Industryweek 4175 Coca Cola Logo Promo

Coke Q1 Earnings Fall 14.8%

April 16, 2013
Operating income in the North American region fell 24%, mainly due to investments in the ongoing productivity and reinvestment program.

WASHINGTON -- Coca-Cola (IW 1000/739) reported a fall in earnings for the first quarter Tuesday as sales sagged in the key U.S. and European markets and restructuring costs hit North American profits.

Coke's net income for the quarter to March 31 fell 14.8% to a lower-than-expected $1.75 billion, compared to $2.05 billion a year earlier.

Operating revenues fell 1% to $11.04 billion, while operating income fell 4% to $2.41 billion.

Coke said operating income in the crucial North American region fell 24%, mainly due to investments in the ongoing productivity and reinvestment program.

Sales in Latin American grew 4%, to a level surpassing Europe, where sales edged lower amid the ongoing recession.

Sales in the Eurasia and Africa division jumped 9%, but mainly due to the company's acquisition of Saudi Arabia bottler Aujan.

The company "once again delivered solid growth against the backdrop of a still uncertain global economy," said Coke chief executive Muhtar Kent.

 "Guided by our 2020 Vision, our roadmap for winning together with our global system bottling partners, we enter 2013 and the fourth year of our journey to 2020 focused and on track to reach our goals."

The company also announced a major effort to better carve up territory with five major U.S .bottlers for the company's beverages: Coca-Cola Bottling Co. Consolidated, Coca-Cola Bottling Company United, Inc., Swire Coca-Cola USA, Coca-Cola Bottling Company High Country and Corinth Coca-Cola Bottling Works, Inc.

The effort "might include an outright territory sale, a territory swap, or a sub-bottling arrangement, under which the bottler would make ongoing payments in exchange for exclusive territory operating rights," Coke said.

The effort is aimed at "allowing each bottler to better service local customers and provide more efficient execution."

Copyright Agence France-Presse, 2013

Popular Sponsored Recommendations

The Executive Guide to Best Practices for Ecommerce Integration

Oct. 2, 2023
Get ready to elevate your post-checkout experiences and thrive in today's unpredictable market. Learn why integration and automation are crucial to run operations more smoothly...

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

MES vs. Operations Platforms: Buyer's Guide

Sept. 19, 2023
Now more than ever, manufacturers are rethinking legacy MES's role in their operations. This comprehensive guide compares traditional manufacturing execution systems and operations...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!