The Coca-Cola Company Reports First Quarter 2007 Results.* First quarter EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.54 increased 15 percent; after considering items impacting comparability, EPS of $0.56 a 14 percent increase. * Net revenue growth of 17 percent on worldwide unit case volume growth of 6 percent, highest quarterly volume growth rate since 2002. * International unit case volume up 9 percent, led by 7 percent growth in Trademark Coca-Cola Coca-Cola soft drink found throughout the world. [Trademarks:Crowley Trade, 115] See : Ubiquity . * Balanced growth with sparkling beverage unit case volume up 5 percent and still beverage unit case volume up 9 percent. ATLANTA Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. -- The Coca-Cola Company today reported first quarter earnings per share of $0.54, which included a net charge primarily related to an asset write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. in the Philippines bottler, partially offset by gains on the sales of the equity interest in a Brazilian bottler and real estate in Spain. After considering items impacting comparability, earnings per share were $0.56. Earnings per share increased 15 percent on a reported basis and 14 percent after considering items impacting comparability in both the current and prior years. Earnings per share for the first quarter of 2006 were $0.47 and included a net charge of $0.02 per share. Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Neville Isdell said, "This is a strong quarter and a strong start to 2007. You can track our progress bottle by bottle around the globe. We grew both sparkling and still beverages while efficiently allocating our resources. Our focus on driving growth, building our innovation pipeline and managing our productivity is working. Our performance in the first quarter builds on the successes and results of 2006. "Our strategies are gathering momentum as we remain fully focused on all our growth drivers. The foundations for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. sustainable growth are clearly laid." President and COO (Cell Of Origin) See mobile positioning. Muhtar Kent said, "Our 6 percent unit case volume growth in the quarter, cycling 5 percent growth in the prior year, is our highest quarterly growth rate since 2002. The strength of our international business is evident, delivering 9 percent unit case volume growth, which more than offset the volume decline in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . We know what we need to do in North America and are carefully addressing the issues. It will take some time to achieve the results we desire in this key market, but we expect sequential improvement as we move into the second half of the year. Importantly, we achieved broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased growth across nearly all our key international geographies, which is a testament to our ability to manage our global geographic portfolio nimbly nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. to generate consistent returns for shareowners." (All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period.) Financial Highlights * First quarter net operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. increased 17 percent. Revenue growth reflected a 6 percent increase in concentrate sales, a 5 percent increase from structural changes resulting from acquisitions of certain bottlers, a 3 percent benefit from pricing and mix and a 3 percent positive currency impact. * Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 17 percent on a reported basis and 14 percent after considering items impacting comparability. Items impacting comparability negatively affected first quarter operating income by $10 million pre-tax in 2007 and by $45 million pre-tax in 2006. Currency benefited operating income in the quarter by 3 percent. * The Company repurchased $676 million of its stock in the first quarter and intends to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. $2.5 to $3.0 billion of its stock for the full year. * In February, the Company approved its 45th consecutive annual dividend increase, an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. increase of 10 percent over 2006. Operational Highlights (All references to unit case volume percentage changes in this section are computed based on average daily sales. "Concentrate sales" refers to volume of concentrates, syrups syrups, n a medicinal preparation in which herbal infusions or decoctions are mixed with glycerin, honey, or sugar. , beverage bases and powders sold by the Company, expressed in equivalent unit cases, and replaces the "gallon gallon: see English units of measurement. sales" concept. Group operational highlights are reported in line with the Company's operating structure as described in the Company's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filing dated April 2, 2007.) Total Company * Unit case volume increased 6 percent with nearly all of our top 22 markets delivering solid growth. * International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. delivered 9 percent unit case volume growth in the quarter, reflecting broad-based growth across essentially all key geographies. Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. continued to deliver strong growth across the region. Key emerging markets, including China, Russia, South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. , Nigeria, Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and Southern Eurasia all increased at double-digit rates. Unit case volume growth of 3 percent in Japan reflected continued improvement as the strategy to return to sustainable growth gained traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. . The European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community Group delivered strong unit case volume growth of 11 percent. Double-digit unit case volume declines in the Philippines offset the benefit of prior year brand acquisitions. * The Company continued to deliver strong growth in sparkling beverages, which increased unit case volume 5 percent in the quarter. Key brands drove the results with Trademarks Coca-Cola, Sprite and Fanta growing unit case volume 4, 9 and 7 percent, respectively, for the quarter. * In still beverages, Trademarks Dasani, Powerade and Aquarius continued their strong performance in the quarter. Trademark Dasani increased unit case volume 21 percent, cycling 22 percent growth in the prior year quarter. Trademarks Powerade and Aquarius increased unit case volume 7 percent and 17 percent, respectively, each cycling double-digit growth in the prior year quarter. Additionally, double-digit growth in Trademark Minute Maid Minute Maid is a product line of beverages, usually associated with orange juice, but now extends to soft drinks of many kinds, including Hi-C. Minute Maid was the first company to market orange juice concentrate, allowing it to be distributed nationwide and served contributed to still beverage growth in the quarter. * Globally, the Company gained or held share in sparkling beverages, juice/juice drinks, sports drinks sports drink Performance drink Sports medicine A thirst-quenching beverage used in sports-related activities, which may boost energy and/or help build muscle mass; water, sugar, salt, potassium are common to all SDs. See Hydrotherapy, Water. , ready-to-drink teas and water.
Africa
Percent ChangeFrom Prior Year
FirstQuarter
Unit Case Volume 17%
Net Revenues 12%
Operating Income 9%
* The Africa Group unit case volume increased 17 percent, led by strong growth in South Africa and Nigeria. Net revenues for the quarter increased 12 percent, reflecting a 16 percent increase in concentrate sales, positive pricing and mix, partially offset by an unfavorable double-digit currency impact. Operating income growth of 9 percent reflected the increase in net revenues and the continued investment in key marketing initiatives. * South Africa unit case volume increased 29 percent in the quarter, cycling a 3 percent decline in the prior year quarter, driven by strong marketing, the replenishment replenishment the addition of an appropriate quantity of properly prepared solution containing the correct concentration of chemicals to the developer solutions used in radiography. of trade inventory resulting from the carbon dioxide carbon dioxide, chemical compound, CO2, a colorless, odorless, tasteless gas that is about one and one-half times as dense as air under ordinary conditions of temperature and pressure. shortage in the fourth quarter of 2006 and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. weather cycling poor weather from a year ago. Nigeria unit case volume increased 18 percent, cycling an 11 percent decline in the prior year quarter, as improved execution and the cycling of a price increase from late 2005 drove results.
Eurasia
Percent ChangeFrom Prior Year
FirstQuarter
Unit Case Volume 16%
Net Revenues 24%
Operating Income 36%
* The Eurasia Group's unit case volume increased 16 percent in the quarter, cycling 15 percent growth in the prior year quarter. Double-digit unit case volume growth in Russia, Eastern Europe and Southern Eurasia along with solid performance in India drove the results. Net revenues for the quarter increased 24 percent, benefiting from a 20 percent increase in concentrate sales, positive pricing, favorable product and country mix, and a slight favorable currency impact. Operating income growth of 36 percent reflected the benefit of the net revenue increase and the continued investment in key business initiatives. * In India, unit case volume increased mid-single digits in the quarter, cycling a decline of 10 percent in the prior year quarter. Continued investment in marketing initiatives on the quality and safety of our products and focus on improved execution by the consolidated bottling operations resulted in solid growth and share gains in sparkling and still beverages.
European Union
Percent ChangeFrom Prior Year
FirstQuarter
Unit Case Volume 11%
Net Revenues 25%
Operating Income 33%
* Unit case volume in the European Union Group increased 11 percent in the quarter with all divisions reporting solid growth as marketing and innovation initiatives, as well as favorable weather and the timing of Easter, drove results. In addition, the acquisitions in 2006 of the Apollinaris and Fonti Del Vulture vulture, common name for large birds of prey of temperate and tropical regions. The Old World vultures (family Accipitridae) are allied to hawks and eagles; the more ancient American vultures and condors are of a different family (Cathartidae) with distant links to brands, in Germany and Italy respectively, contributed 3 percentage points of unit case volume growth in the quarter. Net revenues increased 25 percent, reflecting a 13 percent increase in concentrate sales, positive price and mix, and a low double-digit benefit from currency. Operating income increased 33 percent in the quarter, primarily reflecting the net revenue increase and the continued investment in key marketing initiatives, including the launch of Coca-Cola Zero Coca-Cola Zero or Coke Zero is a product of the Coca-Cola Company. It is a sugar-free variation of Coca-Cola. In the United States, where the drink was first introduced, Coke Zero is marketed as having zero calories[1] (hence the Zero in eight additional countries. * Unit case volume in Northwest Europe for the quarter increased mid-single digits, the fifth consecutive quarter of growth. Sparkling beverage unit case volume increased mid-single digits, led by Trademark Coca-Cola, which benefited from the launch of Coca-Cola Zero in France, the Netherlands and Ireland. High single-digit growth in still beverages also benefited the results. * Unit case volume in Germany increased 11 percent, cycling a 1 percent decline in the prior year quarter. The results were driven by improved marketplace execution, solid growth in Trademark Coca-Cola which benefited from the continued success of Coca-Cola Zero, increased availability in the discounter channel, the timing of Easter and favorable weather. The acquisition of Apollinaris, a premium source water brand, contributed 6 percentage points of unit case volume growth in the quarter.
Latin America
Percent ChangeFrom Prior Year
FirstQuarter
Unit Case Volume 7%
Net Revenues 19%
Operating Income 19%
* The Latin America Group delivered strong unit case volume growth of 7 percent in the quarter, cycling 7 percent growth in the prior year quarter. Solid growth in all key markets and a 7 percent growth in Trademark Coca-Cola drove the results. Net revenues increased 19 percent, reflecting a 10 percent increase in concentrate sales and positive pricing and mix benefits. Operating income increased 19 percent, reflecting the net revenue increase and the continued investment in key marketing initiatives, including the launch of Coca-Cola Zero in seven markets. * In Mexico, unit case volume increased 2 percent in the quarter, cycling 8 percent growth in the prior year quarter and driving share gains. The growth was led by Trademark Coca-Cola, which increased 3 percent for the quarter including growth from the introduction of Coca-Cola Zero. * In Brazil, unit case volume growth for the quarter was 8 percent, cycling 9 percent growth in the prior year. Solid unit case volume growth in sparkling beverages drove the results, as strong marketing and execution led to continued share gains. * In Argentina, solid growth in Trademark Coca-Cola, including growth from the introduction of Coca-Cola Zero, and bottler execution drove unit case volume growth of 13 percent in the quarter.
North America
Percent ChangeFrom Prior Year
FirstQuarter
Unit Case Volume (3%)
Net Revenues 2%
Operating Income (11%)
* Unit case volume in the North America Group declined 3 percent in the quarter. Net revenues for the quarter increased 2 percent, reflecting a 5 percent decrease in concentrate sales offset by positive pricing and a mix benefit from strong sales of energy drinks and Powerade. Operating income declined 11 percent for the quarter, reflecting the lower concentrate sales and higher input costs on the finished goods businesses. * Retail unit case volume decreased 3 percent in the quarter. Results in the quarter reflected the expected difficult sparkling beverage industry environment and the 28 percent decline in warehouse-delivered water as the system refocuses resources behind the more profitable Dasani business. The decline in warehouse-delivered water reduced Retail's unit case volume growth rate by 1 percent. * Foodservice and Hospitality unit case volume declined 1 percent in the quarter, cycling 4 percent growth in the prior year quarter. * Sparkling beverage unit case volume declined 3 percent in the quarter, reflecting the expected difficult category environment resulting from increased retail pricing. Coca-Cola Zero unit case volume continued to increase double-digits in the quarter and achieved over a 1 percentage point share in the category. Diet Coke Diet Coke (sometimes known as Diet Coca-Cola, Coca-Cola Light or Coke Light) is a sugar-free soft drink produced and distributed by The Coca-Cola Company. showed positive unit case volume growth in the quarter and gained share, while Coca-Cola Classic also gained share. The Company's portfolio of energy drinks continued to deliver strong growth and gain share in this fast growing category. * Still beverage unit case volume, excluding warehouse-delivered water, increased 4 percent in the quarter, driven by mid-single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. growth in Powerade and double-digit growth in Dasani. Both brands continued to gain category share. Warehouse-delivered chilled chill n. 1. A moderate but penetrating coldness. 2. A sensation of coldness, often accompanied by shivering and pallor of the skin. 3. juices continued to gain category share in the quarter, even though volume was negatively impacted by price increases to cover higher raw material costs. This decline was partially offset by continued unit case volume growth in Trademark Simply and Odwalla juices.
Pacific <
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Percent ChangeFrom Prior Year
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FirstQuarter
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6%
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2%
* The Pacific Group increased unit case volume 5 percent for the quarter, cycling 7 percent growth in the prior year quarter. Net revenues for the quarter increased 6 percent, reflecting a 2 percent increase in concentrate sales, positive pricing and mix, and a slight favorable currency impact. Operating income increased 2 percent for the quarter, driven by the increase in net revenues and the continued investment in key marketing initiatives. * In Japan, unit case volume increased 3 percent in the quarter. Solid growth in Trademarks Coca-Cola, Fanta, Sprite, Sokenbicha and Aquarius drove the results and led to category share gains. Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. Coffee continued to show sequential improvement and gained category share with the renewed focus on core flavors and the success of the new marketing campaign. * In China, first quarter unit case volume grew 17 percent, cycling 23 percent growth in the prior year quarter, led by double-digit growth in sparkling beverages, Minute Maid and Nestea. The strong performance across the portfolio resulted in share gains in both sparkling beverages and juices/juice drinks. * In the Philippines, unit case volume declined double-digits in the quarter. On February 22, the Company announced the closing of the transaction to acquire the 65 percent ownership interest in Coca-Cola Bottlers Philippines, Inc., previously held by San Miguel Corporation San Miguel Corporation (PSE: SMC and SMCB) is the largest publicly listed food, beverage and packaging company in the Philippines. As of 2001, its business generated 3.6 percent of the Philippines' gross domestic product and 4.5 percent of the government's tax revenue. . Initiatives are being implemented to address the business performance. As these initiatives gain traction, the Company expects unit case volume to show sequential improvement during 2007 and return to growth in 2008. [TABLE OMITTED] * The Bottling Investments Group's unit case volume increased 52 percent in the quarter, reflecting unit case volume growth across the group as well as a benefit from the acquisitions of certain bottlers. Net revenues increased 47 percent for the quarter due to the unit case volume increase, the acquisition of certain bottlers, favorable pricing and mix, and positive currency benefits. Operating income growth for the quarter reflects the focus on driving sustained financial performance through revenue increases and expense leverage. Financial Review Operating Results Net operating revenues for the quarter increased 17 percent, reflecting a 6 percent increase in concentrate sales, a 5 percent increase from structural change resulting from the acquisitions of certain bottlers, a 3 percent benefit from pricing and mix and a 3 percent currency benefit. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold increased 24 percent for the quarter, reflecting a 6 percent increase in concentrate sales, an 11 percent increase from structural change resulting from the acquisitions of certain bottlers, a 2 percent increase from currency and increases in commodity-based input and freight costs. Selling, general and administrative expenses for the quarter increased 13 percent, reflecting a 4 percent increase from structural change resulting from the acquisitions of certain bottlers, a 3 percent increase from currency, increased costs in the consolidated bottling operations to drive growth and continued investments in marketing. Operating income for the quarter increased 17 percent, reflecting the growth in gross profit, the investments in marketing and the net benefit from items impacting comparability. After considering items impacting comparability, operating income increased 14 percent. Currency increased operating income in the quarter by 3 percent. Based on current spot rates and the anticipated benefits of hedging coverage in place, the Company currently expects currency to have a small benefit on operating income for the year. Equity income declined in the quarter reflecting the write-off of assets at the Philippines bottler and the reduction in the Company's ownership positions in Coca-Cola FEMSA Coca-Cola FEMSA is the anchor bottler of Coca-Cola and its related soft drink products in much of Latin America. The company is an important part of the Coca-Cola System. Specifically, Coca-Cola FEMSA distributes about 10% of the worldwide production of Coca-Cola products. , Coca-Cola Icecek and Vonpar Refrescos S.A. (Vonpar). In the first quarter, the Company sold its 49 percent equity interest in Vonpar, a Brazilian bottling company A bottling company is a commercial enterprise whose output is the bottling of beverages for distribution. Many bottling companies are franchisees of corporations such as Coca-Cola and PepsiCo who distribute the beverage in a specific geographic region. , and recorded a gain of $71 million pre-tax. The Company completed in the quarter the purchase of the 65 percent ownership interest of the Philippines bottler previously owned by San Miguel Corporation. The Company expects the consolidation of the Philippines bottler and the implementation of programs to return the business to growth in 2008 to negatively impact 2007 earnings per share by approximately $0.02 and to have no impact in 2008. Most of the earnings impact will be reflected in the Bottling Investments Group. Effective Tax Rate The reported effective tax rate for the quarter was 27.0 percent. The rate is comprised of an underlying effective rate on operations of 23.0 percent increased by the impact of the write-off of assets, primarily by the Philippines bottler, recorded at a combined lower tax rate and the gains on the sales of the equity interest in Vonpar and real estate in Spain recorded at a combined higher tax rate. The Company currently estimates its underlying effective tax rate on operations for 2007 to be approximately 23 percent, which does not reflect the impact of significant or unusual items and discrete events, which, if and when they occur, are separately recognized in the appropriate period. New Operating Structure As previously announced, effective January 1, 2007, the Company made certain changes to its operating structure to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. geographic responsibility. This new structure resulted in the reconfiguration of two operating segments which were renamed Eurasia Group Eurasia Group is a global political risk consultancy, founded in 1998. Overview Eurasia Group has offices in New York, Washington, and London, with 100 full-time employees. and Pacific Group. The reconfiguration did not impact the other existing geographic operating segments, Bottling Investments or Corporate. Reclassified operating segment information can be found in the Company's Form 8-K filing dated April 2, 2007. Items Impacting Prior Year Results In 2006, the first quarter results included a net reduction of $0.02 per share primarily related to non-cash impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges of certain assets and investments in the bottling operations in Asia. Conference Call The Company will host a conference call with investors and analysts to discuss the first quarter 2007 results today at 8:00 a.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). The Company invites investors to listen to the live audiocast of the conference call at the Company's website, www.thecoca-colacompany.com in the "Investors" section. A replay in downloadable MP3 format will also be available within 24 hours after the audiocast on the Company's website. Further, the "Investors" section of the Company's website includes a disclosure and reconciliation of non-GAAP financial measures that may be used periodically by management when discussing the Company's financial results with investors and analysts. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] Notes: Refer to the Company's Form 8-K filing dated April 2, 2007 for more information on the changes to the Company's operating structure. (1) Intersegment revenues for the first quarter of 2007 were $10 million for Africa, $24 million for Eurasia, $205 million for European Union, $38 million for Latin America, $16 million for North America, $50 million for Pacific and $20 million for Bottling Investments. (2) Operating income (loss) and income (loss) before income taxes for the first quarter of 2007 were reduced by $2 million for Africa, $6 million for Bottling Investments and $2 million for Corporate primarily due to asset write-offs and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs. (3) Income (loss) before income taxes for the first quarter of 2007 was reduced by $73 million for Bottling Investments primarily for our proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. share of asset write-offs in the Philippines and was increased by $137 million for Corporate primarily due to gains on the sale of real estate in Spain and the sale of the equity ownership in Vonpar, a bottler in Brazil. (4) Intersegment revenues for the first quarter of 2006 were $7 million for Africa, $18 million for Eurasia, $182 million for European Union, $31 million for Latin America, $17 million for Pacific and $12 million for Bottling Investments. (5) Operating income (loss) and income (loss) before income taxes for the first quarter of 2006 were reduced by $42 million for Bottling Investments primarily related to the impairment of certain assets and investments and $3 million for Pacific due to restructuring costs. (6) Income (loss) before income taxes for the first quarter of 2006 was reduced by $9 million for Bottling Investments for our proportionate share of CCE's restructuring costs. [TABLE OMITTED] The Company reports its financial results in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U. S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 30, 2007 and March 31, 2006. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The Coca-Cola Company The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola, recognized as the world's most valuable brand, the Company markets four of the world's top five nonalcoholic non·al·co·hol·ic adj. A beverage usually containing less than 0.5 percent alcohol by volume. sparkling brands, including Diet Coke, Fanta and Sprite, and a wide range of other beverages, including diet and light beverages, waters, juices and juice drinks, teas, coffees, energy and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.4 billion servings each day. For more information about The Coca-Cola Company, please visit our website at www.thecoca-colacompany.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release may contain statements, estimates or projections that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company's historical experience and our present expectations or projections. These risks include, but are not limited to, obesity obesity, condition resulting from excessive storage of fat in the body. Obesity has been defined as a weight more than 20% above what is considered normal according to standard age, height, and weight tables, or by a complex formula known as the body mass index. concerns; scarcity Scarcity The basic economic problem which arises from people having unlimited wants while there are and always will be limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently. and quality of water; changes in the nonalcoholic beverages business environment, including changes in consumer preferences based on health and nutrition considerations and obesity concerns; shifting consumer tastes and needs, changes in lifestyles and increased consumer information; increased competition; our ability to expand our operations in emerging markets; foreign currency and interest rate fluctuations; our ability to maintain good relationships with our bottling partners; the financial condition of our bottlers; our ability to maintain good labor relations, including our ability to renew collective bargaining agreements The contractual agreement between an employer and a Labor Union that governs wages, hours, and working conditions for employees and which can be enforced against both the employer and the union for failure to comply with its terms. on satisfactory terms and avoid strikes or work stoppages; increase in the cost of energy; increase in cost, disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of supply or shortage of raw materials; changes in laws and regulations relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc beverage containers and packaging, including mandatory deposit, recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. , eco-tax and/or product stewardship Product stewardship is a concept whereby environmental protection centers around the product itself, and everyone involved in the lifespan of the product is called upon to take up responsibility to reduce its environmental impact. laws or regulations; adoption of significant additional labeling or warning requirements; unfavorable economic and political conditions in international markets, including civil unrest Unrest is a sociological phenomenon, for instance:
When a person begins a civil lawsuit, the person enters into a process called litigation. uncertainties; adverse weather conditions; our ability to maintain brand image and product quality as well as other product issues such as product recalls; changes in legal and regulatory environments; changes in accounting standards and taxation requirements; our ability to achieve overall long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. ; our ability to protect our information systems; additional impairment charges; our ability to successfully manage Company-owned bottling operations; global or regional catastrophic events; and other risks discussed in our Company's filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements. |
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