Reported by Star-Bulletin staff & wire
Friday, September 25, 1998
Coca-Cola expects earnings to be flat
ATLANTA -- Coca-Cola Co., the world's largest beverage company, forecast lower-than-expected earnings for the rest of 1998 as sales slow because of currency and economic woes in Asia, Latin America and eastern Europe.Coca-Cola's shares, which have lost $80 billion in market value in two months, fell 44 cents to $56.25 in trading on the New York Stock Exchange, according to Bloom-berg News.
Coca-Cola estimated third-quarter earnings of 35 cents a share, equal to the 35 cents a year earlier. Atlanta-based Coke also said a strong U.S. dollar will push fourth-quarter earnings below the 32 cents it earned in last year's final quarter.
The company was expected to earn 39 cents in the third quarter, according to a survey of analysts by First Call Corp., and 36 to 37 cents in the fourth quarter.
Coca-Cola gets 70 percent of its sales and three-fourths of profits from international markets.
Russian economy hit with 2 more setbacks
MOSCOW -- Despite Russia's pleas for cash, an International Monetary Fund team wrapped up a visit today without recommending that Moscow receive the next installment on a $22.6 billion loan package.In a further sign of trouble for the new government, the top economic official announced today that he would resign, less than two weeks after being named to his post, the Interfax news agency reported. Alexander Shokhin, the deputy prime minister in charge of economic policy, said he could not remain in government if Mikhail Zadornov, who served in previous administrations, kept his job as finance minister.
The government announced today that Zadornov would stay. Shokhin accused Zadornov of deceiving investors and said the official's lack of professionalism jeopardized negotiations with international financial organizations.
Russia needs the IMF money to help stabilize an economy wracked by surging inflation, rising unemployment and a falling currency.
But the IMF team left without agreeing to release additional money and will return for further negotiations on Oct. 12, the Interfax news agency reported.
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