Originally published February 27 2005
Huge drop in Coca-Cola sales reported for fourth quarter; weak North America sales blamed
by Mike Adams, the Health Ranger, NaturalNews Editor
Coca-Cola reported a 36% drop in earnings this past quarter. The drop is blamed on poor soda sales in North America. Coca-Cola is confident that they will improve earnings by launching an energy drink and a line of flavored bottled waters.
Coca-Cola Enterprises Inc., the world's largest bottler of Coca-Cola drinks, on Thursday reported a 36 percent drop in quarterly earnings due largely to weak soft drink sales in North America, sending its shares down more than 4 percent.
Coke Enterprises, which is about 37 percent owned by Coca-Cola Co., blamed lower sales of regular soft drinks, which include the flagship Coca-Cola Classic brand, for the poor performance.
Fourth-quarter net earnings fell to $82 million, or 17 cents per share, compared with $128 million, or 28 cents per share, a year earlier.
Analysts on average had forecast a profit of 13 cents per share on sales of $4.36 billion, according to Reuters Estimates.
The quarterly results capped a difficult year for the company, which was hurt by poor weather and economic weakness in its European markets and a continuing shift by consumers away from sugary soft drinks in North America.
Coke Enterprises executives expressed disappointment at the overall performance in 2004, but said the company had taken steps to get its business back on track in North America and Europe.
"We made significant progress in key areas of our operations that leave our business stronger and more capable of creating sustainable, profitable growth," Coke Enterprises Chairman Lowry Kline said.
The company is hoping that the rollout of a flurry of new drinks, including the Full Throttle energy drink, Coca-Cola with Lime and Dasani flavored waters, will help reignite sales this year.
Boosting demand for the slumping Coca-Cola Classic brand and other regular soft drinks also will remain a priority.
The weakness was partially offset through higher prices for soft drinks, juices, bottled waters and other beverages.
In the past, the company sometimes sacrificed price hikes in order to protect unit case sales and market share.
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