Coca Cola Company (KO)

[Paule]

The Coca-Cola Company Announces First Quarter Operating Results And Outlook for Future Growth* Earnings per share of $0.35 and worldwide unit case volume growth of 4 percent, driven by 6 percent international growth. * Management comfortable with cu


ATLANTA, Apr 18, 2001 /PRNewswire via COMTEX/ -- The Coca-Cola Company reported
today that first quarter earnings per share were $0.35, compared with a loss of
$0.02 a year ago, on a reported basis. Worldwide unit case volumes grew 4
percent in the quarter, driven by international growth of 6 percent.

Taking into account first quarter volume performance in key markets and a
slightly more conservative outlook due to economic indicators, the Company now
expects unit case volume growth of 5 to 6 percent in the current year. This
incorporates the anticipated benefits of heightened marketing activities, led by
a new campaign for brand Coca-Cola, which will begin in the second quarter.

After considering the revised outlook for volume growth, the Company remains
comfortable with full-year diluted earnings per share in the range of analysts'
expectations. This estimate excludes any impact from transactional gains, as the
Company views such items as nonrecurring in nature.

Regarding the longer-term outlook, Douglas N. Daft, chairman and chief executive
officer, said, "We have recently concluded a thorough, disciplined process
involving a comprehensive business analysis of all factors impacting our system,
including the macroeconomic environment, demographic trends, consumption
patterns, and the long-term financial returns of the Coca-Cola system. As a
result of this exhaustive analysis, which we have reviewed with the Board of
Directors, we have recalibrated our long-term performance objectives. We are
confident that in the future we will be able to consistently achieve growth of
company-owned, worldwide unit case volume in the range of 5 to 6 percent and
earnings per share growth in the range of 11 to 12 percent, on a currency
neutral basis."

For 2002, the Company anticipates that volume and earnings per share will grow
in accordance with long-term objectives from a base earnings per share amount
that excludes the previously announced 2001 incremental marketing activities.

Mr. Daft said, "Over the past year, we have strengthened our platform to deliver
long-term shareowner value. More importantly, we will continue to do so over
time. Our success will be driven not by short-term financial goals alone, but by
our system's ability to capitalize on our key competitive advantages.

"The financial yardsticks we will use to measure ourselves, and by which we
believe others will measure us, include our ability to deliver significant cash
flows, strong operating income and attractive returns on capital well into the
future. Coca-Cola has the most recognized beverage brands in the world and is
able to reach consumers in nearly 200 countries through an unparalleled
distribution system.

"Our core business has the potential for significant expansion and can realize
that opportunity. For example, people outside the United States drink less than
one serving of carbonated soft drinks a week. Within the U.S., consumers drink
more than one serving a day. Therefore, we continue to aggressively drive the
business and build on our competitive strengths, and we are confident this will
produce sustainable growth in volume, earnings and cash flow, delivering
outstanding financial returns for our system and our share owners," concluded
Mr. Daft.

Volume Measurement

Consistent with industry practice, in the future, the Company's unit case volume
information will only include unit case volume from operations which are
majority-owned by The Coca-Cola Company. Therefore, after regulatory approvals
are obtained, the Company intends to exclude volumes from the joint venture with
Nestle and from the company it is forming with Procter & Gamble.

Had the Company excluded unit case volume contributed in the first quarter 2001
by brands which will be managed through equity investments in the future,
worldwide unit case volumes would have grown 4 percent, reflecting no change.


 THE COCA-COLA COMPANY AND SUBSIDIARIES
 (In Millions, except per share data)

 First Quarter

 2001 2000 % Change
 NET OPERATING REVENUES $4,479 $4,256 5

 Cost of Goods Sold 1,345 1,398 (4)

 GROSS PROFIT 3,134 2,858 10

 Selling, Administrative and
 General Expenses 1,854 1,938 (4)

 Other Operating Charges
 Organizational Realignment -- 275 --
 Primarily Asset Write-downs -- 405 --

 OPERATING INCOME 1,280 240 433

 Interest Income 81 67 21

 Interest Expense 91 99 (8)

 Equity Loss - Net (38) (85) 55

 Other Income (Loss) - Net 15 (26) --

 Income Before Income Taxes and 1,247 97 --
 Cumulative Effect of Change in
 Accounting Principle

 Income Taxes 374 155 141
 Income Prior to Cumulative Effect
 of Change in Accounting Principle 873 (58) --

 Cumulative Effect of Change in
 Accounting Principle -- SFAS 133 (10) -- --

 NET INCOME (LOSS) $863 $(58) --


 DILUTED NET INCOME (LOSS)
 PER SHARE* $0.35 $(0.02) --

 Average Shares Outstanding -
 Diluted* 2,490 2,472 --

* For the first quarter, "Basic Net Income (Loss) Per Share" was $0.35 for 2001
and $(0.02) for 2000 based on "Average Shares Outstanding - Basic" of 2,486 and
2,472 for 2001 and 2000, respectively.

Operational Review

First quarter worldwide unit case volume increased 4 percent. Worldwide gallon
sales in the quarter increased 11 percent. Actual gallon sales were the
equivalent of unit cases in the quarter; however, the percentage increase in
gallon sales was higher than the increase in unit case volumes due to the
reduction of concentrate inventory by certain bottlers during the first quarter
of last year.

Asia -- Unit case volume increased 10 percent for the quarter due to strong
performance in most major markets, including China at 16 percent and India at 12
percent. Volumes within Japan grew by 1 percent, accelerating in the quarter to
reach very strong growth in March as a result of solid marketing programs behind
brand Coca-Cola and Georgia coffee. In the early part of the quarter, the
Company's focus was on growing the highly profitable coffee business, which is
weighted toward smaller package sizes. Gallon sales in Asia increased 34 percent
in the first quarter 2001, as a result of the planned inventory reduction by
selected bottlers in the first quarter 2000.

Latin America -- First quarter unit case volume increased 3 percent. In Brazil,
unit case volume increased 5 percent on top of 13 percent volume growth a year
ago, driven by locally developed marketing activities. Mexico was impacted by
extremely poor weather conditions early in the year; however, improving volume
trends allowed for growth in the quarter of 1 percent on top of 8 percent growth
last year.

In Argentina, the Company's strategy to offer greater diversity in its portfolio
led to unit case volume growth of 14 percent. In Chile, volumes declined 1
percent due to low levels of consumer spending and difficult comparisons from
the prior year. Gallon sales in Latin America increased 4 percent in the
quarter.

North America -- Unit case volume increased 1 percent in the first quarter, as
major 2001 marketing initiatives are heavily weighted to the second, third and
fourth quarters. New product launches have begun across North America, including
Fanta, Manzana Mia, Planet Java, KMX, Minute Maid Lemonade and Fruit Punch and
other products specifically tailored to consumer groups in each market. Gallon
sales in North America increased 4 percent compared to the prior year.

Europe, Eurasia and Middle East -- Unit case volume increased 4 percent. With
the exception of Turkey and Germany, performance was solid across the entire
region led by Central Europe, CCE Europe Territories and Southeast Europe. The
Eurasia Division reported a decline in volumes of 14 percent due to the
significant, continuing economic crisis in Turkey. Unit case volume growth in
Germany was negatively impacted by retail pricing actions. The Company
anticipates improving business results in Germany as the new management team,
business strategies, and aggressive marketing activities combine with a bottling
system which will be strengthened by the restructuring process now underway.
Gallon sales in Europe, Eurasia and Middle East increased 12 percent for the
year compared to the prior year.

Africa -- First quarter unit case volume increased 10 percent, led by South
Africa and Nigeria. In South Africa, local marketing initiatives and new product
launches combined for successful unit case volume growth. In addition to cycling
last year's volume decline resulting from a significant price increase, Nigeria
experienced volume increases driven by new product and packaging launches.
Gallon sales in Africa increased 33 percent compared to the prior year
reflecting the impact of the planned concentrate inventory reduction by selected
bottlers in 2000.

Financial Review

Fully diluted earnings per share were $0.35 for the first quarter. Revenues
increased by 5 percent in the first quarter reflecting gallon shipments and
price increases in selected countries, partially offset by structural change and
the impact of foreign currencies. Structural change related to the sale of the
Company's Japanese vending operation to local bottlers and the transfer of the
German canning operation to Coca-Cola bottlers in Germany. Both events impacted
revenues and cost of goods sold but had an immaterial impact on operating
income.

Operating income for the first quarter 2001 increased significantly due to solid
business results and the cycling of several nonrecurring items in the prior
year. The impact of a stronger U.S. dollar reduced our operating income by
approximately 3 percent during the first quarter, led by movements in the Euro,
Brazilian real, Australian dollar and South African rand. Excluding the
nonrecurring items in the prior year first quarter, net income grew by 11
percent.

In the first quarter 2000, a reduction in concentrate inventory by certain
bottlers impacted the Company's diluted earnings per share by approximately
$0.10 after tax. Reported operating income for the first quarter 2000 was also
impacted by nonrecurring charges of $0.08 per share after tax due to the
Company's organizational realignment and $0.16 per share after tax primarily
related to the write-down in the carrying value of the Company's Indian bottling
operations.

The Company reinitiated its share repurchase program during the first quarter
2001, reflecting improving cash flow trends. During the quarter, the Company
repurchased over 1 million shares of common stock at an average cost of $50.54
per share. Since the inception of our initial share repurchase program in
January 1984, the Company has repurchased over 32% of common shares then
outstanding, or a cumulative total of over 1 billion shares at an average cost
of approximately $12.51 per share.

Accounting Standards

During the quarter, the Company implemented SFAS 133, "Accounting for Derivative
Instruments and Hedging Activities," and the cumulative effect of the accounting
change was a one-time, non-cash charge of $10 million. The application of this
new accounting standard in the first quarter 2001 decreased earnings by $16
million on a pre-tax basis.

In the first quarter, the Company adopted the provisions of the Emerging Issues
Task Force (EITF) issue No. 00-14 "Accounting for Certain Sales Incentives," and
issue No. 00-22 "Accounting for Points and Certain Other Time-Based Sales
Incentive Offers, and Offers for Free Products or Services to Be Delivered in
the Future." The adoption of both EITF No. 00-14 and EITF No. 00-22 resulted in
the reclassification of $135 million for first quarter 2000, from selling,
administrative and general expenses to a reduction in net revenues. The amount
reclassified relates primarily to volume incentives offered to customers by The
Minute Maid Company.

Conference Call

The Company will host a conference call to discuss the first quarter 2001
earnings release with financial analysts on April 18, 2001 at 1:00 p.m. (EDT).
To listen, please visit the Investor Relations section of the Company's website
at www.coca-cola.com .

This press release contains statements, estimates or projections, not historical
in nature, that may constitute "forward-looking statements" as defined under
U.S. federal securities laws. These statements, which speak only as of the date
given, are subject to certain risks and uncertainties that could cause actual
results to differ materially from our Company's historical experience and our
present expectations or projections. These risks include, but are not limited
to, our ability to finance expansion plans, share repurchase programs and
general operating activities; changes in the non-alcoholic beverages business
environment, including actions of competitors and changes in consumer
preferences; regulatory and legal changes; fluctuations in the cost and
availability of raw materials; interest rate and currency fluctuations; changes
in economic and political conditions; our ability to penetrate developing and
emerging markets; the effectiveness of our advertising and marketing programs;
litigation uncertainties; adverse weather conditions; and other risks discussed
in our Company's filings with the Securities and Exchange Commission (the
"SEC"), including our Annual Report on Form 10-K, which filings are available
from the SEC. The Company undertakes no obligation to publicly update or revise
any forward-looking statements.


 The Coca-Cola Company
 First Quarter 2001
 Volume Results

 First Quarter 2001
 ` vs.
 First Quarter 2000
 Unit Case Volume
 % Change

 Worldwide 4

 North America 1
 United States 1
 Latin America 3
 Argentina 14
 Brazil 5
 Central America & Caribbean 9
 Chile (1)
 Mexico 1
 Europe, Eurasia and Middle East 4
 Germany (4)
 Spain 2
 Eurasia (includes Turkey) (14)
 Middle East 12
 Africa 10
 North and West 10
 Southern and East 9
 Asia 10
 China 16
 India 12
 Japan 1

SOURCE The Coca Cola Company


CONTACT: Ben Deutsch of The Coca-Cola Company, 404-676-2683

URL: http://www.coke.com
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