Coca-Cola Co said on Wednesday quarterly profit rose a better-than-expected 13 percent on strong international sales, the weak dollar and a lower tax rate. The world's largest beverage company, which makes Powerade sports drink and Dasani bottled water in addition to its namesake soft drinks, also gave a positive outlook for the global economy and commodity costs, helping to send shares up 2 percent in early trading.
"We are starting to see a moderation in commodity costs impacting beverage companies, both globally and in North America, and we believe the worst is behind us," said Chief Financial Officer Gary Fayard on a conference call.
Coke said net income rose to $1.65 billion, or 71 cents per share, for the third quarter that ended September 28, up from $1.46 billion, or 62 cents per share, a year earlier.
Analysts on average were expecting 68 cents per share, according to Reuters Estimates. A 3 cent-per-share restructuring charge in the quarter was offset by a 3 cent-per-share gain, mostly from the sale of a portion of its Coca-Cola Amatil Ltd holdings, the company said.
Coke lowered its expected full-year tax rate to 22 percent from 22.5 percent, providing a 1 cent-per-share benefit in the quarter. The company forecast that its tax rate for 2008 would be between 22 percent and 22.5 percent. Net operating revenue rose 19 percent to $7.69 billion.
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