Coca-Cola today reported a quarterly earning of $863 million that beat Wall Street expectations. But the soft drink firm lowered key growth targets for 2001 and beyond due to tougher economic conditions.
Atlanta-based Coca-Cola, facing increased competition from arch-rival PepsiCo in North America, said it had reduced its estimate for unit case volume growth to a range of 5-6 per cent for 2001 from a previous target of 6-7 per cent.
The company also lowered its long-term annual volume growth target to 5-6 per cent from a previous 7-8 per cent and cut its long-term annual earnings per share growth target to 11-12 per cent from a previous 15 per cent.
Coke said it was comfortable with current earnings estimates for 2001.
In first quarter 2001, Coca-Cola's volumes grew by 4 per cent, spurred by a 10 per cent growth in the Asia-Pacific region and a 4 per cent rise in Europe and Eurasia. Volumes in North America, Coca-Cola's largest market, rose 1 per cent.
The company earned $863 million, or 35 cents, in the first quarter, compared with a loss of $58 million, or 2 cents, in the same period last year.
Analysts on average expected Coca-Cola to earn 33 cents a share, according to Thomson Financial/First Call, which tracks consensus data.