Coca-Cola Bottling 3Q Profit Falls 37 Percent
CHARLOTTE, N.C. (AP) — Coca-Cola Bottling Co. said its third-quarter net income fell 37 percent despite a revenue increase as its costs rose more than 9 percent.
The company reported net income for the quarter of $9.8 million, or $1.06 per share, compared with $15.5 million, or $1.69 per share, a year earlier.
Its quarterly revenue was $405.9 million, up from $395.4 million.
Excluding one-time items, such as a loss on fuel and aluminum hedges and a gain from changes in its tax reserves, the company said it earned $1.09 per share, compared with adjusted earnings of $1.31 per share the year before.
Coca-Cola Bottling packages and distributes beverages, primarily for soft drink maker Coca-Cola Co.
Executives said in a statement that consumers remain cautious and the competitive environment is tough.
"2011 has been a challenging year as the economy remains weak and commodity costs continue to increase at rates that exceed the rate of inflation," said Chairman and CEO Frank Harrison.
The bottling company said its third-quarter earnings were hit by losses including the accounting adjustments on fuel and aluminum hedges. Companies hedge prices for raw materials like metal and fuel by agreeing to pay a given price for future supplies. Those hedges can result in losses if prices change unexpectedly before the hedging contract is fulfilled.
Shares of the company fell 74 cents, or 1.3 percent, to $56.76 in after-market trading after the results were released. They had ended regular trading up $1.30, or 2.3 percent, at $57.50.