Coca-Cola cuts long-term earnings targets

Coca-Cola announced today it was lowering key long-term earnings and sales targets.

Coca-Cola announced today it was lowering key long-term earnings and sales targets.

The world's largest soft drink company, stung by a prolonged downturn in North America and other markets, said it expected annual earnings per share growth in the high single digits in percentage terms and annual unit case volume growth of between 3 per cent and 4 per cent over the long term.

The company's previous long-term targets were 11 per cent to 12 per cent EPS growth and 5 per cent to 6 per cent volume growth.

Coca-Cola had been under pressure from many Wall Street analysts to trim its guidance to a more realistic figure in light of the tough conditions facing the company in many of its more than 200 markets around the world.

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The Atlanta-based firm earned $1.77 per share in 2003, marginally higher than the $1.64 per share it made in 1997.

But earning per share dived 22 per cent in the third quarter of 2004. It left its earnings guidance for 2004 unchanged at a range of between $1.88 per share and $1.90 per share, including special items.