In Brief
Coca-Cola HBC seen posting 10 pct drop Coca-Cola Hellenic Bottling Comany (CCHBC), the world’s second-largest bottler of Coca-Cola drinks, is seen posting a 10 percent drop in second-quarter net on rising costs and adverse conditions in some of its markets. A Reuters poll of seven analysts produced an average net profit forecast of 176.5 million euros for the second quarter of the year from 196.3 million in 2007. Last month, the Greek bottler cut its 2008 profit guidance, citing adverse weather and consumer sentiment in some of its markets, along with rising costs. CCHBC, 23.3 percent-owned by Coca-Cola, lowered its forecasts for earnings per share for 2008 to 1.37-1.40 euros a share, from 1.46-1.49 euros previously. Volume growth target was also lowered to 6 percent from 7 percent, while operating profit (EBIT) was seen growing 5-7 percent from 11-13 percent previously. The move prompted a series of downgrades from brokerages, while CCHBC’s shares have lost about 40 percent since June 12. Sales volume is seen up 4 percent to 591.1 million cases. CCHBC has said poor weather in Central Europe, Russia and Ukraine and lower consumer spending, mainly in Italy and Romania, led to a low single-digit volume growth in May. (Reuters) Goldenport Holdings ups revenue estimate Goldenport Holdings Inc, a Greek shipowner whose shares trade in London, raised its revenue estimate for the next three years by 15 percent after selling two carriers. Goldenport will receive an estimated $354 million from leasing out its carriers in 2008, 2009 and 2010, the Majuro, Marshall Islands-based company said in a statement distributed by the Regulatory News Service yesterday. The increase, from $308 million, reflects the sale of the carriers Ios and Samos. Samos and Ios were sold in June for profits of $20.3 million and $12.8 million respectively. (Bloomberg) Romanian deficit Romania’s budget deficit may reach 3 percent of gross domestic product next year if the pension budget runs out of cash to fuel planned state pension hikes, the central bank’s chief economist said. The centrist minority government decided last year to almost double pensions via two hikes in 2008 and 2009, sparking concern among economists over their potential impact on Romania’s consumption-driven, overheating economy. Earlier this week, Labor Minister Paul Pacuraru announced plans to speed up the implementation of the increases, starting from November instead of January. (Reuters) Turkish visitors The number of foreign visitors to Turkey rose 19.17 percent year-on-year in June to 3.31 million, the Tourism Ministry said yesterday. The number of tourists in the first half of the year rose 16.36 percent to 10.69 million compared with the same period last year. Tourism is a key source of foreign currency for Turkey, which has a large current account deficit. In May, the number of foreign visitors rose 20.15 percent from a year earlier. Germany sent the highest number of tourists to Turkey in June, making up 16.32 of all tourist arrivals, followed by Russia, with 16.04 percent of foreign visitors. The Mediterranean resort city of Antalya was the top destination for Turkey tourists, drawing 38.79 percent of all foreign arrivals. Turkey’s largest city Istanbul was the second most popular destination. (Reuters)
