Coca-Cola second quarter profits below target

Coca-cola’s second-quarter sales were weaker than expected as global economic weakness and cool weather crimped the consumption of soft drinks, sending its shares down more than 2 per cent, the firm anounced yesterday.

Coca-cola’s second-quarter sales were weaker than expected as global economic weakness and cool weather crimped the consumption of soft drinks, sending its shares down more than 2 per cent, the firm anounced yesterday.

The company said sales volume rose 1 per cent, which was below its expectations, and cited slow economies in Europe, Asia and Latin America. It also said historically wet and cold weather across various regions curbed sales of soft drinks and overall consumer spending. Sales volume measures the amount of drinks sold.

Coke chief executive Muhtar Kent said he believes the company’s performance would improve in the second half, even though foreign exchange rates are expected to hurt earnings by 4 per cent. The company’s prior view was for a 2 percentage point hit.

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