Coca-Cola profit slightly better than expected

Coca-Cola Co reported a slowdown in sales in North America, but still posted slightly better-than-expected earnings on Tuesday on strength in emerging markets.

The world's largest soft-drink maker, with brands including Sprite, vitaminwater and Powerade, does the majority of its business outside the United States -- an asset that has kept it in favour with investors despite home market struggles, where anemic jobs growth has dulled sales of soft drinks.

Coke Chief Executive Officer Muhtar Kent, speaking on CNBC, said the economic recovery was "mixed" and that consumers remain "confused." Demand for consumer products, including soft drinks, are influenced by the economy and unemployment. U.S. jobs growth ground to a near halt in June.

Atlanta-based Coke reported net income of $2.80 billion, or $1.20 per share for the second quarter, that ended on July 1, up from $2.37 billion, or $1.02 per share, a year earlier.

Excluding one-time items, earnings were $1.17 per share, topping analysts' average estimate, according to Thomson Reuters I/B/E/S, by a penny.

Revenue jumped 47 percent to $12.74 billion, fuelled by last year's purchase of Coca-Cola's North American bottling operations, price increases and a 6 percent benefit from foreign exchange rates.

Analysts were expecting revenue of $12.38 billion.

The company said the integration of its bottler was progressing on plan, with 2011 cost savings expected to range from $140 million to $150 million. In addition, the company said its productivity initiatives were on track to slightly exceed its expectations for annual savings of $400 million to $500 million by the end of 2011.

Worldwide volume in the quarter was up 6 percent. North American volume, excluding new cross-licensed brands such as Dr Pepper, was flat. That compares with gains of 2 percent in the first quarter, 3 percent in the fourth quarter and 2 percent in the third quarter.

Volume rose 6 percent in Latin America, 5 percent in Europe, 7 percent in the Eurasia and Africa segment and 7 percent in the Pacific region.

Coke shares, which closed at $67.12 on the New York Stock Exchange on Monday, were up 1 percent at $67.80 in light pre-market trading.

(Reporting by Martinne Geller; Editing by Lisa Von Ahn and Maureen Bavdek)