The Coca-Cola (KO) company reported a 16% increase in second quarter net income of $2.4 billion, or $1.02 per share, from $2 billion, or 88 cents per shares, in the same quarter last year. Coke's adjusted earnings per share were $1.06, beating analyst estimates of $1.03 per share.
Revenue grew 5% to $8.7 billion from $8.3 billion, with volume increasing 5%, fueled by investment in the FIFA World Cup sponsorship and the "Open Happiness" global marketing campaign, the company said. The beverage maker also said it is well on track to achieve its target of $500 million in annualized savings by year-end 2011.
"I am pleased with the performance of our Company, where we once again delivered a solid quarter of growth with consistent profitable results inspired by our 2020 Vision and fueled by our strategic marketing, innovation and focused execution," said chairman and CEO Muhtar Kent.
He added, however, that it is clear "that the state of the global economy remains uncertain in many regions, affected by ongoing deficit concerns in Europe, recent downward revisions to China's economy and weakened consumer confidence. [...] Looking forward to the balance of the year, we remain cautious, yet confident in our ability to deliver our 2010 plan while continuing our efforts to achieve our 2020 Vision through consistent long-term profitable growth."
The Dow Jones Industrial member shares climbed about 1% in premarket trading to $53.75.
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