Coca-Cola Profit Falls 21% on Asia Slowdown, Health Scare
Coca-Cola Co. said its profit fell 21% in the second quarter to $942 million, or 38 cents a share, because of slowing demand in Asia and the fallout from a health scare in Europe.
The world’s largest soft-drink company said revenue rose 4.4% to $5.38 billion. Three-fourths of Atlanta-based Coke’s profit and two-thirds of sales come from overseas.
The results met recently reduced estimates of analysts polled by First Call Corp.
The company warned two weeks ago that second-quarter profit would be reduced by sales bans and recalls in Europe, where about 250 consumers fell ill after drinking its products, and declining sales abroad. Before then, Coca-Cola was expected to earn 41 cents a share.
Global case sales, a key indicator of growth, fell 2%, about what analysts expected. Shipments of syrup concentrate to bottlers also fell 2% as measured in gallons.
At a Glance
Other earnings, excluding one-time gains and charges unless noted:
* Gillette Co.’s profit dropped 19% to $300 million, or 26 cents a share, as sales rose just 3.8% to $2.41 billion. While the year-old Mach3 razor is doing well, sales of appliances, pens and toiletries continue to slide. The results matched expectations of analysts, who had lowered their forecasts after Gillette warned the quarter would disappoint. The earnings were announced after the close of trading.
* Hasbro Inc.’s earnings climbed nearly sixfold in the latest quarter on demand for merchandise tied to the new “Star Wars” movie and its interactive Furby toys. Net income at the toy company rose to $32.3 million, or 16 cents a share, from $5.5 million, or 3 cents, a year ago, beating analyst forecasts by 6 cents. Revenue soared 53% to $874.6 million.
* MGM Grand Inc. said its second-quarter profit more than doubled as it sold out hotel rooms at its MGM Grand Las Vegas and won more from gamblers. Profit from operations was $33.3 million, or 52 cents a share, well beyond estimates of 40 cents and up from $14.4 million, or 25 cents, a year ago. Revenue jumped 72% to $319.1 million.
