Source Pravda.Ru

Coca-Cola Enterprises expects 2Q profit decline

Coca-Cola Enterprises (NYSE: CCE), the world's largest marketer, producer, and distributor of Coca-Cola products, reported mid to high decline expectations in view of weak North American economy.

The company’s forecasts for the second-quarter profit are quite dramatic due to dropped shares (by 5.1 percent). If the situation isn’t improved the company won’t gain its full-year earnings forecast of $1.50 to $1.55 a share.

Unstable market hurt the weakest side of Coca-Cola’s business – sales of 20-ounce bottles. The main reasons are big supply expenses and failing strategy of “growing volume at a slower rate.”

Current poor financial state and low expectations may also result from addition of Glaceau beverages.

In spite of instability Coca-Cola confident of strength in international markets and expects modest volume and operating income growth in the second quarter in Europe.

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