Coca-Cola Q4 Profit Down, Adj. Profit Matches View - Quick Facts

(RTTNews) - Coca-Cola Co.(KO) reported that its fourth-quarter net income attributable to shareowners of the company declined to $1.71 billion from the previous year's $1.87 billion, with earnings per share decreasing to $0.38 from $0.41 in the same quarter last year.

But, comparable earnings for the quarter were rose to $2.06 billion or $0.46 per share from the prior year's $2.05 billion or $0.45 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Reported operating income decreased 4%, reflecting a 6% currency headwind, a 4% unfavorable impact due to the structural changes referenced above, as well as the effect of items impacting comparability. Excluding the impact of structural changes, comparable currency neutral operating income increased 6%. Items impacting comparability reduced fourth quarter 2013 operating income by $278 million and reduced fourth quarter 2012 operating income by $300 million.

Net operating revenues for the quarter declined 4% to $11.04 billion from $11.46 billion in the year ago quarter. Thirteen analysts estimated revenues of $11.31 billion for the quarter.

Excluding the impact of structural changes, comparable currency neutral net revenues grew 4% in the quarter, reflecting an increase in concentrate sales and positive price/mix. Structural changes that impacted net revenues were primarily the deconsolidation of bottling operations in the Philippines and Brazil.

The Coca-Cola Company reported worldwide volume growth of 2% for the full year and 1% for the fourth quarter.

The company expects that currency exchange rates will have an unfavorable impact on its reported results in 2014. Based on current spot rates, the company's existing hedge positions, and the cycling of its prior year rates, the firm estimates currency to be an approximate 7% headwind on its full-year operating income, and an approximate 10% headwind on first quarter operating income.

In 2014, the company targets net share repurchases of $2.5 billion to $3.0 billion.

The bottling transactions completed in 2013 are anticipated to have an unfavorable 1% structural impact on both its full-year 2014 net revenues and operating income, the company said.