Coca-Cola Enterprises Sees 2013 Earnings At High End Of Guidance Range

(RTTNews) - Coca-Cola Enterprises, Inc. (CCE), Europe's largest bottler of Coca-Cola Co. (KO) beverages, on Thursday affirmed its earnings outlook for full-year 2013, stating that it now anticipates earnings to be at the high end of the outlook range. However, the company also provides earnings growth guidance for the full-year 2014, below current Street view.

Additionally, the company's board of directors authorized a new $1 billion share repurchase program, with expected share repurchases of $1 billion in 2013 and $800 million in 2014.

"We are managing each element of our business to drive efficiency and effectiveness as we continue to work through ongoing challenging marketplace and macroeconomic conditions. We remain focused on our most important objective - creating increased value for our shareowners," Chairman and CEO John Brock said in a statement.

The Atlanta, Georgia-based company backed its comparable earnings forecast for fiscal 2013 in a range of $2.45 to $2.50, with results now expected at the high end of the range. Currency translation will increase full-year comparable earnings per share by about 2.0 percent, the company said.

On average, 15 analysts polled by Thomson Reuters expect the company to earn $2.50 per share for the year. Analysts' estimates typically exclude special items.

CCE also maintained its forecast for fiscal 2013 net sales and operating income to grow in a low single-digit range on a currency neutral basis.

The company added that it now expects 2013 free cash flow of about $500 million, with capital expenditures to be in a range of $300 million to $325 million.

Looking ahead to fiscal year 2014, the company said it expects operating growth to be modestly below its long-term targets, citing continued underlying challenges despite moderating of operating headwinds.

It forecasts comparable and currency neutral earnings per share to grow about 10 percent from fiscal 2013, implying comparable earnings of $2.75 per share, based on projected 2013 earnings of about $2.50 per share. Street is currently looking for full-year 2014 earnings of $2.83 per share.

The company noted that net sales for the year is expected to grow in a low single-digit range and operating income is projected to grow in the mid-single-digit range, both on a currency neutral basis.

The company noted that comparable earnings per share would have a 3 to 4 percent positive impact from currency translation.

The company also expects 2014 free cash flow in a range of $600 million to $650 million, and capital expenditures of about $350 million.

"With an outlook for modest category growth in 2014, our business plan is focused on creating additional marketplace opportunities and improving our foundation for long-term growth," said Hubert Patricot, executive vice president and president, European Group.

Looking ahead, the company noted that it will support its core brands with marketing initiatives to continue its successful 'Share a Coke' campaign going into the 2014 World Cup, and boost its marketing programs for summer and the holidays.

The company also looks to further develop its Coke Zero brand and the successful energy portfolio with brand extensions, promotions, and new packaging. It will introduce the 1.75 liter bottle in the U.K. as the new primary large PET package.

Additionally, the company said it will repurchase about $1 billion of its shares in 2013, based on the approved $1.5 billion share repurchase program that began in January 2013. The company's board also approved a new $1 billion share repurchase program, with share repurchases of $800 million planed in 2014.

CCE closed Wednesday's regular trading session at $42.25, up $0.46 on a volume of 1.89 million shares.