(RTTNews) - Non-alcoholic beverages company Coca-Cola Enterprises Inc. (CCE: News ) reported Wednesday a higher profit for its third quarter, as lower costs offset a 3% drop in operating revenues due to lower volume. Comparable earnings per share for the quarter topped market projections, while top line missed Street view. Further, the Atlanta, Georgia-based company, which bottles and distributes soft drinks, lifted its fiscal 2009 comparable earnings forecast.

Third-quarter net income was $247 million or $0.50 per share, compared to $214 million or $0.44 per share in the year-ago quarter.

The latest quarter results included net unfavorable items totaling $7 million or $0.01 per share, as net mark-to-market commodity hedges of $0.03 per share were more than offset by restructuring charges of $0.04 per share. Prior year results included net unfavorable items of $12 million or $0.02 per share.

Excluding items, comparable net income for the quarter was $254 million or $0.51 per share, higher than prior year's $226 million or $0.46 per share. Comparable earnings per share for the latest quarter included a negative currency impact of about $0.04 per share.

On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Net operating revenues for the quarter dropped 3% to $5.57 billion from $5.74 billion in the prior-year quarter, and missed seven Wall Street analysts' consensus revenue estimate of $5.72 billion. Excluding a negative currency impact of 3%, total revenues were flat with previous year.
The company, which sells approximately 80% of Coca-Cola Co.'s (KO) bottle and can volume in North America, pointed out that consolidated third-quarter results included a decline of 6.5% in comparable physical case bottle and can volume. Net pricing per case increased 7.5%, and cost of sales per case increased 3.5%.

Gross profit rose 2.5% to $2.17 billion from last year's $2.12 billion, as the impact of lower revenues were offset by 6% drop in cost of sales to $3.40 billion. Operating income was $464 million, higher than $430 million a year ago, and comparable operating income grew 5% to $471 million from $449 million in the previous year.

On a geographical basis, North American revenue declined 4% year-over-year to $3.83 billion, while divisional comparable operating income rose 9%, reflecting the benefits of price/package architecture, efficiency initiatives, and year-over-year declines in some commodity prices. Third-quarter volume declined 10% in the region, impacted by the Olympic-related promotional volume growth hurdle created in the same quarter a year ago and the shift of 4th of July holiday volume into the second quarter. Pricing per case grew 7.5% and cost of sales per case increased 3.5%.

To receive FREE breaking news email alerts for Coca-Cola Enterprises Inc and others in your portfolio

 1   2   3   4   Next Page