Printer Friendly

THE COCA-COLA COMPANY ANNOUNCES STRONG INCREASES IN UNIT CASE VOLUME AND EARNINGS PER SHARE IN THE SECOND QUARTER

 -- Worldwide unit case volume growth accelerated to more than
 6 percent in the second quarter.
 -- Earnings per share increased 21 percent in the second quarter,
 following a 21 percent increase in the first quarter and on top
 of an 18 percent increase for the full year 1992.
 ATLANTA, July 15 /PRNewswire/ -- The Coca-Cola Company (NYSE: KO) announced today that earnings per share increased 21 percent in the second quarter and net income available to share owners rose 20 percent.
 Second quarter earnings were $0.52 per share, up from $0.43 in the same period a year ago, on net income available to share owners of $678 million, up from $565 million. For the year-to-date, earnings per share increased 21 percent to $0.87, while net income available to share owners advanced 19 percent to $1.1 billion, excluding nonrecurring items in 1992.
 "The strong momentum built in the first quarter has carried over into the second quarter with even stronger volume gains," said Roberto C. Goizueta, chairman, Board of Directors, and chief executive officer. "We have been able to maintain volume growth and achieve solid earnings increases despite the difficult global economic environment of the last two and one-half years. However, during the last three quarters, we have been experiencing increasingly accelerating volume growth, which augurs well for the remainder of 1993 and beyond," Mr. Goizueta continued. "Unit case volume growth is rebounding nicely in most developed markets while recently opened emerging markets are experiencing explosive growth. In emerging markets, like China, Indonesia and East Central Europe, we have only scratched the surface of the consumption potential of huge population centers."
 International unit case volume increased 7 percent and gallon shipments grew 4 percent in the second quarter. Unit case volume in the Company's North American soft drink operations advanced 5 percent, fueled by a 6 percent increase in the United States. North American gallon shipments of soft drink concentrates and syrups grew 5 percent. Worldwide unit case volume advanced more than 6 percent and gallon shipments grew 5 percent in the second quarter. Operating income in the second quarter jumped 15 percent, fueled by volume growth and margin expansion. Foreign currency translation had little impact on second quarter results.


Bottling Investments
 The Company sold its interests in certain bottling properties, including a bottling operation in the Netherlands, to Coca-Cola Enterprises in the second quarter. The sale resulted in an after-tax gain of $11 million or approximately $0.01 per common share. In addition, the Company completed the previously announced investment of $195 million to acquire a 30 percent interest in a joint venture with Fomento Economico Mexicano, S.A. de C.V. (FEMSA) which will operate soft drink bottling properties in the Valley of Mexico and Mexico's southeast region. In line with its well established strategy, the Company plans to continue its program of investing in and subsequently reselling ownership positions in bottling operations in order to strengthen the distribution system. In the process, the Company participates in the resulting increase in value on investments held for a meaningful period of time. Since 1981, the Company has invested in excess of $3 billion in more than 50 bottling and canning operations around the world which, when taken together, account for approximately 37 percent of the Company's total worldwide volume.


International Operations
 Unit case volume increased in each major geographic region in the second quarter, led by a 25 percent increase in the Northeast Europe/Middle East Group, which came on top of 17 percent growth in the prior year. This group continues to benefit from rapid expansion into nascent soft drink markets. Unit case volume in the Nordic and Northern Eurasia Division, the Middle East Division and the East Central European Division advanced 21 percent, 23 percent and 27 percent, respectively. Gallon shipments of concentrates and syrups increased 29 percent in the second quarter in the Northeast Europe/Middle East Group. For the year- to-date, unit case volume and gallon shipments increased 23 percent and 24 percent, respectively.
 Unit case volume in the Pacific Group grew 8 percent in the second quarter, driven by a 28 percent increase in China, a 17 percent increase in Australia and a 10 percent gain in Japan. Unit case volume fell 5 percent in Korea due to a difficult economic environment. The Coca-Cola system recently announced plans to invest an additional $150 million in China through 1995, which will bring the total investment in this rapidly growing country to $250 million. Gallon shipments of concentrates and syrups in the Pacific Group decreased 1 percent in the second quarter due to bottler inventory depletion. For the first six months of the year, unit case volume grew 5 percent and gallon shipments increased 1 percent.
 Unit case volume in the Africa Group increased 12 percent in the quarter, led by a 35 percent increase in Nigeria as a result of increased product availability and promotions. Gallon shipments in the Africa Group for the quarter declined 6 percent versus the prior year increase of 16 percent. Unit case volume increased 6 percent and gallon shipments declined 3 percent for the first six months of the year.
 In the Latin America Group, unit case volume grew 4 percent led by a 13 percent gain in Chile and 8 percent growth in Mexico, partially offset by a 2 percent decline in Brazil. The decline in Brazil was in line with expectations and continues to reflect improvement versus the weak volume trends of the prior year. Unit case volume in Argentina increased 2 percent following a 37 percent gain in the second quarter of 1992. Gallon shipments in Latin America increased 6 percent in the second quarter of 1993. For the year-to-date, unit case volume and gallon shipments grew 4 percent and 7 percent, respectively.
 In the European Community Group, unit case volume increased 3 percent in the second quarter, due to a difficult comparison to 14 percent growth in the prior year. In Great Britain and Germany, two key European markets, unit case volume grew 10 percent and 4 percent, respectively. Unit case volume declined 3 percent in Spain due to difficult economic conditions and 1 percent in France due to comparison against a 25 percent gain last year. Gallon shipments in the European Community Group grew 3 percent in the second quarter. For the year-to- date, unit case volume and gallon shipments grew 4 percent in the European Community Group.
 Unit volume of fountain products sold internationally increased 17 percent, year-to-date.


North American Operations
 In North America, the strong volume gain resulted partly from sales of new products and continued focus on programs designed to increase customer volume and profit. "The six percent increase in unit case volume in the United States was the largest increase in nine quarters," said Mr. Goizueta. "We are very pleased with the strong performance of our flagship business versus all competitors."
 At Coca-Cola Foods, increased marketing and aggressive pricing resulted in a 15 percent overall unit volume increase in the second quarter. Operating income increased strongly as Coca-Cola Foods widened its lead in the orange juice category. For the first six months of the year, unit volume grew 23 percent. "Coca-Cola Foods performed superbly during the quarter with exceptional unit volume growth across all major product lines," said Mr. Goizueta.
 Under its share repurchase programs, the Company purchased approximately 6 million shares of its common stock in the second quarter and 8 million shares for the year-to-date. The Company is still in the early stages of a program to acquire up to 100 million shares through the year 2000.
 THE COCA-COLA COMPANY AND SUBSIDIARIES
 (In millions, except per share data)
 Second Quarter 1993 1992 Pct. chg.
 Net operating revenues $3,899 $3,550 10
 Cost of goods sold 1,464 1,373 7
 Gross profit 2,435 2,177 12
 Selling, administrative and
 general expenses 1,476 1,345 10
 Operating income 959 832 15
 Interest income 32 33 (3)
 Interest expense 40 44 (9)
 Equity income 39 15 ---
 Other deductions - net 10 12 ---
 Income before income taxes 980 824 19
 Income taxes 302 259 17
 Net income $ 678 $ 565 20
 Net income per share(a) $ .52 $ .43 21
 Average shares outstanding(a) 1,303 1,318 (1)
 (a) Net income per share and average shares outstanding have been adjusted to reflect a two-for-one stock split, effective May 1, 1992.
 Six Months 1993 1992 Pct. chg.
 Net operating revenues $6,955 $6,322 10
 Cost of goods sold 2,557 2,405 6
 Gross profit 4,398 3,917 12
 Selling, administrative and
 general expenses 2,762 2,511 10
 Operating income 1,636 1,406 16
 Interest income 67 73 (8)
 Interest expense 86 86 ---
 Equity income 68 23 ---
 Other deductions - net 49 29 ---
 Income before income taxes and
 change in accounting principle 1,636 1,387 18
 Income taxes 504 436 16
 Income before change in
 accounting principle 1,132 951 19
 Catch-up adjustment for change in accounting
 for postretirement benefits other than pensions
 Consolidated operations --- (146) ---
 Equity investments --- (73) ---
 Net income $1,132 $ 732 ---
 Income per share:
 Before change in accounting
 principle $.87 $.72 21
 Catch-up adjustment for change in accounting
 for postretirement benefits other than pensions
 Consolidated operations --- (.11) ---
 Equity investments --- (.06) ---
 Net income per share(a) $.87 $.55 ---
 Average shares outstanding(a) 1,304 1,322 (1)
 (a) Net income per share and average shares outstanding have been adjusted to reflect a two-for-one stock split, effective May 1, 1992.
 -0- 7/15/93
 /CONTACT: Linda Peek of The Coca-Cola Company, 404-676-4848/
 (KO)


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

BR-BN -- AT001 -- 1756 07/15/93 08:08 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:Jul 15, 1993
Words:1616
Previous Article:MK TO BUILD HIGH-TECHNOLOGY BRAKE PLANT FOR KELSEY-HAYES IN THE NETHERLANDS
Next Article:THE NATION'S ONLY MINORITY-OWNED MANUFACTURER OF PAPER CUPS OPENS ITS DOORS WITH FIRST PURCHASE AGREEMENT FROM NATIONAL FOOD SERVICE GIANT
Topics:


Related Articles
THE COCA-COLA COMPANY ANNOUNCES 23 PERCENT INCREASE IN FOURTH QUARTER EARNINGS PER SHARE AND PLANS FOR A TWO-FOR-ONE STOCK SPLIT
THE COCA-COLA COMPANY REPORTS 22 PERCENT INCREASE IN SECOND QUARTER EARNINGS PER SHARE
THE COCA-COLA COMPANY REPORTS 21 PERCENT INCREASE IN THIRD QUARTER EARNINGS PER SHARE ON 11 PERCENT GAIN IN REVENUES
THE COCA-COLA COMPANY REPORTS 21 PERCENT INCREASE IN THIRD QUARTER EARNINGS PER SHARE ON 11 PERCENT GAIN IN REVENUES
THE COCA-COLA COMPANY ANNOUNCES STRONG EARNINGS GROWTH AND ACCELERATING UNIT VOLUME
THE COCA-COLA COMPANY REPORTS 21 PERCENT JUMP IN FIRST QUARTER EARNINGS PER SHARE
THE COCA-COLA COMPANY ANNOUNCES STRONG FIRST QUARTER INCREASES IN WORLDWIDE UNIT CASE VOLUME AND EARNINGS PER SHARE
THE COCA-COLA COMPANY ANNOUNCES STRONG FIRST QUARTER INCREASES IN WORLDWIDE UNIT CASE VOLUME AND EARNINGS PER SHARE
THE COCA-COLA COMPANY ANNOUNCES STRONG THIRD-QUARTER INCREASES IN UNIT CASE VOLUME AND EARNINGS PER SHARE
THE COCA-COLA COMPANY ANNOUNCES RECORD NET INCOME OF MORE THAN $2.5 BILLION AND STRONG FOURTH-QUARTER AND FULL YEAR INCREASES IN UNIT CASE VOLUME AND...

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters