DOW JONES NEWSWIRES
Coca-Cola Enterprises Inc. (CCE) swung to a fourth-quarter net
loss on a $2.3 billion write-down on the value of North American
franchise licenses as revenue and margins fell for Coca-Cola Co.'s
(KO) biggest bottler.
Soda bottlers have struggled with weakened volumes as North
American turn to other drinks, including bottled water and
vitamin-infused beverages. The industry is seeing some benefit as
commodity costs moderate from last summer's high.
Coca-Cola Enterprises posted a fourth-quarter net loss of $1.45
billion, or $2.99 a share, compared with year-earlier net income of
$158 million, or 32 cents a share. Excluding items such as the
write-down, caused in part by CCE's tumbling stock price, earnings
fell to 22 cents from 29 cents.
Revenue decreased 1.2% to $5.24 billion as higher prices nearly
offset a 5% volume drop.
Analysts polled by Thomson Reuters expected earnings of 19 cents
a share on revenue of $5.23 billion.
Gross margin edged down to 37% from 37.7%.
North American volume slumped 7% amid a 9.5% price increase
while European volume rose 1.5% while prices per case rose a more
modest 2.5%.
Coca-Cola Enterprises, which reiterated its 2009 earnings
forecast, sees volume falling again this year in North America, but
the region's revenue should grow by the mid-single digits on a
percentage basis because of the price hikes. The same revenue
increase is seen for Europe as volume will grow "modestly."
Coca-Cola Enterprises in December announced a restructuring
aimed at boosting operating profit by $150 million by 2011 for the
company and Coca-Cola. The moves will include efforts to better
coordinate capacity and transportation planning with concentrate
producer Coca-Cola.
Coca-Cola Enterprises shares closed Tuesday at $11.95 and there
was no premarket trading. The stock has lost more than half its
value since March.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com