ATLANTA (AP) — Coca-Cola Co.’s fourth-quarter net income
dropped 71 percent, weighed down by restructuring charges and a
difficult comparison with last year’s fourth quarter, when the beverage
maker had a hefty benefit from buying its bottlers.
But the
Atlanta company said Tuesday its adjusted results topped Wall Street’s
expectations as it sold more drinks in the U.S. and abroad, particularly
in emerging markets.
"Even as we believe that global market
volatility will continue in the near term, the breadth of our global
footprint and the strength of our brands create a resilient business
that was built for times like these," said CEO Muhtar Kent in a
statement.
Its stock added 71 cents to $68.74 in premarket trading.
Coke
also said it will start a cost-cutting program in 2012 to save $550
million to $650 million annually by 2015 in part to help offset
continued high commodity costs.
Coca-Cola, whose brands include
Sprite and Minute Maid, earned $1.65 billion, or 72 cents per share, for
the period ended Dec. 31. That’s down sharply from $5.77 billion, or
$2.46 per share, a year earlier. But a year ago, the company had a
one-time net gain of $1.74 per share, mainly related to buying a
bottler’s North American operations.
Removing restructuring
charges and other items, earnings were 79 cents per share. Analysts
forecast 77 cents for the company, according to Fact Set.
Revenue
increased 5 percent to $11.04 billion. It was helped by higher prices,
strength overseas and solid results from the Coca-Cola brand, juices and
teas. The figure just topped Wall Street’s $11 billion estimate.
Coca-Cola
sold 3 percent more of its drinks during the quarter, including a 1
percent gain in Europe and North America and a 4 percent gain in Eurasia
and Africa and Latin America.
Coca-Cola, which has more than 500
brands including Fanta, Sprite, Dasani and Minute Maid, has weathered
the downturn by spending more on advertising, new products and plants.
The company, like many, also has turned overseas for growth,
particularly emerging markets like India and China. And in North
America, it is raising prices and offering smaller package sizes.
For
the year, net income fell 27 percent to $8.57 billion, or $3.69 per
share. That compares with $11.81 billion or $5.06 per share last year.
Revenue rose 33 percent to $46.54 billion from $35.12 billion.
Global volume grew 5 percent during the year, helped by strength in emerging markets
such as Latin America.
Coke’s chief rival, Pepsico Inc., reports results Thursday.
Copyright 2012 The Associated Press.