Coca-Cola Co. (KO) reported better-than-expected fourth-quarter profit, although the soda giant saw revenue fall due to a stronger dollar and the global slump in consumer spending.

Coke executives struck an upbeat tone during their investor conference call, acknowledging the challenges posed by the weaker global economy, but saying that their efforts to cut costs and work more efficiently with their bottlers would help limit the impact of the slowdown. The stock was recently up 6.7% to 44.03.

"The company's earnings power is not as impaired by the macro environment as some had feared," said Stifel Nicolaus analyst Mark Swartzberg. "Their business model is in better condition than it was 10 years ago when we saw the last slowdown of this type."

Speaking to reporters, Chief Executive Muhtar Kent said the company has benefited from a stronger portfolio in categories such as juice, better distribution systems, and from offering consumers smaller packages at different price points.

Still, Coke saw pressures from currency fluctuations, which hurt fourth-quarter revenue by 7%. Coke said currency translation is likely to remain a pressure. Beverage makers, like other consumer companies, have seen added pressure on sales as spending has declined worldwide.

"Whether it is in western markets like the United States, Europe, Japan, or even in emerging markets, the consumer's habits have shifted. They are consuming more at home," Kent said, speaking to reporters.

Coke is counting on new products, such as a lower-calorie Vitamin Water product, to help shore up demand. The company has also worked with its largest bottler, Coca-Cola Enterprises Inc. (CCE), to set up a joint organization called Coca-Cola Supply that is intended to better manage supply-chain activity. Kent said the company is ahead of schedule on a productivity plan that is intended produce $500 million in annualized savings by 2011.

"We and our bottling partners have been continuing to invest very heavily on the ground in equipment, with the customers...and I think that's paying off," said Kent during the conference call. But he also noted the dangers of the economic slowdown, acknowledging that the company "may not achieve our targets in one or two quarters."

Kent said lower gasoline prices are helping a little in convenience stores and food-service drive-thrus in North America. "In terms of the food-service business, we are seeing a little bit of an improvement, but it's really too early to say if it is sustainable or not," he said.

The company doesn't plan to buy back more of its shares in 2009 due to the pending acquisition of China Huiyuan Juice Group Ltd.

Coca-Cola posted an 18% decrease in fourth-quarter net income on write-downs. The company reported net income of $995 million, or 43 cents a share, down from $1.21 billion, or 52 cents, a year earlier. Excluding write-downs related to Coca-Cola Enterprises and restructuring costs, earnings rose to 64 cents from 58 cents.

Revenue fell 2.8% to $7.13 billion, led by a 12% decline in Eurasia and Africa. Coke gets some 80% of its profits from overseas.

Analysts polled by Thomson Reuters expected per-share earnings of 61 cents on $7.52 billion in revenue.

North America sales climbed 5%, aided by price increases, which helped push volume down 3%.

Sparkling beverages, which include Coke's carbonated-drinks business, had worldwide volume growth of 2%. In the company's still-beverages segment, which include Dasani water and sports drink brand Powerade, volume increased 11%.

Coke has said a company-wide effort to cut costs won't affect a new global ad campaign for its signature cola, which seeks to boost appeal among young consumers. The beverage company is also seeking to build a global juice business through deals in Latin America, Russia and China.

-By Anjali Cordeiro, Dow Jones Newswires; 201-938-2408; anjali.cordeiro@dowjones.com

(Shirleen Dorman contributed to this report.)