Nine days after the announcement of the historic buyout of Anheuser-Busch by Belgium-based InBev, A-B management stressed the efficacy of its current strategy as it reported substantial performance gains for the second quarter and first half. Net sales grew 4.6% for the quarter (to $4.7 billion) and 5.3% year-to-date (to $8.8 billion), while diluted earnings per share increased 9.2% and 7.1% for the respective periods. A-B's initiatives over the past two years, including new products such as Bud Light Lime, "are gaining traction with consumers," said VP/CFO W. Randolph Baker, during the company's Q2 earnings conference call. Baker stressed that A-B's plans and business will proceed as usual during the transition period. During a Q&A, he said that InBev is "very pleased" with A-B's strategic plan to accelerate earnings growth, "specifically our Blue Ocean plan." The Blue Ocean cost-cutting plan, announced in June, includes encouraging early retirement among 13,000 employees. The plan originally called for savings of more than $750 million through 2009 and $1 billion through 2010. After the acquisition announcement, a joint A-B/InBev statement projected that the savings will be at least $1.5 billion annually by 2011. (InBev's cost-cutting reputation prompted Teamsters to respond to the A-B acquisition announcement with a release "questioning the reliability" of InBev's stated commitment not to close any U.S. breweries or cause any significant job losses among production workers.) Baker's comments echoed those of A-B president/CEO August A. Busch IV in the company's earnings press release. "The company's new strategic plan expands and accelerates our cost reduction and operation efficiency initiatives generated by our Blue Ocean project, as well as our planned price increases," Busch stated. "These initiatives, combined with our increased marketing and selling efforts, are all contributing to our very strong outlook for profit growth." Asked about the integration of A-B as an InBev division, Baker said the process is "going relatively well," adding that it is obviously very early in the process. He confirmed that the companies expect the transaction to close by year-end. In regard to the effect of InBev's acquisition on A-B's reported interest in possibly acquiring SABMiller (which is poised to give A-B greater competition through its joint venture with Coors Brewing Co.), Baker said he still believes that SABMiller "represents an opportunity" for A-B, although this would depend on "specific market conditions." More highlights of A-B's financials report: