Coke posted a $3.17 billion loss in the second quarter after a $5.3 billion write down on the value of North American assets as consumers bought less soda and water.
KO first-quarter net income rose 19% to $1.5B as strong international sales offset a weak domestic market. Unit case volume was up 6% overall -- 7% internationally and flat in North America. Domestic sales have been hurt by the current economic downturn, while Coca-Cola recorded double-digit growth in emerging markets such as China, India, Turkey and Brazil during the quarter.
Coca-Cola today reported solid earnings growth on the back of surging global sales. Revenue grew 24% while net income rose 79% from the year earlier period... U.S. sales were sluggish.
KO reported a 13% increase in income on an 8% increase in sales volume. Approximately 3 percentage points were attributed to the the weakening U.S. dollar, as the company makes around 80% of its operating profit outside of the U.S. The increase in sales came on the heels of growing its portfolio of drinks, including Vitaminwater (via acquisition) and Coke Zero.
The sompany announced and closed the acquisition of Energy Brands, the maker of Vitaminwater. This acquisition pushes the company firmly in the direction of "enhanced" water and expands beyond the traditional soft drinks category the company dominates.
The Coca-Cola Company announced a 14% increase in profits in the first quarter of 2007 versus the same quarter in 2006, driven by Coca-Cola Zero sales. KO also announced a 6% increase in unit-case volume in the first quarter.
Stocks traded lower on expectations of a large downward revision of gross-domestic product (GDP) growth as well as a general fall in confidence in the stock market.
KO’s stock rose following a report from the Institute of Supply Management (ISM) stating that inflation was relatively weaker than expected and that growth in the service sector had improved in November.
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