Coke Earnings Dragged Down By Currency Exchange, Charges

(RTTNews) - Coca-Cola (KO) announced earnings for the fourth quarter that dropped more than 50 percent from last year, hurt by unfavorable currency exchange and by costs associated with initiatives aimed at improving productivity.

The drink maker also struck a cautious tone going into 2015, citing the volatile economic environment.

Profits at the company were down sharply for the quarter compared to last year. Net income dropped to $771 million, down 55 percent from last year's mark of $1.7 billion. Earnings per share retreated to $0.17 from $0.38 in the fourth quarter of 2013.

The company reported net operating revenue of $10.87 billion. This was down 2 percent compared to the same period last year, when it posted a revenue figure of $11.04 billion.

However, ignoring the impact of currency exchange and structural items, the company's revenue grew 4 percent.

The company incurred costs during the quarter related to a previously announced program aimed at improving productivity.

The bottom line was also impacted by unfavorable currency exchange and various other one-time costs. These included a write-down related to a bottling partner in Venezuela and charges related to refranchising certain territories in North America.

Looking ahead, the company characterized 2015 as a "transition year," with its initiatives taking time to see benefits. Coke also noted that the macroeconomic environment remains uncertain and volatile.

Muhtar Kent, Chairman and CEO of Coke, said of the results: "We are making solid progress on the implementation of the strategic initiatives we announced in October as evidenced by some early positive signs in the quarter."

He added, "We remain resolutely focused on accelerating growth and taking advantage of opportunities to solidify our position in key markets and categories."