Coke Net Rises 66.1%; Stock Offering Cited

Coca-Cola Co. on Thursday posted a 66.1% surge in fourth-quarter earnings over the same period a year earlier, largely due to sales from the initial public offering of stock in its bottling operations.

The beverage, foods and entertainment giant earned $314.5 million in the final three months of 1986, compared to $189.4 million in the same period in 1985. Revenue rose 10.9% to $2.15 billion in the fourth quarter from $1.94 billion in the fourth-quarter of 1985.

The fourth-quarter results included a $375 million non-cash gain resulting from the sale of 51% of the stock of Coca-Cola Enterprises Inc., which Coca-Cola formed to manage its domestic bottling operations.

The gain represented the difference between what Coca-Cola’s remaining interest in the bottling operation was worth after the stock offering and the historical book value of the company’s interest in the operation.

That gain was partly offset by a $180-million non-cash charge relating to a restructuring of its domestic soft drink business and the company’s disinvestment in South Africa.

For the year, Coca-Cola reported that profit rose 29.4% to $934.3 million, compared to $722.3 million a year earlier.

The 1986 results included the $375-million stock sale gain and the $180-million restructuring and disinvestment charge. The 1985 results included $44.7 million in income from operations that have been discontinued.

Revenue for the year rose 20.2% to $8.67 billion, compared to $7.21 billion a year earlier.

The company said worldwide soft drink unit volume increased 10% for the year.

Operating income in the entertainment division rose 46% to $235 million for the year, chiefly because of success in television syndication.