(Updates with comments from conference call)
Coca-Cola Enterprises Inc.'s (CCE) third-quarter earnings rose
15% amid continued strong growth in Europe, and as price increased
boosted margins.
Volume fell 6.5%, and was down 10% in North America amid a shift
in the U.S. Independence Day holiday and prior-year Olympic-related
promotional growth.
Still, the company also raised its 2009 earnings forecast to
$1.54 to $1.57 a share, from its September forecast for earnings at
the high end of its boosted July view for $1.44 to $1.49. In
contrast, PepsiAmericas Inc. (PAS) earlier Wednesday cut its 2009
view.
The U.S. bottling industry has been hurt as shoppers curb
spending, but even in better times the sector has struggled to keep
up with changing consumer habits as people have been abandoning
carbonated sodas for other beverages.
The largest bottler for Coca-Cola Co. (KO) reported a profit of
$247 million, or 50 cents a share, up from $214 million, or 44
cents, a year earlier. Excluding hedging and restructuring impacts,
earnings rose to 51 cents from 46 cents.
Revenue decreased 3% to $5.57 billion but were flat excluding
currency impacts. Revenue fell 4% in North America and 1% in
Europe.
Analysts polled by Thomson Reuters most recently forecast
earnings of 46 cents on revenue of $5.71 billion. On a conference
call, company executives said it will consider possible uses for
its cash on hand including acquisitions and returning cash to
shareholders in some form.
Gross margin rose to 38.9% from 36.8% on higher prices.
Volume rose 4% in Europe, driven mostly by its Coca-Cola brands,
with Coca-Cola Zero sales up more than 15%. Bottled water sales
rose 25% amid acquisitions.
Shares closed Tuesday at $20.02 and didn't trade premarket. The
stock is up two-thirds this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com
(Anjali Cordeiro contributed to this article)
