The firm, Coca-Cola's main bottler in North America and Western Europe, said earnings per share were expected to fall between five and 10 per cent in 2007, compared to last year.
It is a prediction that follows Coca-Cola Enterprises (CCE) decision to axe more than 3,000 jobs, and re-iterates the firm's struggle to realign its business with consumer demand.
CCE global revenues rose five per cent for the quarter to $4.56bn, thanks to more strong performances from juice, water and sports drinks in North America, and the expansion of Coke Zero into France and the Netherlands.
But volumes declined four per cent in North America, CCE said, as consumers continued to leave full sugar, fizzy soft drinks on the shelves. It also faced "great challenges" in the UK.
Renaming the fizzy drinks category 'sparkling beverages', instead of the traditional 'carbonated', has not paid off yet.
John Brock, CCE chief executive, admitted earlier this year the group was heavily dependent on carbonated soft drinks" in Europe when most growth was in other sectors, like tea, water and juice.
Rising prices for aluminium and sweeteners have hardly helped the situation in the first quarter of 2007, raising CCE's cost of sales per case by seven per cent in North America. More cost increases are expected throughout the year.
And this as CCE begins a major restructuring drive, expected to cost around $300m over 2007 and 2008. One trade union representing 14,000 CCE workers, Teamsters, has threatened to strike over plans to cut jobs.
Brock made clear he saw 2007 as a transition year for the bottler, and was looking for "renewed growth beginning in 2008".
He said restructuring plans were on track, and also highlighted new products coming to the Coca-Cola portfolio, which should also help out CCE.
He said there was "an aggressive schedule of product initiatives, such as Diet Coke Plus, Vault Red Blitz, and the expansion of Coca-Cola Zero in Europe".
