| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

News Main Page 
 
 News
 Irish
 European
 International
 Asia-Pacific Business Week
 
 Analysis/Comment

RSS FEED


How to use our RSS feed

 
Web Finfacts

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

We provide access to live business television and business related videos from: Bloomberg TV; The Wall Street Journal; CNBC and the Financial Times. Click image:

Links

Finfacts Homepage

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Search

News : International Last Updated: Dec 19th, 2007 - 13:17:15


Coca-Cola Enterprises to shed 3,500 jobs; Sweetener costs to rise 20% driven by the corn used in producing ethanol fuel
By Finfacts Team
Feb 14, 2007, 06:36

Email this article
 Printer friendly page
Coca-Cola Enterprises, the largest bottler of Coca-Cola, said on Tuesday that it planned to cut about 3,500 jobs, or 5 percent of its global work force, after taking a $2.9 billion impairment charge in 2006.

A fourth-quarter loss was $1.71 billion, or $3.59 a share, the Atlanta-based bottler said in a statement. The job cuts will cost $300 million over the next two years. Profit in 2007 is expected to fall.

The company said it has to contend with large increases in the cost of goods in North America in 2007, primarily for the aluminium used in cans and for high-fructose corn syrup, which is used as a sweetener in soft drinks.

North American raw goods costs, including high-fructose corn syrup and aluminium, will rise 9 percent per case in 2007, compared with an average 2.5 percent increase during the past five years, Coca-Cola Enterprises said. The company depends on North America for two-thirds of sales.

The huge demand for corn that has been prompted by the growing alternative ethanol industry has pushed US prices to near 10-year highs.

“There has been a fundamental change in the sweetener market driven by corn, ultimately driven by the corn used in ethanol,” the chief financial officer, Bill Douglas, said in a conference call.

Sweetener costs will rise at least 20 percent and aluminium cans will go up ``mid-teens,''

Moody’s Investors Service said Tuesday that it might cut its rating for Coca-Cola Enterprises, citing the weak financial results in the fourth quarter and all of 2006. Coca-Cola Enterprises holds an A2 long-term rating, which is the sixth-lowest investment-grade rating.

The company said that it was restructuring parts of its corporate, North American and European operations, but that most of the jobs would be cut in North America.

Coca-Cola Enterprises, said that the impairment charge relates to good will with a number of acquisitions completed more than 10 years ago.


© Copyright 2007 by Finfacts.com

Top of Page

International
Latest Headlines
Markets News Wednesday: Stocks deep in red ink across the globe: Asia-Pacific and Europe slump following grim day in New York
Apple launches MacBook Air - the world’s thinnest notebook
Europe suffered a slowdown in labour productivity in 2007; Rich countries face struggle to achieve rises in living standards
Wednesday Newspaper Review - Irish Business News and International Stories
Intel reports 51% rise in Q4 2007 net income but cautious outlook for 2008 sends shares plunging 14% in after-hours trading
Markets News Afternoon: Citi rains heavily on markets in Europe and US - Dublin plunges almost 4%
US retail sales fell in December signalling that consumer spending is under strain; Producer/Wholesale prices rose 6.3% in 2007 - the highest since 1981
Citigroup reported Q4 2007 loss of $9.83 billion; Write-downs and increased credit costs were a massive $22.2 billion
Markets News Tuesday: Citi bad news awaited; Markets fall in Asia-Pacific and Europe; Dollar up from near record low against Euro; Gold price over $900
Hong Kong and Singapore again head Index of Economic Freedom; Ireland gets third ranking
Tuesday Newspaper Review - Irish Business News and International Stories
US Hedge Fund Index shows return of 11.15% in 2007 - More than double the S&P 500 performance
Markets News Afternoon: Stocks rally in US and Europe boosted by positive fourth quarter data from IBM and SAP
IBM reports strong fourth quarter preliminary earnings boosted by Asia, Europe and Emerging Countries
Markets News Monday: Start of US fourth quarter earnings season has investors worried about how banks and brokerages have performed
Monday Newspaper Review - Irish Business News and International Stories
US study says Environmental Factors shaping New Global Economy
Markets News Afternoon: Report say Merrill Lynch will announce $15bn loss next week; Stocks down in US and Europe - Dublin market up; Gold tops $900
US trade deficit increased to $63.1 billion in November
OECD Composite Leading Indicators signal a downswing in all major OECD economies