Coca-Cola profit in the fourth quarter of 2011 dropped by 71% due to restructuring costs. The U.S. company based in Atlanta, Georgia, announced that its financial results exceeded analysts’ expectations because it sold more soft drinks in the U.S. and abroad, especially in emerging markets. In the pre-trading session of the New York Stock Exchange, Coke shares rose 71 cents to $68.74. The company announced the start of a cost reduction program in 2012 to achieve savings of 550-650 million dollars annually by 2015, in order to partially offset increased raw material prices.
From October to December 2011, Coca-Cola has made a profit of $1.65 billion, or 72 cents per share, compared to 5.77 billion dollars, or $2.46 per share, in the same period of 2010. But back then the company recorded a net gain of $1.74 per share following the acquisition of bottling operations in North America. Revenue rose 5% to 11.04 billion dollars, due to higher prices and strong results registered abroad. Wall Street analysts were expecting revenue of 11 billion euros in the fourth quarter of 2011.
In 2011 Coca-Cola posted a net profit of 8.57 billion dollars, or $3.69 per share, down 27% compared to 2010, when profit was 11.81 billion dollars, or $5.06 per share. Revenue rose 33% to 46.54 billion dollars from 35.12 billion dollars. The growth in sparkling beverages continued, as the worldwide brand Coca-Cola volume grew 3% and the volume of worldwide still beverage grew by 6%. The volume growth was 1% in Europe and North America, 4% in Latin America, 5% in Pacific area, mainly due to 10% growth in China. South Korea recorded the biggest growth, 25%. Coca-Cola reported the successful completion of a four-year productivity with annualized savings of over $500. The initial target range was $400 to $500 in savings. The company is targeting for this year a share re-purchase of $2.5 to $3 billion.
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