UPDATE 2-Coke Enterprises profit in line with estimates

(Adds stock activity, analyst comment)

CHICAGO, Oct 24 (Reuters) - Coca-Cola Enterprises Inc (CCE.N: Quote, Profile, Research, Stock Buzz) reported quarterly earnings in line with estimates, as price increases driven by rising aluminum and sweetener costs cut into demand in North America.

Net income rose 25.8 percent for the largest bottler of Coca-Cola Co (KO.N: Quote, Profile, Research, Stock Buzz) drinks, boosted by a one-time tax benefit and other items, but earnings from operations fell as shipment volume weakened in North America and Europe.

Europe was hit by cooler and wet summer weather early in the quarter, though demand improved later in the quarter, the company said. The company said it expects volume to increase in Europe in the fourth quarter.

The company posted net income of $268 million, or 55 cents per share, for the third quarter, compared with $213 million, or 44 cents per share, a year before.

Excluding items, the company earned 44 cents per share, down from 45 cents a year earlier. Analysts on average had forecast 44 cents a share, according to Reuters Estimates.

Net operating revenue rose rose 3.6 percent to $5.41 billion.

The company shipped 2.5 percent fewer cases during the quarter, compared with a year earlier, while costs rose 6 percent and price per case rose 4 percent, excluding the impact of the weaker dollar.

Weakness in Europe had been expected, while U.S. volume was softer than expected, Goldman Sachs analyst Judy Hong said in a research note.