worse than it looks..market talk

MARKET TALK: Coca-Cola 1H Worse Than It Looks - ABN AMRO 10/08/06 13:03:00

1303 [Dow Jones] STOCK CALL: ABN AMRO says Coca-Cola Amatil's (CCL.AU) 1H
well below expectations. "Momentum appears to be heading in the wrong direction,
with all divisions reporting EBIT results worse or equal to 1H05 with the
exception of South Korea - which was coming from a very low base," broker says.
"Volumes appear to be in decline in all divisions - except Australia -
suggesting either a backlash to price increases to recover COGS or potentially
more long-term structural issues," it adds. Adds SABMiller JV likely only small
positive, overshadowed by more significant events in this result. Also notes
revised FY06 guidance, already downgraded from May, includes sale of Eastern
Creek land taken above the line. ABN says its forecasts and recommendation under
review. CCL last trade A$6.10, down 7.3%.(SVM)

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