Coke changes currency impact outlook to ‘headwind’ from ‘tailwind’
Coca-Cola Co. said Wednesday that it now expects currency translation to hurt comparable revenue this year rather than help, in the wake of a rally in the U.S. dollar over the past couple months. The beverage giant said it expects a currency headwind in the range of 0% to 1% for both the second quarter and the full year, compared with the company’s April 24 guidance of a tailwind of 1% for both periods. For second-quarter comparable operating income, Coke now expects a 2% headwind versus previous expectations of a 1% headwind. The change follows a 3.3% surge in the ICE U.S. Dollar Index since April 24. Separately, Coke affirmed its 2018 outlook for organic revenue growth of 4% and adjusted earnings-per-share growth of 8% to 10%. The stock, which was still inactive in premarket trade, has slipped 0.4% over the past three months while the Dow Jones Industrial Average has gained 1.3%.