ZCZC
BCN-35
US-BEVERAGE-EARNINGS-COCACOLA
Coca-Cola shares fall on disappointing profit outlook
NEW YORK, Feb 14, 2019 (BSS/AFP) – Coca-Cola returned to profitability in the
fourth quarter Thursday, but shares fell as a disappointing profit outlook
pointed to a challenging soda market.
The cola giant reported quarterly earnings of $870 million, compared with a
loss of $2.8 billion in the year-ago period when it was hit by one-time tax
costs.
Revenues fell six percent to $7.1 billion due to the sale of bottling
operations to franchise companies.
Volume was flat during the quarter globally, with strength in Central and
Eastern Europe offset by weakness in Argentina and Central America, the
company said.
Full-year volume grew by two percent, led by developing markets and
“slight” growth in developed markets.
Coca-Cola and rivals have had a hard time boosting sales of soda due to
worries about health and obesity. The company has responded with more small
packages, revamps of popular diet sodas and increased offerings in water and
non-soda beverages.
The company forecast 2019 earnings per share would be in a range of one
percent up or down from the $2.08 in 2018, significantly below the $2.28 per
share seen by analytss.
Shares fell 2.1 percent to $48.73 in pre-market trading.
BSS/AFP/SR/1825 HRS