NEW YORK (AP) — Shares of Coca-Cola Enterprises Inc. fell Tuesday after the independent bottler warned that economic factors have "dampened" its fiscal second-quarter expectations.
THE SPARK: The Atlanta-based company, which bottles and distributes Coca-Cola Co. drinks in Europe, cited "persistent underlying macroeconomic weakness," bad weather and the ongoing impact of a tax in France for the bleaker outlook. It also cited competitive climate in the United Kingdom.
"Though we expect some of these challenges to abate as we move through the year, we will better understand the full-year impact of these factors as we move deeper into the prime summer selling season," said CEO John Brock.
The company said it would provide an update on its outlook for the rest of the year during its second-quarter earnings call July 25.
THE BIG PICTURE: At a Deutsche Bank conference on Tuesday, Brock said the "biggest issue" the company was dealing with is the weather. He noted that this year has brought the coldest and wettest summer in 100 years in Europe. That's tough on the company because soft drink sales typically spike during the warm summer months.
During the conference presentation, the company nevertheless expressed optimism for long-term growth, saying that it has overcome difficult challenges in the past.
SHARE ACTION: Shares of Coca-Cola Enterprises were down $1.22, or 3 percent, at $35.94.