Coca-Cola Reaffirms, Bottler Lowers Outlook

Coca-Cola (KO Quote) reaffirmed its second-quarter and full-year financial outlook Wednesday.

The Atlanta-based beverage company expects its international business, which represents more than 80% of its operating income, will continue to offset weakness in its North America operations, while currency is likely to provide a mid-single digit benefit to 2008 operating income.

The announcement came shortly after the company's largest bottler, Coca-Cola Enterprises (CCE Quote), revealed it now expects a mid to high single-digit year-over-year decline in second-quarter earnings.

Coca-Cola Enterprises said that "weakening economic trends have continued to limit volume performance in North America, particularly in higher margin 20-ounce packages of sparkling beverages and water," and that trend has negatively affected operating income. In Europe, however, CCE expects "modest" second-quarter volume and operating income growth.

The Atlanta-based company said it will update its full-year guidance during its second-quarter earnings call in July.

"We are working to deliver our full-year 2008 earnings guidance of $1.50 to $1.55 earnings per share. However, this will be challenging if current economic and market trends do not improve," said CEO John Brock in a statement.