Coca-Cola Bottling Co. Consolidated Reports 2007 Results
These costs, which were announced in the first quarter of 2007, resulted from the streamlining of the Company’s management structure and reduction in workforce in order to improve operating efficiencies across the Company’s business.
28/02/08 Coca-Cola Bottling Co. Consolidated announced it earned $19.9 million, or basic net income per share of $2.18, in 2007 compared to $23.2 million, or basic net income per share of $2.55, in 2006. The Company lost $1.8 million, or basic net loss per share of $.19, in the fourth quarter of 2007 compared to net income of $8.6 million, or basic net income per share of $.94, in the fourth quarter of 2006.
The Company’s 2007 net income included $1.7 million after tax ($2.8 million on a pre-tax basis), or $.18 basic net income per share, of restructuring costs. These costs, which were announced in the first quarter of 2007, resulted from the streamlining of the Company’s management structure and reduction in workforce in order to improve operating efficiencies across the Company’s business. Net income in the fourth quarter of 2006 included the favorable impact of $4.9 million, or basic net income per share of $.54, related to reduced income tax expense resulting from the settlement of tax positions with certain states.
J. Frank Harrison, III, Chairman and CEO, said, “In 2007 we continued to face unprecedented challenges in raw material costs, energy costs and consumer refreshment choices. To meet these challenges we focused on improving our efficiency and effectiveness especially in our supply chain management operations. While 2007 was challenging, we continue to be very encouraged about the product innovation opportunities within the still beverage category. During 2007, we introduced smartwater, vitaminwater, FUZE, NOS energy products, V8 juice products, Gold Peak tea, Country Breeze tea, Respect and Tum-E Yummies. Innovation of new brands and packages will continue to be critical to the overall revenue of the Company.”
William B. Elmore, President and COO, added, “We continue to focus our energy on resource efficiency and improving the execution of our business operations. We were pleased to hold our operating expenses flat during a period of significant portfolio innovation despite the significant increase in raw materials, primarily aluminum packaging, sweetener and concentrate. In addition, we continued to accomplish our debt reduction goals as we were able to reduce debt, net of cash, by approximately $38 million. We look forward to an exciting 2008 and the anticipated benefits from new product innovations across a number of product categories.”
