Coca-Cola Falls Short Due to Currency Effects

Currency exchange rates cost the company 2% on comparable net revenues and 4% on operating income for the quarter. On a constant currency basis, first-quarter operating income rose 5%.

The company’s CEO said:

I am pleased with our first quarter performance results, having once again delivered solid growth against the backdrop of a still uncertain global economy.

Worldwide the company’s volume grew 4%, but that did not translate into profits or revenues, both of which were down.

For the full year, Coca-Cola expects currency translation to have an overall impact of negative 2% on the company’s operating income.

Operationally, cost of goods was fell 1%, compared with the same period a year ago.The company continues to expect commodity costs to rise by $100 million in the 2013 fiscal year.

Coca-Cola’s shares are up nearly 3% in premarket trading, at $41.25 in a 52-week range is $35.58 to $41.41. Thomson Reuters had a consensus analyst price target of around $42.90 before today’s report.