European Recalls Hurt Coke Bottler’s Profit

Coca-Cola Enterprises Inc., the world’s largest soft-drink bottler, warned that second-quarter profit will be hurt by the recalls of drinks from two European plants that were linked to illnesses and sparked a health scare. The company, 42% owned by Coca-Cola Co., said the recalls would cost it about $60 million in the quarter, though it’s not yet sure how much profit or sales will be reduced. The warning is the first disclosure of the financial cost of the scare, which started in Belgium this month when schoolchildren fell ill after drinking Coke products. Though the recalls and bans in several nations blemished Coca-Cola’s image, the soft-drink maker should quickly recoup in Europe, its second-biggest market, analysts said. Atlanta-based Coca-Cola Enterprises shares fell 69 cents to close at $31.69. Coca-Cola, also based in Atlanta, rose 94 cents to $62.69.