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Coke 2Q bubbles over
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July 19, 2000: 1:29 p.m. ET
Soft drink maker shows strong unit-case volume, reaffirms 2000, 2001 forecasts
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NEW YORK (CNNfn) - Coca-Cola Co. reported higher second-quarter earnings surpassing Wall Street expectations Wednesday, and reaffirmed its expectations for revenue and earnings for the rest of 2000 and 2001.
 Coca-Cola, the world's largest soft-drink maker, reported earnings before one-time items of $926 million, or 44 cents a share, compared with $942 million, or 38 cents a share, in the year-earlier period. Earnings tracker First Call expected Coke to earn 41 cents a share.
Investors rewarded Atlanta-based Coke Wednesday sending its shares 1-15/16 to 60-1/8 in trading following the announcement.
Coca-Cola (KO: Research, Estimates) said worldwide unit-case volume grew by 7 percent. Overall revenue grew more than 5 percent to $5.62 billion. The company said it expects to meet its objective of worldwide unit-case volume growth of 5 to 6 percent for the full year 2000, thanks in part to improving economic conditions, and its forecasts for 2001 remain unchanged.
The company, a component of the Dow Jones industrial average, attributed its profitability in part to savings from a recent restructuring effort in which it trimmed about 5,000 jobs.
"We are beginning to see the benefits from the large-scale reshaping that we started several months ago," CEO Douglas Daft said.
Including charges relating to that restructuring, Coca-Cola earned 37 cents a share in the quarter.
Analysts also liked what they heard from Coke.
"I think it was very on-track "quarter. I like what I'm hearing from them. I think that there definitely is a change in the way that they're approaching the business," said Jennifer Solomon, an analyst with Salomon Smith Barney.
Coke saw worldwide profitability increase, except in Africa where unstable economic conditions and weather have hurt volume, Jack Stahl, the company's president and chief operating officer, told analysts during a Wednesday morning conference call.
Worldwide unit case volume rose more than 5 percent excluding the Schweppes brands, which it acquired in the third quarter of 1999.
Stahl said North American unit case volume increased more than 1 percent in the quarter, but this represents a slowdown in growth from previous quarters because of higher prices for Coke at the supermarket.
More regional marketing
During the analyst call, Daft said the restructuring effort has focused on giving local and regional bottlers worldwide more control over marketing efforts tailored for their specific consumers.
"That driving thought is why we have been implementing the change," Daft said. "We have always been a truly local business built on the world's best brand. We have restored local autonomy around marketing."
As an example, Stahl noted that European marketers are using a new contoured bottle featuring labels with the Coke name in different languages to sell Coke in dance clubs and bars catering to teens.
The company's Fanta products are being marketed as a local brand to Hispanic consumers in South Texas, he said.
Looking ahead, Coke said it expects strong performance from marketing efforts already underway in Australia centered around the Summer Olympics scheduled to take place there in September. Similar programs will appear in the U.S. later this summer, Stahl said.
Coca-Cola shares rose 2-1/16 to 60-1/4 in Wednesday afternoon trading. 
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Coca-Cola
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