Coca-Cola reports nearly flat income in quarter

by Staff
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ATLANTA — Net income for The Coca-Cola Co. for the second quarter ended June 29 was $1,851,000,000, or 80c per share on the common stock, up 1% compared with $1,836,000,000, or 78c on the common stock, during the same quarter of 2006. Net operating revenue was $7,733,000,000, a 19% increase from $6,476,000,000 during the same quarter of the previous year.

Neville Isdell, chairman and chief executive officer, said while he was pleased with the performance, the company continues to manage for the long-term.

"This is our second consecutive quarter of 6% unit case volume growth and double-digit comparable earnings growth," Mr. Isdell said. "We continue to demonstrate the growth potential of sparkling beverages, which delivered 4% growth in the quarter, while also driving 12% growth across our ever-expanding still portfolio. As we enter the second half of the year, we remain focused on leveraging our leading brands, building our innovation pipeline and driving productivity — the platform for delivering long-term sustainable growth."

Operating income for North America was $500 million, up 1% from $493 million during the same quarter of the previous year. Operating revenues were $2,083 million, up 9% from $1,909 million during the same quarter of the previous year.

The company said the North American revenues were influenced by a 1% decrease in concentrate sales offset by positive pricing, a mix benefit from strong sales of energy drinks and Powerade, and an increase due to acquisitions. The company attributed the growth in operating income to net revenue increases, which were partially offset by the impact of higher input costs on the finished goods business. Unit case volume decreased 2% in North America during the quarter.

The company also completed the acquisition of Glaceau during the second quarter.

"Our results continue to be led by our international operations, which once again delivered 9% unit case volume growth," said Muhtar Kent, president and chief executive officer. "Performance in important markets, such as Japan, Germany, India and the Philippines, is showing signs that the actions we’ve taken are working. Much work remains to be done as our business and industry evolves, but each quarter — including now in North America — we are making steady progress. I am confident that with our focused and effective strategic agenda supported by a renewed confidence within our organization, we will continue to deliver growth and value to our shareowners over the long term."

Throughout the world, the company maintained or gained value share in beverage categories such as sparkling beverages, juice and juice drinks, sports drinks, water, ready-to-drink teas and energy drinks.

For the six months ended June 29, total company net income was $3,113,000,000 million, or $1.35 per share — up 6% compared with $2,942,000,000, or $1.25 per share, during the same period of the previous year.

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