20400512 Entry 7

Coca-Cola Enterprises earnings tumble
The bottling company says profit fell 47% on higher commodity costs despite a 7% rise in revenue; results miss expectations.

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Coca-cola as stated in the headline had a rise in revenues but a decrease in profit. In the article, it states the fact that the sales in North America hasn't been that good and it is "flat" on the scale. Although it has risen in Europe, most of the consumption of Coke is done in North America and if North America does not sell than I would think that naturally profit would decrease. Also in the article it states that the increase in prices of other assets has led to the downfall of profit. When i read this article I would say there is really nothing that Coca-cola could do in order to increase their profit other than to hope that overseas sales go up rapidly. They coudl only wait for the other prices to go down. Even with R&D, I do not think a solution could be made up.