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BUSINESS A25
Thursday 22 October 2015

Coco-Cola’s profit hit by strong dollar and repositioning

CANDICE CHOI crease in non-carbonated ills like diabetes. But more marketing the more petite Soda is still Coke’s big-
AP Food Industry Writer drinks, which Coke refers to recently, diet sodas have sizes more aggressively as gest business, and account-
NEW YORK (AP) — Coco- as “still” beverages, and a been falling at a steeper part of a push to position its ed for nearly three-quarters
Cola’s profit fell in the third 2 percent increase in spar- rate, a trend Coke blames drinks as more premium of- of its global sales volume
quarter as the world’s big- kling” drinks, which primar- on concerns people have ferings. The idea is to push last year. But its growth is
gest drink maker booked ily refers to sodas. about the safety of artificial up sales, while accom- coming mostly from non-
charges related to its push In North America, soda sweeteners. modating people’s desire carbonated drinks.
to slash costs and reposition volume declined again, Kathy Waller, Coke’s chief to drink less soda. In the Earlier this month, PepsiCo
its business. The strong dol- as Diet Coke fell 9.5 per- financial officer, said in a meantime, Coke’s drop CEO Indra Nooyi also not-
lar also ate into its results. cent and regular Coke fell phone interview the com- in soda volume for North ed in a call with investors
The maker of Sprite, Fan- 3 percent. For years now, pany is trying to figure out America was offset by a 7 that growth in the bever-
ta and Dasani water said people in the U.S. have how much of the declines percent increase in non- age industry is being driven
Wednesday that global been moving away from in diet sodas for North carbonated drinks. Bottled by non-carbonated drinks.
sales volume rose 3 per- sugary sodas, which have America are being driven waters and sports drinks “I think focusing just on (so-
cent in the period. That been blamed for fueling by the shift to smaller cans each rose 10 percent in the das) is actually a thing of
reflected a 6 percent in- obesity rates and related and bottles. Coke has been quarter, Waller said. the past,” Nooyi said.q

GM overcomes huge recall costs to post healthy 3Q profit

Final trim is installed on a Buick Verano at the Orion Assembly in Orion Township, Mich. General still was $1.36 billion, or 84 North American margins by
Motors’ third-quarter profit fell slightly, but the company rode strong North American sales to over- cents per share. That com- next year, but Stevens said
come $1.5 billion in costs from its deadly ignition switch recall, GM announced, Wednesday, Oct. pares with $1.38 billion, or GM will achieve the target
21, 2015. 81 cents per share, a year in 2015, a year early.
ago. Revenue from July through
(AP Photo/Carlos Osorio) Without the recall costs, September fell 1 percent to
GM would have made a $38.8 billion, but still beat
TOM KRISHER ny rode strong North Ameri- percent in afternoon trad- $1.50 per share, soundly analysts’ forecasts. Almost
AP Auto Writer can sales to overcome ing Wednesday. beating Wall Street expec- three quarters of GM’s
DETROIT (AP) — General $1.5 billion in costs from its The Detroit automaker’s tations. Analysts polled by revenue came from North
Motors’ third-quarter profit deadly ignition switch re- net income slipped 1.4 per- FactSet expected $1.18 America.
fell slightly, but the compa- call. Its shares rose almost 7 cent from a year ago, but per share. In China, GM reported pre-
The company posted a tax income of $463 million,
record $3.3 billion pretax down 4 percent from a
profit in North America year ago, but profit margins
largely on high-profit truck rose from 9.6 percent to 9.8
and SUV sales, more than percent because the com-
offsetting a small decline pany sold more expensive
in China and a loss in South Cadillacs and SUVs. “China
America. has not fallen off the cliff as
The news pushed GM everyone had expected,”
shares up $2.29, or 6.8 per- Stevens said.
cent, to $35.77 in afternoon South America, though, is
trading Wednesday. still the big trouble spot for
Chief Financial Officer GM and other companies.
Chuck Stevens said the The company lost $217 mil-
GM’s North American profit lion in the region, almost
margin, the percent of rev- seven times the loss from a
enue it gets to keep, hit a year ago, and Stevens said
record 11.8 percent for the there isn’t an end in sight to
quarter. The company had economic troubles there.
set a goal of 10 percent q

Faster production of jets pushes up Boeing’s 3Q profits

S. MAYEROWITZ per share. Earnings exclud- of new jets to airlines ac- this quarter last year, 31 expects full year earnings
AP Airlines Reporter ing certain pension ex- counted for 68 percent Dreamliners were delivered to be between $7.65 and
NEW YORK (AP) — Faster penses came to $2.52 per of Boeing’s $25.85 billion to airlines; this year Boeing $7.85 a share. Boeing still
production of commercial share. The results topped in revenue. That also beat delivered 37. has a record backlog of
jets continues to drive prof- Wall Street expectations. Wall Street’s estimates; an- The challenge now for new jet orders: nearly 5,700
its at the Boeing Co., which The average estimate of alysts surveyed by Zacks ex- Boeing is to bring down valued at $426 billion. How-
saw earnings jump 25 per- nine analysts surveyed by pected $24.74 billion. the production cost of the ever, lower fuel prices, a
cent in the third quarter. It Zacks Investment Research In July, August and Sep- long-delayed Dreamliner slowing global economy
also raised its earnings out- was for earnings of $2.22 tember, the aerospace so it can bring in more cash and the possible end of
look for the year. per share. company delivered 199 and maybe, someday, cheap interest rates has
The Chicago-based com- Commercial jet manufac- commercial jets, up from breakeven on the plane led some analysts to ques-
pany on Wednesday post- turing is playing a larger 186 during the same quar- whose development costs tion how much longer this
ed a $1.7 billion net profit, and larger role at Boeing, ter last year. And more of ran over budget. new plane buying spree
up from $1.36 billion during also known for its military those jets are expensive The company raised its will continue and if some of
the same period last year. and space programs. Pay- wide-bodies, such as the outlook for the year by 5 those orders won’t eventu-
Boeing said it earned $2.47 ments from the delivery 787 Dreamliner. During cents a share. Boeing now ally be delivered.q