Coca-Cola Warns of Up to 2% Drop in First-Quarter Revenue

The soft-drink giant also expects to miss its 1999 volume growth targets. Plus other postclose news.
Publish date:

Minutes after the

Dow Jones Industrial Average

struck 10,000, one of largest its components warned of future weakness.


(KO) - Get Report

fell to 64 13/16 in late composite trading from a New York close of 67 3/16 after saying it expects worldwide sales to drop up to 2% in the first quarter. The soft-drink company also said it doesn't expect to meet its 7% to 8% annual volume growth target in 1999. The company blamed the news on weakened customer demand in Latin America and increased volatility in Russia.

In other postclose news (earnings estimates from

First Call

; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

Cyberian Outpost


reported a fourth-quarter loss of 34 cents a share, a nickel narrower than the three-analyst forecast and narrower than the year-ago loss of 48 cents.



said it expects third-quarter earnings of 50 cents to 54 cents a share because of the slowdown in Asia and Latin America. The six-analyst projection called for earnings of 60 cents vs. the year-ago 75 cents.

HMT Technology


said it sees a fourth-quarter loss but that it expects to generate a positive cash flow for the quarter. The four-analyst outlook called for earnings of 7 cents a share vs. the year-ago profit of 31 cents.



said it sees first-quarter earnings of 4 cents and 8 cents a share because of higher labor costs and a squeeze on its margins. The single-analyst view called for a repeat of the year-ago profit of 30 cents.



posted fourth-quarter earnings of 20 cents a share, a penny ahead of the single-analyst view but below the year-ago 36 cents.



reported a fourth-quarter loss of 56 cents a share, wider than the three-analyst view of 38 cents but narrower than the year-ago loss $5.05. The company also said it will cut 10% of its workforce and that it sees a $550,000 first-quarter charge.

Mergers, acquisitions and joint ventures

Binks Sames


said it has received unsolicited inquiries from parties interested in acquiring part or all of the company.


(CB) - Get Report


Federal Trade Commission

approval for its planned $850 million acquisition of

Executive Risk



Imperial Bancorp


said its agreement to sell its 24.3% stake in

Imperial Credit Industries



Leucadia National


was terminated. Imperial said it will hire an investment banker to sell the stake.

SBS Broadcasting System


said it will acquire

Central European Media Enterprises

(CETV) - Get Report

in a $615 million deal.

Spectra-Physics Lasers


said it expects to report a first-quarter loss of 10 cents to 13 cents a share due to weak demand in several key application markets and the continued slowdown in the commercial printing and graphics market. The two-analyst view called for 9 cents vs. the year-ago 13 cents.

Blaming weak Valentine's Day sales and the euro,

USA Floral Products


said it sees first-quarter earnings of 21 cents to 24 cents a share. The six-analyst forecast called for 47 cents vs. the year-ago 31 cents.

Offerings and stock actions

Morgan Stanley Dean Witter



10 million-share IPO above range at $16 a share. In

stories last week,

questioned the treatment of the offering on the company's Web site.

American Eagle Outfitters


set a 2-for-1 stock split.

Keystone Financial


approved a 1 million-share buyback plan.

NationsBanc Montgomery Securities


MKS Instruments'

(MKSI:Nasdaq) 6.5 million-share IPO below range at $14 a share. MKS is a semiconductor device maker.

Sierra Health Services


said it added $20 million to its buyback program and that it already has invested $22 million of the original $25 million authorized for the program. The company also said it will take a charge of $13.2 million in the first quarter to cover costs of closing an Arizona hospital, in addition to expenses from exiting markets and severance packages.


(AMZN) - Get Report

said it will launch its previously announced person-to-person auction service with "tens of thousands" of items for sale Tuesday.

CarrAmerica Realty


said it settled all obligations outstanding under its forward equity transaction with

Merrill Lynch



(MSFT) - Get Report

said its Office 2000 software suite will be available to volume customers in April and retail customers June 10.



named President and CEO Jerry Levin to the additional post of chairman, succeeding Peter Langerman, who served as the interim chair.