European sales, lower taxes fuel Coke profit

Coca-Cola reported a 12 per cent jump in quarterly earnings due to strong sales of its soft drinks, juices and bottled waters…

Coca-Cola reported a 12 per cent jump in quarterly earnings due to strong sales of its soft drinks, juices and bottled waters in Europe, lower taxes and a drop in interest expenses.

The world's largest soft-drink maker said its focus on building core brands, streamlining operations and keeping costs under control was helping it to gain market share from competitors and improve profitability.

Reversing sluggish sales of its flagship Coke Classic product and other marquee labels has been a top priority for Coca-Cola since it embarked on a sweeping restructuring of its operations in early 2000.

For the third quarter of 2003, Atlanta-based Coca-Cola earned $1.22 billion compared with net income of $1.09 billion in the same period last year.

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A weaker US dollar and an extended heat wave in France, Germany, Italy and other parts of Europe last summer helped the soft drink giant offset comparatively sluggish sales in its Asian and North American markets.

In a statement accompanying the results, Coca-Cola Chairman and CEO Doug Daft said the company's restructuring and renewed focus on marketing had strengthened its business worldwide.