Coke bottler warns
Coca-Cola Enterprises said fiscal 2001 earnings will miss Street by 8 cents a share
December 7, 2000: 8:57 p.m. ET
NEW YORK (Reuters) - Coca-Cola Enterprises Inc. on Thursday said its fiscal 2001 earnings will be lower than Wall Street expectations and could be further dampened by continued strength in the British currency against the Euro.
The Atlanta-based Coke bottler said it now expects fiscal 2001 diluted earnings per share to be 60 cents, excluding the potential effects of currency translations.
Wall Street analysts on average had been expecting the company to post a profit of 68 cents a share for fiscal 2001, according to research firm First Call/Thomson Financial.
Coca-Cola Enterprises (CCE: Research, Estimates), which makes and distributes bottled and canned products for The Coca-Cola Company, said currency translation rates are currently below the average rates experienced by the company in 2000, and should they remain at current levels, diluted earnings in 2001 could be reduced by an additional 1 to 2 cents per share.
Shares of Coca-Cola Enterprises rose 2.5 percent on Thursday, or 56 cents, to close at $22.94 on the New York Stock Exchange.
"The ongoing strength of the British pound sterling versus the Euro is expected to continue affecting market conditions in Great Britain, reducing the company's overall cash operating profit growth rate for 2001," Coca-Cola President and Chief Operating Officer John Alm said in a statement.
Alm also said that as the company continues to implement its current strategies to address retail price issues in 2001, Coca-Cola's performance will be below the long-term cash operating profit growth objective of 8 percent to 10 percent.
Fiscal 2000 diluted earnings per share are expected to be 50 cents, in line with analysts' current First Call estimates.
For the fourth quarter, Coca-Cola said its North American volume growth will be positive but still lower than previous guidance, hurt by softness in its Canadian territories.
Still, volume growth in the company's U.S. territories is expected to be 1 percent, the company said.
European volume is expected to grow in the range of 4 percent to 5 percent in the fourth quarter, bringing total company volume growth to more than 1 percent.
"We are encouraged by continued volume growth in the United States throughout the fourth quarter and are confident this volume growth trend will accelerate in 2001," Alm said.
"Although North American volume growth in 2000 remained soft, we believe volume trends will strengthen in 2001 as we roll out improved national and local marketing programs, implement more moderate price increases, and introduce several new packages and brands," Alm said.
For 2001, the company said it expects North American physical can and bottle volume to grow 3 percent to 4 percent, and volume in its European territories to improve by 4 percent to 6 percent.
Fiscal 2001 cash operating profit growth is expected to be in the range of 6 percent to 7 percent, reaching $2.525 billion to $2.550 billion. |
