New York - Soft drink giant Coca-Cola said Thursday that profits fell 23 per cent in the second quarter on writedowns by its largest bottler. Net income was 1.4 billion dollars, or 61 cents per share, in the quarter, dropping from 1.9 billion dollars, or 80 cents a share, in the year-earlier period, the Atlanta, Georgia-based firm said. Revenues rose 17 per cent on strong international sales to 9 billion dollars.
The bottler, Coca-Cola Enterprises Inc, reported writedowns of 5.3 billion dollars as demand for soda and bottled water declined in a weaker US economy. Coca-Cola bottlers are independent companies, but the Coca-Cola Company holds a 35 per cent share in Coca-Cola Enterprises.
Without the writedown, Coca-Cola profits rose 19 per cent, or 1.01 dollars per share.
Sales volume remained stagnant in North America, but increased worldwide.
"Our results were once again led by our international operations, which delivered 5 per cent unit case volume growth, and we maintained volume in North America despite significant challenges," new Chief Executive Muhtar Kent said in a statement, citing particularly strong sales in Latin America, as well as China, India, Eastern Europe, Asia and the Middle East.
