Coca-Cola Profit in Line, Case Volume Climbs

Coca-Cola reported a lower quarterly profit on Tuesday that met Wall Street estimates, as North American sales volume fell 2 percent.

Net income was $1.35 billion, or 58 cents per share, in the first quarter ended on April 3, down from $1.5 billion, or 64 cents per share, a year earlier.

Excluding items, the world's biggest soft-drink maker earned 65 cents per share, meeting the analysts' average forecast, according to Reuters Estimates.

Operating revenue fell 2.8 percent to $7.17 billion as sales by volume rose 2 percent.

Jeff Chiu / AP

Volume in international markets, which make up the majority of Coke's sales, rose 3 percent, as strength in emerging markets such as India and China offset a 2 percent decline in Central and Eastern Europe.

That is a slower rate of growth compared to last year, when international volume rose 5 percent to 7 percent range each quarter.

The company does not provide earnings forecasts, but has said it was looking to meet its long-term target of 3 percent to 4 percent volume growth and high single-digit earnings-per-share growth this year.

Coke's results came a day after archrival PepsiCo reported a higher-than-expected profit and announced an unsolicited takeover bid for its two largest bottlers Pepsi Bottling Group and PepsiAmericas.

Pepsi's move resurrected speculation that Coke might take over Coca-Cola Enterprises , its largest bottler.

But the company has repeatedly said it had no intention of doing so, and did not mention it in its earnings release.

Coca-Cola shares were down 1.2 percent at $43.82 in trading before the market opened.

Copyright 2009 Reuters. Click for restrictions.