Marketing Helps Boost Coca-Cola Profit 17%
Coca-Cola Co. reported Monday that its earnings rose 17% in the second quarter as the soft-drink giant continued to capitalize on aggressive marketing tied to the Olympics and Coke’s uniquely shaped bottles.
Net income for the April-June period totaled $1.05 billion, or 42 cents per share, compared with $898 million, or 35 cents per share, for the same period last year, the company said.
Atlanta-based Coca-Cola credited much of the growth to its marketing strategy using plastic contour bottles, which resemble the original glass Coke bottles in various sizes.
The company has spent untold millions of dollars to promote itself as an Olympic sponsor. Public disclosures include a $40-million worldwide sponsorship deal, $60 million in commercial time during NBC-TV’s Olympic broadcasts, $20 million for the Olympic torch relay and $30 million for Coke’s Olympic-themed park in downtown Atlanta.
*
Los Angeles-based Hughes Electronics reported a 6% increase in second-quarter earnings on Monday, citing strong performance in its telecommunications and space segment.
The General Motors subsidiary earned $306.6 million, or 77 cents per share of GM class H common stock, in the period ending June 30, compared with $288.4 million, or 72 cents a share, during the same period a year ago.
The company attributed the second-quarter growth to strong performance in all of Hughes’ business segments, especially telecom and space.
*
At a Glance:
Host Marriott said it earned a profit in the second quarter, rebounding from a loss from continuing operations a year earlier and reporting net income of $7 million, or 3 cents a share, contrasted with a loss from continuing operations of $1 million, or 1 cent per share, in the year-ago quarter.
Three of Wall Street’s biggest brokerage firms reported sharply higher profits for the most recent quarter, helped by a boom in stock trading.
PaineWebber said second-quarter profit nearly tripled to $92.2 million, or 90 cents per share, compared with $35.4 million, or 28 cents a share, last year.
Donaldson, Lufkin & Jenrette said second-quarter profit was $97 million, or $1.53 per share, exceeding expectations. The profit was up from $42 million in the 1995 quarter. The company went public in August.
Smith Barney, a unit of Travelers Group, said second-quarter earnings grew to $229.8 million, from $135.1 million in the 1995 period.
Jacobs Engineering said third-quarter net income was $10.4 million, or 40 cents per share, compared with $8.4 million, or 33 cents a share, for the year-ago quarter.
Genentech said second-quarter earnings fell 42% to $21.7 million, or 18 cents a share, down from $37.2 million, or 31 cents per share, in the year-earlier quarter.
