Coca-Cola Profit Rises 8.6%

Coca-Cola Co. said Wednesday its first-quarter earnings rose 8.6%, helped by price increases that offset the typical slower sales of the cold-weather quarter.

The world’s largest beverage maker reported net income of $857 million, or 34 cents a diluted share, up from $789 million, or 31 cents a year earlier. The Atlanta-based company was expected to earn 34 cents, the average estimate of analysts.

The company, under Chief Executive Douglas Ivester, is building sales around the globe by working with its bottlers to add coolers and new vending machines in growing markets.

Coca-Cola’s global market share is now 49.7% versus 20.3% for rival PepsiCo Inc.

“We’re now selling a billion servings of our products every day, certainly a milestone for us,” said Ivester. “However, with the growth we’re seeing and the potential opportunities ahead for us, we are even more excited about the future.”

Ivester became CEO in October, after Roberto C. Goizueta died of complications from lung cancer.

Revenue rose 7.7% to $4.46 billion from $4.14 billion. The company said the growth reflected increased shipments and selective price increases, partly offset by the stronger dollar, which cut into overseas profit.

Coca-Cola said it saw a 14% increase in worldwide unit-case volume--a key industry indicator that is defined as sales of 24 eight-ounce servings.

The earnings report didn’t help Coca-Cola’s shares, which fell $1.13 to close at $76.69 on the New York Stock Exchange.

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Northrop Grumman Corp.’s first-quarter earnings rose 25% before a charge related to its proposed sale to Lockheed Martin Corp. resulted in a loss for the quarter.

The Los Angeles-based aerospace company said profit before the charge rose to $105 million, or $1.52 a diluted share, from $84 million, or $1.25, in the year earlier period. Per-share results exceeded the $1.44 average estimate of seven analysts.

Sales fell 4.9% to $2.01 billion from $2.12 billion, partly because it sold its Grumman Allied Industries subsidiary.

As Northrop faces a government lawsuit over its proposed $12-billion combination with Bethesda, Md.-based Lockheed, Northrop said it expects 1998 earnings before charges to beat the $6.99-a-share analysts’ estimate.

Northrop shares fell $1.31 to close at $106.81 on the NYSE.

At a Glance:

* PG&E; Corp., parent of Pacific Gas & Electric Co., said first-quarter earnings fell 14% to $139 million, or 36 cents a share, from $173 million, or 42 cents, a year ago. Operating revenue rose 29% to $4.5 billion. PG&E; blamed the lower profit on a lower authorized rate of return for its regulated utility unit and the lost revenue from a refueling outage at the utility’s Diablo Canyon nuclear power plant.

* Guidant Corp., a maker of medical devices, said first-quarter profit more than doubled, to $94.1 million, or 62 cents a diluted share, from $38.6 million, or 26 cents, a year ago. Revenue climbed 77% to $470.3 million, on strong sales of stents, devices used to hold open once-clogged arteries.

* Allergan Inc. profit rose 29% to $23 million, or 35 cents a diluted share, in the first quarter from $17.8 million, or 27 cents, a year ago. Revenue at the Irvine-based drug maker and eye-care company rose 5% to $269.3 million.

* Linens ‘n Things Inc. said first-quarter earnings rose more than fourfold to $1.48 million, or 7 cents a diluted share, from $352,000, or 2 cents, a year ago. The retailer of household items said sales climbed 21% to $218 million, with same-store sales up 7.5%. The company also said it plans a 2-for-1 stock split.

* The New York Stock Exchange said first-quarter profit jumped 49% to $33.3 million from $22.4 million a year earlier, as revenue jumped 20% to $172.7 million. The exchange, a private association, said 52 companies joined the list of NYSE-traded stocks in the quarter. Average daily trading volume rose 22% to 626.4 million shares.

* Owens Corning’s first-quarter profit fell 86% to $6 million, or 12 cents a diluted share, from $42 million, or 76 cents, as prices fell for its fiberglass building insulation. Sales rose 30% to $1.4 billion.

* Goodyear Tire & Rubber Co.’s first-quarter profit rose 8% to $173.6 million, or $1.09 a diluted share, from $160.2 million, or $1.01, a year ago, on lower raw material costs and continued cost-cutting. The tire maker’s revenue fell 4% to $3.09 billion.

* Fruit of the Loom Inc. said first-quarter earnings rose 38% to $31.2 million, or 43 cents a diluted share, from $22.6 million, or 29 cents, a year ago, while sales fell 10% to $457.2 million. The maker of underwear and active wear also said it will close a plant in Kentucky, laying off 812 employees, in a continued cost-cutting plan.

* Black & Decker Corp. said profit from operations rose 23% to $32.4 million, or 33 cents a diluted share, from $26.3 million, or 27 cents, a year ago. The maker of tools and small appliances said sales fell 1% to $1.01 billion.

* Bestfoods, whose brands include Skippy peanut butter, said its first-quarter earnings rose 14% to $133.4 million, or 44 cents a diluted share, from $117.5 million, or 39 cents, a year ago. Sales fell 1% to $2.12 billion.

* McGraw-Hill Cos.’ first-quarter earnings rose 34% to $20.1 million, or 20 cents a diluted share, from $15 million, or 15 cents, a year ago, as stronger financial services results offset a decline at the division that operates Business Week magazine. Revenue rose 8% to $703.4 million.

* Media General posted a first-quarter profit of $12.7 million, or 47 cents per share, compared with a loss of $54.8 million, or $2.06 per share, a year ago, due to acquisition costs. Revenue rose 8.6% to $234.7 million from $216.1 million.

* Unisys Corp. said its profit more than tripled in the first quarter despite a hit to its revenue from unfavorable currency exchange rates. The information services company reported earnings of $62.7 million, or 14 cents per diluted share, compared with $19.3 million, or a loss of 6 cents, in the year-earlier period. Revenue rose 8% to $1.65 billion from $1.53 billion.

* Woodland Hills-based 20th Century Industries reported first-quarter net income of $27.9 million, or 34 cents per diluted share, compared with $27 million, or 34 cents, a year earlier.

* Mead Corp. profit rose 51% to $30.6 million, or 29 cents a diluted share, in the first quarter from $20.2 million, or 19 cents, a year ago, as sales rose 2.6% to $1.17 billion.

* Eaton Corp.’s first-quarter profit rose 4% to $105 million, or $1.42 a diluted share, from $101 million, or $1.29, a year ago. The maker of vehicle parts, electronic components and semiconductor equipment said sales fell 5.6% to $1.69 billion.

* ACNielsen Corp. reported its first quarterly profit in five years, earning $3.7 million, or 6 cents a share, compared with a loss of $4.1 million, or 7 cents, a year ago. The market researcher’s revenue was nearly flat at $325.8 million.

* Grand Prix Assn. of Long Beach, owner and operator of the Toyota Grand Prix of Long Beach, reported a first-quarter net loss of $1.4 million, or 29 cents per diluted share, compared with a net loss of $790,000, or 22 cents, a year ago.

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Bloomberg News and Associated Press were used in compiling this report.