The third quarter is generally Constellation’s largest and most profitable three months as retailers increase inventories for the Christmas and New Year’s holiday season.

Net income declined to $83.5 million, or 38 cents a share, from $119.6 million, or 55 cents, a year earlier. The company’s taxes rose 59 percent following $50 million in gains from foreign-currency hedging.

Sales for the three months through Nov. 30 declined 5.8 percent to $1.03 billion from $1.09 billion, the Fairport, New York-based company said. The slowdown was caused as the dollar gained against other currencies and consumers drank less wine.

Constellation Brands Chief Executive Officer Robert Sands said wine industry sales that jumped as much as 8 percent within the past two years have returned to growth rates that had been averaging about 4 percent to 5 percent a year.

“That appears to be a blip at this stage,” Sands said today in an interview.

For the year, sales will advance by a “low to mid single- digit” on a percentage basis, slower than its past forecast of a “mid single-digit” gain, said Constellation, the world’s largest winemaker.

Shares Fall

Constellation, which also distributes Corona beer in the U.S., dropped $1.39, or 8.2 percent, to $15.48 at 4:15 p.m. in New York Stock Exchange composite trading. The shares declined 33 percent last year.

Eight analysts surveyed by Bloomberg estimated average third-quarter profit of 59 cents. Five projected sales of $1.12 billon.

For the year, nine analysts said 2009 profit would be $1.69 a share.

Global wine sales excluding currency effects fell 2 percent in the quarter. Wine sales make up more than half the company’s annual revenue. Sales of spirits, which last year accounted for 6.7 percent of sales, increased 5 percent on the same basis.

To contact the reporter on this story: Duane D. Stanford in Atlanta at Dstanford2@bloomberg.net.

Last Updated: January 7, 2009 16:21 EST