Printer Friendly

THE COCA-COLA COMPANY ANNOUNCES STRONG INCREASE IN THIRD QUARTER EARNINGS PER SHARE

 ATLANTA, Oct. 21 /PRNewswire/ -- The Coca-Cola Company (NYSE: KO) announced today that third quarter earnings per share increased to $0.49, excluding the previously announced $0.04 per share negative impact of the new tax law. In addition, third quarter results were favorably impacted by the reversal of a reserve for bottler litigation amounting to $0.01 per share. Excluding this one-time item, earnings per share increased 17 percent to $0.48. The 17 percent gain in third quarter earnings per share follows a 21 percent increase in the second quarter and comes on top of a 21 percent increase in the third quarter of 1992. Including the above two unusual items, reported earnings per share increased 10 percent to $0.45 and net income grew 9 percent to $590 million in the third quarter.
 "We are very pleased with the strong third quarter earnings per share growth in the midst of continuing weak economic conditions in major markets around the world," said Roberto C. Goizueta, chairman, Board of Directors and chief executive officer. "Despite the challenging operating environment, we remain on track to report earnings per share growth of 19 to 20 percent for the full year 1993, excluding nonrecurring items," Mr. Goizueta continued. "During the quarter, we increased our global market share, expanding our position as the world's largest beverage company."
 For the year-to-date, earnings per share increased 19 percent to $1.35, on top of a 19 percent increase in the first nine months of 1992, and net income advanced 18 percent to $1.8 billion, excluding nonrecurring items. Including nonrecurring items in 1993, earnings per share increased 17 percent to $1.32 and net income grew 15 percent to $1.7 billion for the year-to-date.
 Worldwide unit case volume and gallon shipments grew 5 percent for the year-to-date. In the third quarter, worldwide unit case volume advanced 4 percent and gallon shipments grew 5 percent. Operating income advanced 11 percent in the third quarter and 14 percent for the year-to-date, excluding nonrecurring items. On a weighted average basis, the U.S. dollar was approximately 5 percent stronger in the third quarter versus key hard currencies in the same period one year ago.
 North American Operations
 In North America, unit case volume sold to retail customers grew 5 percent in the third quarter, driven by a 6 percent increase in the United States. The strong volume performance in the United States resulted from solid gains in the Company's core brands as well as sales of new products, such as PowerAde, Nestea, and Minute Maid Juices To Go. North American gallon shipments of concentrates and syrups to bottlers increased 5 percent for the quarter, including growth of 5 percent in the United States. For the year-to-date, unit case volume and gallon shipments in North America grew 5 percent.
 Solid growth momentum continued at Coca-Cola Foods during the third quarter as unit case volume grew 16 percent and operating income increased strongly versus the prior year. Operating margins widened for the year-to-date as lower costs offset aggressive merchandising and pricing. Year-to-date, unit case volume increased 23 percent. "It is rewarding to witness the continuing excellent performance by Coca-Cola Foods," said Mr. Goizueta.
 International Operations
 Unit case volume and gallon shipments in international operations increased 5 percent for the year-to-date and the Company continued to increase its share of carbonated soft drink sales. In the third quarter, unit cases grew 4 percent and gallon shipments increased 5 percent. Unit volume of fountain soft drink products sold in international operations increased 10 percent in the third quarter and 13 percent year-to-date.
 In the Northeast Europe/Middle East Group, unit case volume increased a strong 18 percent and gallon shipments advanced 19 percent for the year-to-date. In the third quarter, unit case volume grew 12 percent and gallon shipments increased 10 percent. Unit case volume grew 14 percent in East Central Europe in the third quarter, where the Company continues to expand its market leadership through aggressive investment in production and distribution infrastructure. In the Middle East division, unit case volume increased 16 percent in the third quarter, fueled by increased availability, particularly in Saudi Arabia and Jordan.
 Unit case volume in the European Community Group increased 1 percent and gallon shipments were up 3 percent for the year-to-date. Third quarter unit cases were 4 percent below the volume levels of the prior year. Unit case growth of 21 percent in France and 1 percent in Great Britain was offset by declines of 11 percent in Germany and 4 percent in Spain. "In a weak economic environment with unseasonably cold and wet weather throughout Europe, the Company increased its overall share of carbonated soft drink sales," Mr. Goizueta said. Third quarter gallon shipments in the European Community Group were even with the prior year.
 In the Africa Group, unit case volume rose 8 percent and gallon shipments decreased 2 percent for the year-to-date. Unit case volume grew 11 percent in the third quarter and gallon shipments increased 1 percent. Unit case volume rose 13 percent in the Central Africa region and 11 percent in Nigeria, resulting from increased product availability and promotions.
 Unit case volume in the Latin America Group increased 5 percent and gallon shipments grew 7 percent for the year-to-date. In the third quarter, unit case volume increased 6 percent and gallon shipments grew 7 percent. In Brazil, unit case sales advanced 12 percent in the quarter as the Coca-Cola system continued to demonstrate its ability to grow volume in a very difficult economic environment. Third quarter unit case volume in Argentina and Chile increased 11 percent and 15 percent, respectively. On a 3 percent unit case gain in Mexico, the Company increased its share of carbonated soft drink sales, particularly in Mexico City.
 In the Pacific Group, unit case volume increased 5 percent and gallon shipments grew 3 percent for the year-to-date. Gallon shipments grew 7 percent and unit case volume rose 4 percent in the third quarter. Unit case volume in Japan was 8 percent below the prior year. In Japan, typhoons and an exceptionally heavy rainy summer season depressed volume in the vending channel, which accounts for approximately 55 percent of Company products sold in Japan. Unit case volume increased 28 percent in Australia, 5 percent in the Philippines and 39 percent in China, more than offsetting a 5 percent decline in Korea.
 China is one of the Company's fastest growing emerging markets. In the first nine months of the year, China has added nearly 25 million incremental unit cases or the equivalent of creating a market generating annual volume the current size of Ireland.
 Unusual Items
 As a result of the new U.S. tax law, the Company was required to record charges for additional taxes and tax related expenses which reduced net income by approximately $47 million, or $0.04 per share, in the third quarter. Also during the third quarter, the Company reversed a provision for bottler litigation resulting from a favorable court ruling. The reversal benefitted earnings by $14 million, or approximately $0.01 per share.
 Balance Sheet
 The Company again closed the quarter with a strong balance sheet. Net debt to net capital was 26.5 percent as of Sept. 30, 1993.
 Under its share repurchase programs, the Company purchased approximately 3 million shares in the third quarter and 11 million for the year-to-date. The Company is still in the early stages of a program to acquire up to 100 million shares through year 2000.
 THE COCA-COLA COMPANY AND SUBSIDIARIES
 (In millions, except per share data)
 (Excluding Unusual Items)
 Third quarter 1993 1992 Pct. chg.
 Net operating revenues $3,629 $3,508 3
 Operating income 848 766 11
 Income before income taxes 897 787 14
 Net income $ 623 $ 540 15
 Net income per share $ 0.48 $ 0.41 17
 NOTE: 1993 results exclude the impact of changes in the U.S. tax law and the reversal of a reserve related to bottler litigation.
 Nine months 1993 1992 Pct. chg
 Net operating revenues $10,584 $9,830 8
 Operating income 2,484 2,172 14
 Income before income taxes 2,533 2,174 17
 Net income $1,755 $1,491 18
 Net income per share $ 1.35 $ 1.13 19
 NOTE: 1993 results exclude the impact of changes in the U.S. tax law and the reversal of a reserve related to bottler litigation; 1992 results exclude the catch-up adjustment for a change in accounting for postretirement benefits other than pensions.
 THE COCA-COLA COMPANY AND SUBSIDIARIES
 (In millions, except per share data)
 Third Quarter
 1993 1992 Pct. chg.
 Net operating revenues $3,629 $3,508 3
 Cost of goods sold 1,343 1,386 (3)
 Gross profit 2,286 2,122 8
 Selling, administrative and
 general expenses 1,457 1,356 7
 Operating income 829 766 8
 Interest income 38 47 (19)
 Interest expense 38 42 (10)
 Equity income 24 34 (29)
 Other income (deductions) - net 17 (18) ---
 Income before income taxes 870 787 11
 Income taxes 280 247 13
 Net income $ 590 $ 540 9
 Net income per share $ 0.45 $ 0.41 10
 Average shares outstanding 1,300 1,314 (1)
 Nine months
 1993 1992 Pct. chg.
 Net operating revenues $10,584 $9,830 8
 Cost of goods sold 3,900 3,791 3
 Gross profit 6,684 6,039 11
 Selling, administrative and
 general expenses 4,219 3,867 9
 Operating income 2,465 2,172 13
 Interest income 105 120 (13)
 Interest expense 124 128 (3)
 Equity income 92 57 61
 Other deductions - net 32 47 ---
 Income before income taxes
 and change in accounting
 principle 2,506 2,174 15
 Income taxes 784 683 15
 Income before change in
 accounting principle 1,722 1,491 15
 Catch-up adjustment for change
 in accounting for postretirement
 benefits other than pensions
 Consolidated operations --- (146) ---
 Equity investments --- (73) ---
 Net income $1,722 $1,272 35
 Income per share:
 Before change in accounting
 principle $ 1.32 $ 1.13 17
 Catch-up adjustment for change
 in accounting for postretirement
 benefits other than pensions
 Consolidated operations --- (.11) ---
 Equity investments --- (.06) ---
 Net income per share $ 1.32 $ 0.96 38
 Average shares outstanding 1,303 1,319 (1)
 -0- 10/21/93
 /CONTACT: Linda Peek of The Coca-Cola Company, 404-676-4848/
 (KO)


CO: The Coca-Cola Company ST: Georgia IN: FOD SU: ERN

BR-CF -- AT001 -- 4953 10/21/93 08:13 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1993
Words:1731
Previous Article:COMMUNICATION INTELLIGENCE REPORTS THIRD QUARTER 1993 RESULTS
Next Article:MCI ACHIEVES DOUBLE-DIGIT GAINS IN REVENUE, TRAFFIC AND OPERATING INCOME
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters