Coca-Cola Q3 Profit Falls, Announces Actions To Reinvigorate Growth
The Coca-cola Co. (KO) Tuesday said third-quarter net income attributable to shareowners of the company fell to $2.114 billion from $2.447 billion last year. Earnings per share dropped to $0.48 from $0.54.
Comparable earnings per share were $0.53, even with the prior year quarter. On average, 20 analysts polled by Thomson Reuters expected earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items. Net operating revenues were nearly unchanged at $12 billion. Analysts expected revenues of $12.12 billion. Excluding the impact of structural changes, comparable currency neutral net revenues grew 1 percent in the quarter.
Looking ahead, the company said it expects to be below its long-term earnings per share growth target for 2014. Based on the current outlook, it does not expect comparable currency neutral earnings per share growth in 2015 to be significantly different from 2014.
Separately, the company announced actions to reinvigorate growth. It plans to maintain its long-term high single-digit earnings per share growth target while adjusting its net revenue target to mid single-digit growth and replacing its operating income metric with profit before tax.
The company will streamline and simplify its operating model to speed decision making and enhance local market focus.
Coca-Cola will expand its current successful productivity program by targeting annualized savings of $3 billion per year by 2019.(dpa)
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