NEW YORK (CNN/Money) - Coca-Cola Co. reported improved second-quarter earnings Wednesday that met Wall Street expectations, citing the rollout of new soft drinks and a solid performance in the North American market, but warned that currency fluctuations could hurt its numbers for the full year.

Shares of the No. 1 soft drink maker rose nearly 2 percent in late morning trading.

The Atlanta-based company earned $1.29 billion, or 52 cents a share, up from $1.12 billion, or 45 cents, in the year-earlier period. Revenue jumped to $5.37 billion from $4.65 billion.

Second-quarter results were unaffected by its decision Sunday to begin to expense the cost of its stock options, the company said. The accounting change, which becomes effective in the fourth quarter, will cut about a penny per share from Coke's earnings in 2002 and about 3 cents per share in 2003.

"These results are satisfactory, especially in light of the current economic climate. Our results include solid growth in our core brands, new brands and the volume contributions of strategic acquisitions, validating our ongoing approach of adding brands to our business that have attractive and profitable growth potential," Chairman and CEO Doug Daft said.

The maker of Sprite, Fanta and Poweraid in addition to its flagship Coke and Diet Coke products, also said in a conference call that it expects currency fluctuations in its international markets will cut about 8 to 10 cents a share from its earnings for the year.

Chief Financial Officer Gary Fayard said the negative currency impact would be "substantially less" in 2003 if the U.S. dollar remained at its current levels and there were no significant devaluations in emerging markets.

Coca-Cola (KO: Research, Estimates) said it remains comfortable with estimates for the full year although it expects a challenging business environment to continue.  

--from staff and wire reports