Coca Cola to cut costs, earnings fall in Q3, Report

Coca-Cola Co unveiled a broader cost-cutting program as its worldwide soda volume was flat and revenue slipped in the third quarter amid what the soda maker dubbed a challenging economic environment.

The Atlanta-based beverage giant reported net income of $2.11 billion in the quarter, down from $2.45 billion during the same period a year ago. Earnings per share was 48 cents in the third quarter of 2014, down 13 percent from 54 cents this time last year. Revenue dropped slightly from $12 billion to $11.98 billion.

Coca-Cola said the $3 billion in savings by 2019 would come from streamlining and continued refranchising plans for the North America bottling system.

Sparkling volume fell 1 percent in the quarter in North America, despite a successful “share a Coke” campaign that the company said helped it gain value share in the competitive segment. Volume for still beverages, which includes water and juices and had been a consistent bright side in North America, also was down 1 percent.

Worldwide, still volume grew 2 percent in the quarter and is up 5 percent to date, Coca-Cola reported. Worldwide sparkling volume growth was even in the quarter and up 2 percent for the year.

Agencies/Canadajournal

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