Shares of Coke drop after it reports strong earnings, but international weakness

<p>Shares of The Coca-Cola Co. fell sharply Friday after the world's largest beverage maker said it is experiencing a decline in volume and other challenges in several international markets.</p><p>Investors shrugged off the company's 16 percent gain in second-quarter profit, announced after the market closed Thursday. On the New York Stock Exchange, shares of Coke sank $3.80, or 7.8 percent, to close Friday at $45.17.</p><p>Atlanta-based Coke said it earned $1.58 billion, or 65 cents a share, for the three months ending June 30, compared with a profit of $1.36 billion, or 55 cents a share, in the year-ago period.</p><p>Excluding one-time items, Coke said it earned $1.55 billion, or 64 cents share. On that basis, analysts surveyed by Thomson First Call were expecting earnings of 63 cents a share.</p><p>Revenue in the April-June period rose 5 percent to $5.97 billion, from $5.70 billion a year ago.</p><p>Chief executive Neville Isdell said Coke saw volume decline in several countries, including Germany, Mexico and the Philippines. He said the tough environment there is expected to continue the rest of the year.</p><p>In Germany, unit case volume dropped 15 percent in the second quarter. Coke said it was affected there by poor weather and the rapid growth of discounters.</p><p>In Mexico, unit case volume declined by 3 percent in the quarter. Coke cited unusual weather, especially in May, coupled with a company decision to focus water sales on smaller, single-serve and immediate consumption formats.</p><p>Coke said pricing and packaging initiatives led to volume declines in the Philippines and Indonesia.</p><p>There were bright spots for Coke internationally in the quarter, including in Asia. Worldwide unit case volume increased 1 percent in the second quarter.</p><p>___</p><p>On the Net:</p><p>HASH(0x2866598)</p>