Coke earnings beat expectations

Atlanta-based Coca-Cola Co. on Wednesday reported a 14 percent increase in third-quarter net income to $1.9 billion as international markets drove growth at the world’s largest beverage firm.

The earnings translated into 81 cents per share, 10 cents higher than the same period a year ago. Analysts expected Coca-Cola to make 77 cents per share in the most recent quarter, according to a survey by Thomson Financial.

Coca-Cola’s revenue for the third quarter was $8.4 billion, 9 percent higher than the same period a year ago.

“We once again demonstrated our ability to perform consistently, delivering our eighth consecutive quarter of double-digit comparable earnings growth, despite an incredibly challenging economic environment,” Coca-Cola President and CEO Muhtar Kent said in a press statement. “We are managing our business for the future with continued investment behind our brands and an increased focus on effectiveness and efficiency.”

The Coca-Cola earnings release comes a day after rival PepsiCo reported a 9.6 percent decline in its third-quarter net income and said it would cut 3,300 jobs as part of a productivity initiative.

Coca-Cola’s overall beverage sales volume for the quarter was up 5 percent. International markets rose 7 percent, with strong growth in China, Turkey, India, Pakistan, Nigeria and South Korea.

North American sales volume, though, was down 2 percent in the third quarter, although sales volume for Coke Zero, a no-calorie carbonated soft drink, rose 30 percent in the quarter.

“We anticipate that the operating environment, especially in North America, will continue to be challenging as we finish 2008 and move into 2009,” Kent said in the press statement. “However, we have been diligent in taking the evolving landscape into account as we are planning for 2009, and believe that the solid fundamentals of our business, our strong balance sheet and cash generating capability, the experience of our management team and the strength of our brands will drive the business through these difficult economic times.”