Coca-Cola Enterprises Reverses Prior-Year 2Q Loss, Upgrades View

   DOW JONES NEWSWIRES 
 

Coca-Cola Enterprises Inc. (CCE) reversed a prior-year loss in the second quarter caused by a $5.3 billion write-down of its licensing assets, while the company's latest results exceeded Wall Street estimates as price hikes and cost cutting helped the bottom line.

In addition, Coca-Cola Co.'s (KO) biggest bottler raised its 2009 earnings forecast by 20 cents to $1.44 to $1.49 a share to reflect first-half results and moderating effects from currency changes.

Soda bottlers have struggled in recent years with weakened volumes as North Americans turned to other drinks, including bottled water and vitamin-infused beverages. However, in recent months sales of pricier noncarbonated soft drinks that companies were looking to for growth, such as ready-to-drink teas, bottled water and energy drinks also have weakened, pressuring beverage companies and bottlers.

Coca-Cola Enterprises reported a profit of $313 million, or 64 cents a share, compared with a prior-year loss of $3.2 billion, or $6.48 a share. Excluding restructuring charges and the write-down, earnings rose to 67 cents from 56 cents.

Revenue dipped 0.5% to $5.91 billion, but excluding currency effects rose 6%.

Analysts polled by Thomson Reuters most recently were looking for earnings of 51 cents on revenue of $5.99 billion.

Gross margin rose to 38.3% from 37.1% amid higher prices.

Volume fell 1% while prices increased 8%. In North America, revenue increased 2.5% though volume fell 3.5%. However in Europe, revenue declined 6.6% on currency impacts, masking 6.5% volume growth.

Shares closed at $18.41 on Tuesday and didn't trade premarket. The stock is up by roughly half this year.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]