Net income was $1.87 billion, or 41 cents a share, compared with $1.66 billion, or 36 cents a share, in the period a year earlier. Revenue rose 4 percent, to $11.46 billion.

But that was not good enough for Wall Street, where the company’s share price fell 2.7 percent, to $37.56.

“In some of the key markets in Europe, sales were down more than expected, and I think that’s got people spooked a bit,” said Jack Russo, a stock analyst at Edward Jones. “Consumers there are in a fragile state, and cold weather was an issue, too.”

Nonetheless, Mr. Russo said, the company reduced costs, which will continue to pay off this year, and commodity prices should be lower.

Muhtar Kent, chief executive of Coca-Cola, noted that it finished last year with record sales, operating income and cash on hand.

“We feel very confident moving forward into 2013 that we will continue to meet expectations as we did in the fourth quarter,” Mr. Kent said. “We have a portfolio of 207 markets, where when large markets, for one reason or the other, don’t perform as well, others continue to do well and help us meet our long-term growth targets.”

Last year, Coke’s sales jumped 16 percent in India and 8 percent in Russia, for example. While revenue from China slipped slightly in the fourth quarter, sales there grew 4 percent for the year.

Revenue from noncarbonated beverages continued to grow much faster than those from fizzy drinks, with tea brands like Gold Peak, Honest Tea and Ayataka, a green tea sold in Japan that became the company’s fifth billion-dollar brand added since 2010, increasing sales by 14 percent for the year. Sales of bottled water, which is less profitable than Coke’s other drinks, also were strong, growing 12 percent in 2012.

For the full year, Coca-Cola, which is based in Atlanta, had $48.03 billion in sales, compared with $46.55 billion in 2011. Profits were $9.2 billion, or $2.01 a share, compared with $8.9 billion, or $1.92 a share, a year earlier.

Article source: http://www.nytimes.com/2013/02/13/business/cokes-profit-rises-in-4th-quarter-but-shares-fall.html?partner=rss&emc=rss