Coke volume rises, earnings up slightly

By Joe Guy Collier

For the AJC

Coca-Cola Co.’s global case volume rose 2 percent in the third quarter as international markets continued to lead the company’s growth.

Atlanta-based Coca-Cola, the world’s largest beverage firm, reported net income in the third quarter of $1.9 billion, up slightly from the same quarter a year ago.

Revenues fell 4 percent to $8 billion, primarily because of unfavorable foreign exchange rates. Coca-Cola’s overseas results were diminished when translated from foreign currencies to U.S. dollars.

Excluding one-time and special items, Coca-Cola had earnings per share of 82 cents, a penny higher than expectations, according to a survey of analysts by Thomson Reuters.

Coca-Cola’s international volume rose 4 percent with strong gains in Mexico, Italy and India. In North America, though, case volume fell 4 percent.

North American results were affected by the recession, aggressive pricing from competitors and a shift in the July Fourth holiday from the third to second quarter.

“I am pleased to report that we have again delivered solid results this quarter,” Coke Chairman and CEO Muhtar Kent said in a press statement. “We continue to grow our currency-neutral revenues, gain global nonalcoholic ready-to-drink volume and value share, expand our margins and invest in our business, all while generating tremendous cash flow.

“The fundamentals of our business remain strong and our franchise system is delivering results that keep us on track to achieve our long-term growth expectations. Although we expect the consumer to continue facing economic uncertainties into 2010 and for consumer sentiment to recover slowly, we believe more than ever that we have the right strategies being executed, the right leadership team in place and have taken the right actions this year to drive continued growth and to make the most of the abundant opportunities before us.”