<div><p>CHICAGO (Reuters) - Coca-Cola Co <KO.N> reported stronger-than-expected quarterly sales as higher demand for its beverages in China, India and Brazil offset a drop in North America, sending the world's largest soft-drink maker's shares up 3.3 percent.</p><p>Lower costs and volume gain helped lift profit, which was in line with analysts' estimates. The company gained market share in the carbonated and noncarbonated drinks markets.</p><p>Results continued a trend for the maker of Diet Coke, Sprite and Dasani water, which has relied on strength overseas to counter a weak North American market that is beset by high unemployment and low consumer confidence.</p><p>"This continues to be a story about emerging market growth," Morningstar analyst Phil Gorham said.</p><p>He noted "some really strong numbers in China and India, particularly when you (consider) that they are actually cycling a pretty strong quarter in '08."</p><p>Still, Coke gave a tepid outlook for the current year.</p><p>"With consumers still challenged by a mixed global recovery, there again may be bumps along the way with quarter-to-quarter volatility still possible as we move through 2010," Coke Chief Executive Muhtar Kent said on a conference call.</p><p>Coca-Cola said net income attributable to shareholders rose to $1.54 billion, or 66 cents per share, from $995 million, or 43 cents per share, a year earlier.</p><p>Analysts on average were expecting 66 cents per share, according to Thomson Reuters I/B/E/S.</p><p>Net operating revenue rose 5 percent to $7.51 billion, topping analysts' average forecast of $7.22 billion.</p><p>Sales by volume -- an important measure for investors to gauge Coke's performance -- rose 5 percent, outpacing gains of 2 percent in the third quarter, 4 percent in the second quarter and 2 percent in the first quarter.</p><p>Several analysts, including Stifel Nicolaus's Mark Swartzberg, were expecting volume to grow about 2 percent.</p><p>CHINA DRIVES GROWTH</p><p>Fourth-quarter volume rose 11 percent in the Pacific region, driven by a 29 percent increase in China, where Coke said it will continue to focus on generating double-digit annual growth rates.</p><p>"The per capitas (consumption rates) are still so low in China. We're just getting started, but again, it takes a lot of investment, a lot of effort to generate a quarter of a billion cases of incremental growth a year in China," Kent said.</p><p>Quarterly volume rose 7 percent in Latin America, 1 percent in Europe and 5 percent in the company's Eurasia and Africa division.</p><p>Volume fell 1 percent in the closely watched North American market because of continued pressure on consumer spending and weak traffic to restaurants. Still, that decline was smaller than the third quarter's 4 percent decline and JP Morgan analyst John Faucher's expectation for a 2 percent decline.</p><p>Coke's rivalry with PepsiCo Inc <PEP.N> is poised for a new turn this year, as the No. 2 soft-drink maker is about to complete its planned acquisition of its largest bottlers, Pepsi Bottling Group Inc <PBG.N> and PepsiAmericas Inc <PAS.N>.</p><p>Kent has repeatedly expressed his commitment to his company's decentralized, franchise bottling model.</p><p>Coke's carbonated beverage unit case volume increased 3 percent in the quarter, with international carbonated beverage unit case volume increasing 5 percent, cycling 4 percent growth in the prior year quarter.</p><p>Total noncarbonated beverage unit case volume increased 9 percent, driven by growth across a portfolio that includes juices and fruit drinks, teas and water brands. Still, beverage unit case volume jumped 14 percent internationally but was flat in North America.</p><p>Coca-Cola shares rose $1.72 to $54.37 on the New York Stock Exchange.</p><p>(Reporting by Brad Dorfman with additional reporting by Martinne Geller and Jessica Wohl; Editing by Derek Caney, Maureen Bavdek, Dave Zimmerman and Robert MacMillan)</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68755522&bid=informcom" /></div><div id="copyright"><div>

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