Coca-Cola Enterprises Affirms 2013 Comparable EPS View; Provides 2014 Guidance

(RTTNews) - Coca-Cola Enterprises Inc. (CCE) said it affirmed comparable earnings per share guidance for full-year 2013 at the high end of the previously stated range of $2.45 to $2.50, including a positive 2 percent currency impact at recent rates.

Including this currency impact, the company continues to expect comparable full-year net sales and operating income to grow in a low single-digit range versus prior year.

The company expects 2013 free cash flow of approximately $500 million after including a year-over-year increase in cash restructuring expenses in a range of $100 million to $125 million. Capital expenditures are expected to be in a range of $300 million to $325 million.

Analysts polled by Thomson Reuters expect the company to report earnings of $2.50 per share and revenues of $8.20 billion for fiscal 2013. Analysts' estimates typically exclude special items.

"While we have seen some operating headwinds moderate, we expect underlying challenges to continue and impact growth in 2014. As a result, our expectations for next year are modestly below our long-term operating growth targets," said John Brock, chairman and chief executive officer.

The company said it began a $1.5 billion share repurchase program in January 2013 and will repurchase approximately $1 billion of its shares this year. The Board of Directors has approved a new $1 billion share repurchase program - this is the fourth program since the 2010 transaction that created the new CCE. The company plans approximately $800 million in repurchases in 2014.

For 2014, CCE expects earnings per share to grow approximately 10 percent on a comparable and currency neutral basis. Although too early to predict the impact, based on recent rates, currency translation would benefit full-year 2014 earnings per share in a range of 3 percent to 4 percent.

Net sales are expected to grow in a low single-digit range and operating income is expected to grow in a mid-single-digit range. This outlook is comparable and currency neutral.

The company also expects 2014 free cash flow in a range of $600 million to $650 million. Capital expenditures are expected to be approximately $350 million.

Street currently is looking for fiscal year 2014 earnings of $2.83 per share on annual revenues of $8.60 billion.