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CORRECTED-UPDATE 1-Strong dollar weighs on Coca-Cola Enterprises
July 23, 2012 / 12:06 PM / 5 years ago

CORRECTED-UPDATE 1-Strong dollar weighs on Coca-Cola Enterprises

(Corrects headline to “strong” dollar instead of “weak” dollar)

July 23 (Reuters) - Coca-Cola Enterprises Inc posted lower quarterly earnings on Monday, hurt by cool weather in Europe, a French excise tax increase and a stronger U.S. dollar, and it gave a full-year earnings forecast mostly below Wall Street estimates.

The bottler of Coca-Cola drinks said it expected to earn $2.18 to $2.24 per share this year, including a 10-percentage-point reduction from foreign exchange rates.

Analysts on average had been expecting 2012 earnings of $2.24 per share, based on the company’s earlier forecast for growth of about 10 percent.

Coca-Cola Enterprises forecast net sales and operating income growth at mid-single-digit percentage rates for the year.

Net income was $205 million, or 67 cents per share, in the second quarter, down from $246 million, or 74 cents per share, a year earlier.

Excluding items, earnings were 73 cents per share. That was in line with the analysts’ average estimate, according to Thomson Reuters I/B/E/S.

Net sales fell to $2.21 billion from $2.41 billion.

The company does all its business in Europe, so the strengthening of the U.S. dollar reduces the value of its revenue and profit. (Reporting By Martinne Geller in New York; Editing by Maureen Bavdek and Lisa Von Ahn)

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