Coca-Cola Enterprises (NYSE: CCE), the world's largest marketer, producer, and distributor of Coca-Cola products, reported mid to high decline expectations in view of weak North American economy.
The company’s forecasts for the second-quarter profit are quite dramatic due to dropped shares (by 5.1 percent). If the situation isn’t improved the company won’t gain its full-year earnings forecast of $1.50 to $1.55 a share.
Unstable market hurt the weakest side of Coca-Cola’s business – sales of 20-ounce bottles. The main reasons are big supply expenses and failing strategy of “growing volume at a slower rate.”
Current poor financial state and low expectations may also result from addition of Glaceau beverages.
In spite of instability Coca-Cola confident of strength in international markets and expects modest volume and operating income growth in the second quarter in Europe.
Europe and Russia could come to an agreement on many issues if it had not been for such issues as Ukraine and Crimea.