Media Relations Department P.O. Box 1734, Atlanta, GA 30301 Telephone (404) 676-2121 |
The Coca-Cola Company
News
Release
FOR IMMEDIATE RELEASE
CONTACT: | Media: | Ben Deutsch (404) 676-2683 |
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Investors: |
Ann Taylor (404) 676-5383 |
THE COCA-COLA COMPANY REPORTS
FIRST QUARTER 2005 RESULTS
ATLANTA, April 19, 2005—The Coca-Cola Company today reported first quarter earnings per share of $0.42, compared with $0.46 for the prior year first quarter. First quarter earnings per share include a net reduction of $0.05 per share due to an accrual for taxes of $0.06 per share related to the repatriation of foreign earnings and a charge for accelerated amortization of stock-based compensation of $0.02 per share, offset by favorable tax resolutions of $0.02 per share and a gain on the issuance of stock by an equity investee of $0.01 per share.
Neville Isdell, chairman and chief executive officer, commented, "These results reflect our stated intent to step up our investments in marketing, innovation and organizational capability building while effectively managing our portfolio of countries. We are taking the actions necessary to position the Company for future growth. We have now completed a major review of our operational framework under the umbrella of our new Manifesto for Growth. A solid foundation has been laid from which future growth paths will continue to emerge. Our recently announced operational and geographic alignment will reinvigorate our marketing, stimulate innovation and lead to enhanced execution at a local level. We have also put behind us the investigations by the Securities and Exchange Commission and the Department of Justice. We still have much work ahead of us, but I am very confident that we are doing the right things, making good progress, and that our continued emphasis on execution will bring about long-term benefit."
Financial Highlights
Operational Highlights
(All references to unit case volume percentage changes in this section are computed based on average daily sales for the first quarter except as noted.)
Total Company
2
North America
|
Percent Change From Prior Year |
|
---|---|---|
Unit Case Volume | Even | |
Net Revenues | Even | |
Operating Income | (11%) |
Europe, Eurasia and Middle East
|
Percent Change From Prior Year |
|
---|---|---|
Unit Case Volume | (1%) | |
Net Revenues | Even | |
Operating Income | (7%) |
3
Asia
|
Percent Change From Prior Year |
|
---|---|---|
Unit Case Volume | 3% | |
Net Revenues | 8% | |
Operating Income | (2%) |
4
Latin America
|
Percent Change From Prior Year |
|
---|---|---|
Unit Case Volume | 6% | |
Net Revenues | 12% | |
Operating Income | 7% |
Africa
|
Percent Change From Prior Year |
|
---|---|---|
Unit Case Volume | 10% | |
Net Revenues | 28% | |
Operating Income | 7% |
5
Financial Review
Operating Results
Revenues for the quarter increased 4 percent to $5.3 billion versus the prior year quarter, reflecting even gallon sales, positive currency benefit of 4 percent and a 1 percent increase due to structural changes, primarily due to the consolidation of certain bottlers, offset by a net 1 percent unfavorable impact from price and mix.
The following reflects net operating revenues from the Company's operations:
|
First Quarter |
|||||
---|---|---|---|---|---|---|
(in millions) |
2005 |
2004 |
||||
Company Operations, Excluding Bottling | $ | 4,543 | $ | 4,393 | ||
Company-Owned Bottling Operations | 723 | 685 | ||||
Consolidated Net Operating Revenues | $ | 5,266 | $ | 5,078 |
Cost of goods sold increased 3 percent for the quarter versus the prior year quarter, reflecting even gallon sales and a 3 percent increase from currency movements. An increase to cost of goods sold from structural changes was offset by the impact of the volume decline in the Germany bottling operations.
Selling, general and administrative expenses increased 12 percent for the quarter versus the prior year quarter, reflecting the impact of foreign currency fluctuations, structural changes, the planned increase in marketing and innovation activities and higher stock-based compensation expenses. The increase in stock-based compensation expenses of $50 million pre-tax is primarily a result of accelerated amortization due to a change in the estimated service period of retirement eligible associates.
Reported operating income for the quarter declined 6 percent versus the prior year quarter reflecting the impact of the increase in net revenues offset by the stepped up investments in marketing around the world and higher stock-based compensation expenses. In 2005, the Company currently expects to receive a moderate positive benefit from currencies. If currency benefits are realized in 2005, the Company will review opportunities to selectively reinvest those currency benefits into additional marketing programs in 2005 to drive long-term sustainable growth.
Equity income for the quarter decreased slightly in comparison to the prior year quarter. The Company remains committed to maintaining a strong and healthy bottling system throughout the world.
Effective Tax Rate
The reported effective tax rate for the quarter was 30.8 percent. The rate was impacted by several items in the quarter including a $152 million accrual for taxes related to the repatriation of foreign earnings, the tax expense on the issuance of stock by an equity investee recorded at a 37 percent tax rate, partially offset by a $56 million tax benefit from the resolution of tax matters, and an underlying effective tax rate on operations of 24.0 percent.
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The Company has made a decision in the first quarter to repatriate accumulated income earned outside the United States under the provisions of the American Jobs Creation Act (the "Act") and has included an accrual for taxes of $152 million, which represents the estimated tax impact of repatriating approximately $2.5 billion. The maximum amount that the Company can repatriate under the Act is $6.1 billion and the Company will continue to evaluate during the course of the year whether to repatriate the remaining $3.6 billion.
The underlying effective tax rate on operations for the quarter was 24.0 percent, which was lower than the previously communicated 25 percent, due to favorable profit mix from lower taxed locations, where currencies had a positive impact, as well as from tax planning strategies.
In determining the quarterly provision for income taxes, the Company uses an annual effective tax rate based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. The impact of significant or unusual items and discrete events are separately recognized in the quarter in which they occur. The Company currently estimates its underlying effective tax rate on operations for 2005 to be approximately 24 percent, which does not reflect the impact of the Act and significant or unusual items and discrete events, which, if and when they occur, are separately recognized in the appropriate quarter.
Conference Call
The Company will host a conference call with financial analysts to discuss the first quarter 2005 results on April 19, 2005, at 8:00 a.m. (EDT). The Company invites investors to listen to the live audiocast of the conference call at the Company's website, www.coca-cola.com in the "investors" section. Further, the "investors" section of the Company's website includes a disclosure and reconciliation of non-GAAP financial measures that may be used periodically by management when discussing the Company's financial results with investors and analysts.
7
THE COCA-COLA COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(UNAUDITED)
(In millions, except per share data)
|
Three Months Ended March 31, |
||||||||
---|---|---|---|---|---|---|---|---|---|
|
2005 |
2004 |
% Change |
||||||
Net Operating Revenues | $ | 5,266 | $ | 5,078 | 4 | ||||
Cost of goods sold | 1,809 | 1,753 | 3 | ||||||
Gross Profit | 3,457 | 3,325 | 4 | ||||||
Selling, general and administrative expenses | 2,098 | 1,874 | 12 | ||||||
Operating Income | 1,359 | 1,451 | (6 | ) | |||||
Interest income | 60 | 35 | 71 | ||||||
Interest expense | 68 | 44 | 55 | ||||||
Equity income | 91 | 95 | (4 | ) | |||||
Other income (loss)—net | (17 | ) | (25 | ) | — | ||||
Gain on issuances of stock by equity investee | 23 | — | — | ||||||
Income Before Income Taxes | 1,448 | 1,512 | (4 | ) | |||||
Income taxes | 446 | 385 | 16 | ||||||
Net Income | $ | 1,002 | $ | 1,127 | (11 | ) | |||
Diluted Net Income Per Share* | $ | 0.42 | $ | 0.46 | (9 | ) | |||
Average Shares Outstanding—Diluted* | 2,410 | 2,444 | (1 | ) | |||||
8
THE COCA-COLA COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
(UNAUDITED)
(In millions)
Assets
|
March 31, 2005 |
December 31, 2004 |
||||||
---|---|---|---|---|---|---|---|---|
Current Assets | ||||||||
Cash and cash equivalents | $ | 6,965 | $ | 6,707 | ||||
Marketable securities | 61 | 61 | ||||||
7,026 | 6,768 | |||||||
Trade accounts receivable, less allowances of $71 at March 31 and $69 at December 31 | 2,115 | 2,171 | ||||||
Inventories | 1,511 | 1,420 | ||||||
Prepaid expenses and other assets | 1,634 | 1,735 | ||||||
Total Current Assets | 12,286 | 12,094 | ||||||
Investments and Other Assets | ||||||||
Equity method investments: | ||||||||
Coca-Cola Enterprises Inc. | 1,662 | 1,569 | ||||||
Coca-Cola Hellenic Bottling Company S.A. | 1,078 | 1,067 | ||||||
Coca-Cola FEMSA, S.A. de C.V. | 828 | 792 | ||||||
Coca-Cola Amatil Limited | 754 | 736 | ||||||
Other, principally bottling companies | 1,767 | 1,733 | ||||||
Cost method investments, principally bottling companies | 355 | 355 | ||||||
Other assets | 2,979 | 3,054 | ||||||
9,423 | 9,306 | |||||||
Property Plant and Equipment | ||||||||
Land | 480 | 479 | ||||||
Buildings and improvements | 2,874 | 2,853 | ||||||
Machinery and equipment | 6,419 | 6,337 | ||||||
Containers | 494 | 480 | ||||||
10,267 | 10,149 | |||||||
Less allowances for depreciation | 4,204 | 4,058 | ||||||
6,063 | 6,091 | |||||||
Trademarks With Indefinite Lives | 2,043 | 2,037 | ||||||
Goodwill | 1,098 | 1,097 | ||||||
Other Intangible Assets | 701 | 702 | ||||||
Total Assets | $ | 31,614 | $ | 31,327 | ||||
9
THE COCA-COLA COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
(UNAUDITED)
(In millions, except share data)
Liabilities and Shareowners' Equity
|
March 31, 2005 |
December 31, 2004 |
||||||
---|---|---|---|---|---|---|---|---|
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 4,026 | $ | 4,283 | ||||
Loans and notes payable | 4,379 | 4,531 | ||||||
Current maturities of long-term debt | 1,483 | 1,490 | ||||||
Accrued income taxes | 748 | 667 | ||||||
Total Current Liabilities | 10,636 | 10,971 | ||||||
Long-Term Debt | 1,141 | 1,157 | ||||||
Other Liabilities | 2,841 | 2,814 | ||||||
Deferred Income Taxes | 485 | 450 | ||||||
Shareowners' Equity | ||||||||
Common Stock, $0.25 par value Authorized: 5,600,000,000 shares Issued: 3,500,729,866 shares at March 31; 3,500,489,544 shares at December 31 |
875 | 875 | ||||||
Capital surplus | 5,063 | 4,928 | ||||||
Reinvested earnings | 29,432 | 29,105 | ||||||
Accumulated other comprehensive income (loss) | (1,209 | ) | (1,348 | ) | ||||
34,161 | 33,560 | |||||||
Less treasury stock, at cost (1,091,757,264 shares at March 31; 1,091,150,977 shares at December 31) |
(17,650 |
) |
(17,625 |
) |
||||
16,511 | 15,935 | |||||||
Total Liabilities and Shareowners' Equity | $ | 31,614 | $ | 31,327 | ||||
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THE COCA-COLA COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(UNAUDITED)
(In millions)
|
Three Months Ended March 31, |
||||||||
---|---|---|---|---|---|---|---|---|---|
|
2005 |
2004 |
|||||||
Operating Activities | |||||||||
Net income | $ | 1,002 | $ | 1,127 | |||||
Depreciation and amortization | 226 | 213 | |||||||
Stock-based compensation expense | 135 | 101 | |||||||
Deferred income taxes | (5 | ) | (47 | ) | |||||
Equity income or loss, net of dividends | (35 | ) | (53 | ) | |||||
Foreign currency adjustments | 73 | 2 | |||||||
Gains on issuances of stock by equity investees | (23 | ) | — | ||||||
Gain on sales of assets, including bottling interests | (2 | ) | (5 | ) | |||||
Other items | 67 | 83 | |||||||
Net change in operating assets and liabilities | (66 | ) | (261 | ) | |||||
Net cash provided by operating activities | 1,372 | 1,160 | |||||||
Investing Activities | |||||||||
Acquisitions and investments, principally trademarks and bottling companies | (7 | ) | (126 | ) | |||||
Purchases of investments and other assets | (2 | ) | (14 | ) | |||||
Proceeds from disposals of investments and other assets | 15 | 102 | |||||||
Purchases of property, plant and equipment | (165 | ) | (170 | ) | |||||
Proceeds from disposals of property, plant and equipment | 14 | 22 | |||||||
Other investing activities | (14 | ) | 45 | ||||||
Net cash used in investing activities | (159 | ) | (141 | ) | |||||
Financing Activities | |||||||||
Issuances of debt | 20 | 1,466 | |||||||
Payments of debt | (202 | ) | (485 | ) | |||||
Issuances of stock | 9 | 61 | |||||||
Purchases of stock for treasury | (96 | ) | (503 | ) | |||||
Dividends | (660 | ) | (602 | ) | |||||
Net cash used in financing activities | (929 | ) | (63 | ) | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (26 | ) | 58 | ||||||
Cash and Cash Equivalents | |||||||||
Net increase during the period | 258 | 1,014 | |||||||
Balance at beginning of period | 6,707 | 3,362 | |||||||
Balance at end of period | $ | 6,965 | $ | 4,376 | |||||
11
The Coca-Cola Company
First Quarter 2005
Unit Case Volume Results
|
Unit Case Volume Growth (Based on Average Daily Sales) 2005 vs. 2004 % Change |
Reported Unit Case Volume Growth 2005 vs. 2004 % Change |
||||
---|---|---|---|---|---|---|
|
First Quarter |
First Quarter |
||||
Worldwide | 3 | Even | ||||
International Operations | 4 | 1 | ||||
Africa | 10 | 7 | ||||
Asia | 3 | 1 | ||||
Europe, Eurasia and Middle East | (1 | ) | (3 | ) | ||
Latin America | 6 | 4 | ||||
North America Operations | Even | (2 | ) |
Unit case volume growth based on average daily sales is computed by comparing the average daily sales in each of the corresponding periods. Average daily sales for the quarter are the actual unit cases shipped during the quarter divided by the number of days in the quarter.
Reported unit case volume growth is computed by comparing the actual unit cases shipped in the first quarter of 2005 to the actual unit cases shipped in the first quarter 2004. In the first quarter, these amounts are less than the amounts computed on an average daily sales basis because of two fewer shipping days in the first quarter of 2005 as compared to the first quarter of 2004. The difference in days will be partially offset in the fourth quarter of 2005.
12
THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments (In millions)
(UNAUDITED)
First Quarter
|
Net Operating Revenues |
Operating Income |
Income Before Income Taxes |
||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
First Quarter 2005 |
First Quarter 2004 |
% Fav./ (Unfav.) |
First Quarter 2005(2) |
First Quarter 2004 |
% Fav./ (Unfav.) |
First Quarter 2005(1)(2) |
First Quarter 2004 |
% Fav./ (Unfav.) |
||||||||||||||||
North America | $ | 1,589 | $ | 1,594 | (0 | ) | $ | 313 | $ | 353 | (11 | ) | $ | 315 | $ | 354 | (11 | ) | |||||||
Africa | 292 | 229 | 28 | 88 | 82 | 7 | 92 | 82 | 12 | ||||||||||||||||
Asia | 1,105 | 1,022 | 8 | 404 | 413 | (2 | ) | 440 | 433 | 2 | |||||||||||||||
Europe, Eurasia & Middle East | 1,664 | 1,672 | (0 | ) | 526 | 564 | (7 | ) | 527 | 557 | (5 | ) | |||||||||||||
Latin America | 574 | 513 | 12 | 280 | 262 | 7 | 316 | 293 | 8 | ||||||||||||||||
Corporate | 42 | 48 | (13 | ) | (252 | ) | (223 | ) | (13 | ) | (242 | ) | (207 | ) | (17 | ) | |||||||||
Consolidated | $ | 5,266 | $ | 5,078 | 4 | $ | 1,359 | $ | 1,451 | (6 | ) | $ | 1,448 | $ | 1,512 | (4 | ) |
13
The Company reports its financial results in accordance with generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP performance measures and ratios used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability due to the fact that these items do not represent results from the fundamental operations of the Company. See the Table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2005 and March 31, 2004. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.
14
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
First Quarter
(UNAUDITED)
(In Millions, except per share data and margins)
|
Three Months Ended March 31, 2005 |
Three Months Ended March 31, 2004 |
|
|
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Items Impacting Comparability |
|
|
|
|
|
% Change— After Considering Items (Non-GAAP) |
|||||||||||||||||||||||
|
Reported (GAAP) |
Issuances of Stock by Equity Investees |
Resolution of Tax Matters |
Repatriation of Foreign Earnings |
Accelerated Amortization of Stock-Based Compensation |
After Considering Items (Non-GAAP) |
Reported (GAAP) |
Items Impacting Comparability |
After Considering Items (Non-GAAP) |
% Change— Reported (GAAP) |
|||||||||||||||||||||
Net Operating Revenues | $ | 5,266 | $ | 5,266 | $ | 5,078 | $ | 5,078 | 4 | 4 | |||||||||||||||||||||
Cost of goods sold | 1,809 | 1,809 | 1,753 | 1,753 | 3 | 3 | |||||||||||||||||||||||||
Gross Profit | 3,457 | 3,457 | 3,325 | 3,325 | 4 | 4 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 2,098 | $ | (50 | ) | 2,048 | 1,874 | 1,874 | 12 | 9 | ||||||||||||||||||||||
Operating Income | 1,359 | 50 | 1,409 | 1,451 | 1,451 | (6 | ) | (3 | ) | ||||||||||||||||||||||
Interest income | 60 | 60 | 35 | 35 | 71 | 71 | |||||||||||||||||||||||||
Interest expense | 68 | 68 | 44 | 44 | 55 | 55 | |||||||||||||||||||||||||
Equity income | 91 | 91 | 95 | 95 | (4 | ) | (4 | ) | |||||||||||||||||||||||
Other income (loss)—net | (17 | ) | (17 | ) | (25 | ) | (25 | ) | |||||||||||||||||||||||
Gain on issuances of stock by equity investees | 23 | $ | (23 | ) | — | — | — | — | — | ||||||||||||||||||||||
Income Before Income Taxes | 1,448 | (23 | ) | 50 | 1,475 | 1,512 | 1,512 | (4 | ) | (2 | ) | ||||||||||||||||||||
Income taxes | 446 | (8 | ) | $ | 56 | $ | (152 | ) | 12 | 354 | 385 | 385 | 16 | (8 | ) | ||||||||||||||||
Net Income | $ | 1,002 | $ | (15 | ) | $ | (56 | ) | $ | 152 | $ | 38 | $ | 1,121 | $ | 1,127 | $ | 1,127 | (11 | ) | (1 | ) | |||||||||
Diluted Net Income Per Share | $ | 0.42 | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.06 | $ | 0.02 | $ | 0.47 | $ | 0.46 | $ | 0.46 | (9 | ) | 2 | ||||||||||
Average Shares Outstanding—Diluted | 2,410 | 2,410 | 2,410 | 2,410 | 2,410 | 2,410 | 2,444 | 2,444 | (1 | ) | (1 | ) | |||||||||||||||||||
Gross Margin | 65.6 | % | 65.6 | % | 65.5 | % | 65.5 | % | |||||||||||||||||||||||
Operating Margin | 25.8 | % | 26.8 | % | 28.6 | % | 28.6 | % | |||||||||||||||||||||||
Effective Tax Rate | 30.8 | % | 24.0 | % | 25.5 | % | 25.5 | % |
Note: Items to consider for comparability include primarily charges, gains, and accounting changes. Charges and accounting changes negatively impacting net income are reflected as increases to reported net income. Gains positively impacting net income are reflected as deductions to reported net income.
15
The Company reports its financial results in accordance with generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP performance measures and ratios used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability due to the fact that these items do not represent results from the fundamental operations of the Company. See the Table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2005 and March 31, 2004. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
Operating Income, by Segment
First Quarter
(In Millions)
|
Three Months Ended March 31, 2005 |
Three Months Ended March 31, 2004 |
|
|
||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Items Impacting Comparability |
|
|
Items Impacting Comparability |
|
|
|
||||||||||||||
|
|
|
|
|
|
% Change- After Considering Items (Non-GAAP) |
||||||||||||||||
|
Reported (GAAP) |
Accelerated Amortization of Stock-Based Compensation |
After Considering Items (Non-GAAP) |
Reported (GAAP) |
|
After Considering Items (Non-GAAP) |
% Change- Reported (GAAP) |
|||||||||||||||
OPERATING INCOME | ||||||||||||||||||||||
North America | $ | 313 | $ | 12 | $ | 325 | $ | 353 | $ | 353 | -11 | % | -8 | % | ||||||||
Africa | 88 | 3 | 91 | 82 | 82 | 7 | % | 11 | % | |||||||||||||
Asia | 404 | 5 | 409 | 413 | 413 | -2 | % | -1 | % | |||||||||||||
Europe, Eurasia and Middle East | 526 | 4 | 530 | 564 | 564 | -7 | % | -6 | % | |||||||||||||
Latin America | 280 | 4 | 284 | 262 | 262 | 7 | % | 8 | % | |||||||||||||
Corporate | (252 | ) | 22 | (230 | ) | (223 | ) | (223 | ) | -13 | % | -3 | % | |||||||||
Consolidated | $ | 1,359 | $ | 50 | $ | 1,409 | $ | 1,451 | $ | 1,451 | -6 | % | -3 | % | ||||||||
16
The Coca-Cola Company
The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola, recognized as the world's most valuable brand, The Coca-Cola Company markets four of the world's top five soft drink brands, including Diet Coke, Fanta and Sprite, and a wide range of other beverages, including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1 billion servings each day. For more information about The Coca-Cola Company, please visit our website at www.coca-cola.com.
Forward-Looking Statements
This press release may contain statements, estimates or projections that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company's historical experience and our present expectations or projections. These risks include, but are not limited to, changes in economic and political conditions, including civil unrest and product boycotts; changes in the nonalcoholic beverages business environment, including actions of competitors and changes in consumer preferences, including changes based on health and nutrition considerations and obesity concerns; foreign currency and interest rate fluctuations and other capital and financial market conditions; adoption of mandatory deposit, recycling, eco-tax and/or product stewardship laws or regulations; adoption of significant additional labeling or warning requirements; changes in commercial or market practices and business models within the European Union; litigation uncertainties; adverse weather conditions; the effectiveness of our advertising and marketing programs; fluctuations in the cost and availability of raw materials or necessary services; our ability to avoid production output disruptions; our ability to effectively align ourselves with our bottling system; regulatory and legal changes; our ability to penetrate developing and emerging markets; the availability and quality of water; our ability to achieve earnings forecasts; and other risks discussed in our Company's filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements.
# # #
17