Correcting and Replacing – Coca-Cola Enterprises (CCE) updated its guidance, not The Coca-Cola Company (KO), as the orginal version stated. KO has NOT provided guidance.
Coca-Cola Enterprises (CCE) on Tuesday September 8, 2009, narrowed its annual earnings guidance to the high end of the previously guided range of $1.44 to $1.49 per share. The revision was based on the performance of the company in the third quarter so far.
The guidance excludes one-time items and includes an approximate 15 cent per share of negative currency translation. Management intends to boost sales through continued investment in its brands and new product innovation.
Moreover, during the quarter, the company announced plans to invest an additional $200 million in Vietnam over the next three years. The company has already invested $200 million in its operations, comprising bottling plants near Hanoi, Da Nang and Ho Chi Minh City.
Management at The Coca Cola Company considers Vietnam an important growth market. Moreover, strong performances for the company in emerging markets could also be a major factor behind management’s decision to make investments.
Apart from this, the company and its bottling partner announced a $2 billion, 3-year investment plan in China. This investment is primarily aimed at further strengthening its growth in one of the world’s largest and fastest-growing beverage markets.
Coca Cola has also invested more than $5 billion in Russia, primarily targeted at developing infrastructure, technology, social and environmental programs, marketing programs, training programs and products with special emphasis on employment generation.
The company’s prime competitor, PepsiCo (PEP) also has significant investments in China and Russia, to the tune of $1 billion each.
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Read the full analyst report on “KO”
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