Strong dollar hurts Coke profits
New York - Coca-Cola Co reported quarterly earnings in line with Wall Street estimates on Tuesday, but revenue fell slightly short, and its shares fell nearly 1% in premarket trading.
The world’s biggest soft drink maker, with brands such as Sprite, Fanta and Minute Maid, said revenue and profit were hurt by the stronger US dollar, which reduces the value of overseas sales.
Coca-Cola gets the majority of its sales from outside the United States, so shifts in currency can have a noticeable effect on results.
Net income was $2.31bn, or 50 cents per share, in the third quarter that ended on September 28, up from $2.22bn, or 48c per share, a year earlier.
Excluding items, earnings were 51c per share, in line with analysts’ average estimate, according to Thomson Reuters I/B/E/S.
Revenue rose 1% to $12.34bn.
Analysts were expecting revenue of $12.41bn.
Coke’s shares slid 0.9% to $37.80 in premarket trading.