Business: Coca-Cola Shares Drop As Global Sales Decline

Coca-Cola Co reported fourth-quarter revenue slightly below analysts' estimates, hurt by a weaker-than-expected performance in Europe.

The world's largest soft drink maker, with brands such as Sprite, Fanta and Minute Maid, on Tuesday said revenue rose 4 percent to $11.46 billion. Analysts were expecting $11.53 billion, according to Thomson Reuters I/B/E/S.

Worldwide sales volume climbed 3 percent, but volume in Europe fell 5 percent. JPMorgan analyst John Faucher, for example, was expecting volume to rise 3.5 percent, with a decline of just 1 percent in Europe.

Volume fell 5 percent in Germany, more than some analysts had expected. Volume declined 4 percent in China, also weaker than some expected, with the company blaming issues including the economic slowdown.

Coca-Cola's business is being hampered by ongoing issues in Europe's economy, which is dampening consumer confidence and sparking some aggressive price competition on drinks.

Coke is also seeing tougher competition from PepsiCo Inc., which is working hard to improve its North American beverage business. Pepsi has increased marketing spending with a focus on core brands like Pepsi-Cola, and analysts say the renewed effort is working.

In North America, where top rival PepsiCo Inc. (PEP) is trying to upgrade its drinks business with increased spending, Coca-Cola posted a 1% increase in sales volume. The company said that its market share as measured by volume and value continues to increase. Reports NASDAQ.

PepsiCo is due to report quarterly earnings on Thursday.

Coke said fourth-quarter net income was $1.87 billion, or 41 cents per share, up from $1.66 billion, or 36 cents per share, a year earlier.

Excluding restructuring charges and other one-time items, earnings were 45 cents per share, topping analysts' average estimate by a penny.

Coca-Cola shares were down 0.5 percent at $38.40 in premarket trading. However, gross margin fell to 59.6% from 60.1%, partly due to a 4% increase in concentrate sales. ~ NASDAQ 

Credits to:  ~( REUTERS)

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