Coca-Cola said today its quarterly profit rose a better-than-expected 13 per cent on strong international sales, the weak dollar and a lower tax rate.
The world's largest beverage company, whose shares rose more than 1.7 per cent in early trading, said net income rose to $1.65 billion, or 71 cents per share, for the third quarter that ended Sept. 28, up from $1.46 billion, or 62 cents per share, a year earlier.
Analysts on average were expecting 68 cents per share, according to Reuters Estimates.
A 3 cent-per-share restructuring charge in the quarter was offset by a 3 cent-per-share gain, mostly from the sale of a portion of its Coca-Cola Amatil holdings, the company said.
Coke said it lowered its expected full-year tax rate to 22 per cent from 22.5 per cent, providing a 1 cent-per-share benefit in the quarter. The company forecast that its tax rate for 2008 would be between 22 per cent and 22.5 per cent.
Net operating revenue rose 19 per cent to $7.69 billion, with contributions of 8 percentage points from acquisitions of certain bottlers, 6 points from higher sales of beverage concentrate, 4 points from the weak dollar, and 1 point from sales increases and a greater ratio of more expensive products.
The weak dollar boosts the value of sales in other currencies when they are converted to dollars for inclusion on the company's income statement.
Worldwide case volume rose 6 per cent, with increases of 4 percent for carbonated drinks and 14 per cent for non-carbonated beverages, such as Powerade, Dasani bottled water and Minute Maid juice.
Volume rose 1 per cent in North America, the first quarter of growth here in five quarters. Volume of carbonated drinks such as Coca-Cola and Fanta fell 2 per cent, but popularity of the newly launched Coca-Cola Zero helped it gain market share.