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Last Update: 16-Apr-13 07:47 ET
Coca Cola shares rise 3% following better than expected earnings
Coca-Cola (KO $41.31 +1.22) reported first quarter earnings of $0.46 per share, ex items, $0.01 better than the Capital IQ consensus of $0.45, while revenues fell 0.9% year/year to $11.04 billion versus the $10.98 billion consensus. Items impacting comparability reduced first quarter 2013 reported EPS by a net $0.07 and increased first quarter 2012 reported EPS by a net $0.01. In both periods, these items included restructuring charges, costs related to global productivity initiatives, gains/charges related to equity investees, net gains/losses related to our economic hedges, primarily commodities, and certain tax matters. The Coca-Cola Company reported worldwide volume growth of 4% for the first quarter, with 3% growth in Coca-Cola Americas and 5% growth in Coca-Cola International. The Company reported solid volume growth in key developed markets, including Germany (+3%), North America (+1%) and Japan (+1%). Europe volume was even for the first quarter and a sequential improvement from fourth quarter 2012, despite ongoing uncertain macroeconomic conditions and unseasonably cold weather. KO's China business delivered 1% volume growth in the quarter, a sequential improvement from fourth quarter 2012, despite the economic slowdown and poor weather in the quarter. "As we look ahead to the remainder of 2013, we continue to expect China's economic slowdown to have a short-term effect on our industry and on our business, although we do expect to see some gradual improvement in consumer disposable income and, as a result, sequential improvement for our business as the year progresses."
