Coca-Cola Shows Signs of Life

The soft drink giant sees earnings jump 9% in the second quarter.
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earnings rose a better-than-expected 9% from a year ago thanks to warm weather and good execution in a number of emerging markets.

Coke earned $1.72 billion, or 72 cents a share, in the quarter, compared with $1.58 billion, or 65 cents a share, last year. Adjusted for a gain, the company earned 68 cents a share in the quarter, beating estimates by 4 cents a share. Sales rose 7% from a year ago to $6.31 billion, matching estimates.

The company's preferred volume metric, unit case volume, rose 5% on a companywide basis in the second quarter from a year ago, led by a 7% jump in Coke's international operations. Double-digit volume gains were recorded in Brazil, China, Russia, Venezuela, Turkey and the Middle East.

In the U.S., unit case volume rose 1% from a year ago while operating income fell 7%, reflecting higher advertising and raw material costs.

"We still have considerable work ahead of us in the U.S. and in markets like Germany, the Philippines and, in particular, India, as well as to improve our performance in the areas of innovation and marketing," Coke said in a statement. "In the second half of the year, the work, already under way to rebuild the system for profitable long-term growth, will intensify."