Coca-Cola Co., the world's largest beverage company, reported second-quarter financial results Thursday that exceeded analyst expectations.

But the results were pulled down by one-time charges at its largest bottler, Coca-Cola Enterprises. Coke owns about 35 percent of CCE's stock.

Coke President and CEO Muhtar Kent, who took the helm July 1, also announced plans to cut $400 million to $500 million in annual costs by the end of 2011 through productivity initiatives, such as improving the efficiency of the company's supply chain.

The savings would be invested in building up brands, Kent said. Job cuts were not outlined as part of the plans, but Coke has a hiring freeze through the end of the year for most of its North American operations.

While upbeat about the results during his first financial report as CEO, Kent stressed that productivity will be a hallmark of Coke.

"Going forward, we will remain relentless in becoming more efficient, leaner and more adaptive to the changing market conditions while continuing to invest behind our brands," Kent told analysts in a conference call.

Coke's second-quarter results required some careful reading to decipher. Coke revenue rose 17 percent to $9 billion. Its net income slid 23 percent, to $1.4 billion, from the same period a year ago.

The decline in profits, though, was largely caused by a noncash charge on the write-down of North American assets at CCE, which Coke had to take into account because of its investment in the bottler.

Excluding one-time charges such as the CCE write-down, Coke had earnings per share of $1.01, a 19 percent increase to comparable earnings a year ago. The company was expected to make 96 cents per share in the second quarter excluding one-time items, according to a survey of analysts by Thomson Financial.

Coke stock closed Thursday at $50.34, down 4 percent.

Investors likely were spooked by the write-down at CCE and a slowdown in sales volume for the quarter, said Jack Russo, an analyst with St. Louis-based Edward Jones.

Coke also has stakes in major bottlers in Latin America, Europe and Australia. Bottlers face difficult times with higher commodity costs, Russo said.

Coke, though, still has a bright outlook because of its international presence, he said. "There's no reason to be anything but optimistic long term given the brand power and their position in these overseas markets," Russo said.

North America continued to be a sore spot for Coke. Coke's worldwide case volume rose 3 percent in the second quarter as it experienced strong growth in emerging markets such as China, Turkey, India and Eastern Europe.

Coke's case volume was flat in North America, where it faces a slowdown in the U.S. economy. Coke Zero and Glaceau, maker of Vitaminwater, posted double-digit increases. Case volume for carbonated soft drinks dropped 4 percent, hurt by sales at restaurants and hotels.

Kent reiterated the company's outlook for 2008. Earlier this year, Coca-Cola said it has long-term goals to grow sales volume by 3 percent to 4 percent and increase earnings per share in the high single digits.

"We remain confident in our ability to achieve long-term sustainable growth, despite the slowdown in the U.S. economy, given our balanced geographic mix and brand portfolio," Kent said.

COCA-COLA CO.

2nd-quarter results

> Revenues rose 17 percent to $9 billion, and net income declined 23 percent to $1.4 billion.

> The drop in profits was caused primarily by one-time charges at Coca-Cola Enterprises. Coke owns 35 percent of CCE's stock. Earnings rose 19 percent excluding one-time items.

> Worldwide case volume was up 3 percent. North America volume was flat. International was up 5 percent.

> Coke plans to save $400 million to $500 million a year by the end of 2011 through productivity initiatives.