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Updated: 1:55 p.m. Wednesday, Feb. 10, 2010 | Posted: 9:38 a.m. Wednesday, Feb. 10, 2010
The Atlanta Journal-Constitution
(First reported by the AJC on Twitter here.)
For Atlanta-based Coca-Cola Enterprises, 2009 was the tale of two continents.
The giant beverage bottler on Wednesday said its comparable sales volume fell 5 percent in North America last year. The company was able to push through price increases to raise profits, but it forecasts flat revenues this year across the continent.
"We face lingering economic weakness throughout our territories and an evolving competitive environment," John Brock, the bottler's chief executive, said in a statement.
Meanwhile, CCE enjoyed its third consecutive year of profit growth in Europe, with comparable volume growing more than 5 percent.
CCE said it expects its 2010 revenue to increase at a low single-digit rate across the world, driven by mid single-digit growth in Europe. It predicted essentially flat revenue in North America, which analysts had expected.
The company earned $110 million or 22 cents per share in the fourth quarter, up from a reported loss of $1.45 billion or $2.99 a share in the same period a year ago. Those results were in line with Wall Street's expectations. Revenue declined 2.5 percent in the fourth quarter, to $5.11 billion.
Performance in the U.S. was soft but the company's overall numbers were "reasonably good," Credit Suisse analyst Carlos Laboy wrote Wednesday. "Everything about Europe seemed strong."
Beverage companies in North America face several challenges, including cash-strapped consumers and widespread concern about diets and health. Critics have periodically accused carbonated soft drinks of contributing to obesity and other risks. The combination of a shaky economy and health concerns has not been good for sales.
In response to high-profile concern in the White House and elsewhere about childhood obesity, the beverage industry on Tuesday announced plans to make calorie information more prominent on labels. (See the AJC's coverage here.)
The fortunes of Coca-Cola Enterprises are closely tied to that of Coca-Cola, which owns about 35 percent of the bottler. In Coca-Cola's most recent quarter, North America was the only region that did not contribute rising sales for the world's biggest beverage company. The last time Coca-Cola increased its sales volume in North America was two years ago, in the fourth quarter of 2007. (See the AJC's coverage here.)
"Our ultimate goal is to generate growth, and I think you will see us do that," Coca-Cola chief executive Muhtar Kent told the AJC on Tuesday. But "the U.S. consumer is still very confused. This will be a very slow recovery."
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