ATLANTA (dpa-AFX) - Coca-Cola Enterprises, Inc. (CCE), Europe's largest bottler of Coca-Cola Co. (KO) beverages, reported Thursday a sharp decline in first-quarter profit on higher restructuring charges. Comparable earnings per share increased and topped Street estimates, while sales missed view. The company also lifted fiscal 2013 earnings growth view.
Further, the company said the right to acquire the German bottling business from Coca-Cola will expire on May 25. As a result, CCE will increase the current share repurchase plan, with a target of approximately $1 billion of shares to be repurchased in 2013.
The company's first-quarter net earnings plunged to $61 million or $0.21 per share from last year's $109 million or $0.35 per share.
On a comparable basis, excluding restructuring charges, earnings were $111 million or $0.39 per share, compared to last year's $112 million or $0.36 per share.
On average, 11 analysts polled by Thomson Reuters expected earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales totaled $1.85 billion, down 1 percent from last year's $1.87 billion, while analysts were looking for sales of $1.90 billion.
Looking ahead, the company now expects fiscal 2013 comparable and currency neutral earnings per share growth of approximately 11 percent to 12 percent.
Net sales are now expected to grow in a low to mid-single-digit range and operating income growth continues to be in a mid-single-digit range.
The company previously expected comparable and currency neutral earnings per share growth of about 10 percent, on projected net sales and operating income growth in a mid-single-digit range.
John Brock, chairman and chief executive officer, said, 'While sustained economic challenges persist, we believe our sales initiatives, the ongoing benefits of our Business Transformation Program, and a more normal business environment will enable us to achieve our 2013 operating income growth objective.'
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