Feb. 12 (Bloomberg) -- Coca-Cola Co., the world’s largest soft-drink maker, reported fourth-quarter profit that fell less than analysts estimated after income rose in Europe and costs fell because of improved technology to track sales.

The shares jumped 7.6 percent in New York trading after Coca-Cola reported earnings of 64 cents a share, excluding a writedown tied to its distribution business. That beat the 61- cent average of analysts’ estimates compiled by Bloomberg. The volume of drinks sold rose 4 percent, led by gains in India, Mexico and China, the Atlanta-based company said today.

Coca-Cola cut costs across all areas of business to counter falling demand for soft drinks in North America, its largest market, while the stronger dollar reduced operating profit by 9 percent. Chief Executive Officer Muhtar Kent reiterated his goal of saving $500 million a year by the end of 2011.

“Most companies today realize sales are tough to come by, so to reach your profit objectives, you’ve got to take costs out of the business,” Jack Russo, an analyst at Edward Jones Co. in St. Louis, said today in a telephone interview.

Coca-Cola reviewed its business in more than 200 countries last year to find ways to trim costs. Executives have since reduced the thousands of reports that stream into corporate headquarters, weeded out unused legal entities to ease the workload of its finance staff and cut unnecessary jobs. The sales and financial-reporting network is being brought under a common computer system.

Cut Sales Meetings

The company also pared the number of sales meetings to give employees more time to meet with retailers, food-service buyers and distributors, Kent said today during a conference call.

“We’re much closer to the marketplace today,” Kent said.

Operating profit in Europe grew 14 percent as the company sold more beverages in Germany, France and the U.K.

“To see their volumes up as strong as they were internationally is a pretty good sign,” Russo said.

International markets haven’t been immune to the global consumer slowdown, Kent said. Drinks sales in Russia declined 8 percent. North American volume fell 3 percent.

Net income dropped to $995 million, or 43 cents a share, from $1.21 billion, or 52 cents, a year earlier after Coca-Cola’s largest distributor wrote down the value of its North American business. Revenue fell to $7.13 billion. Analysts predicted sales of $7.58 billion, on average, according to data compiled by Bloomberg.

Coca-Cola Enterprises

Distributor Coca-Cola Enterprises Inc. reported a fourth- quarter loss yesterday after market conditions and the company’s falling stock price led to a $2.3 billion writedown. Its shares rose 9.6 percent to $13.10 after profit excluding the writedown exceeded analysts’ estimates.

Coca-Cola, which owns 35 percent of the distributor, advanced $3.12 to $44.39 at 4 p.m. in New York Stock Exchange composite trading. The stock has declined 1.9 percent this year, compared with a 5.1 percent drop for PepsiCo Inc., the world’s No. 2 soda maker. PepsiCo reports results tomorrow.

The cost cuts won’t affect marketing spending this year, Joe Tripodi, Coca-Cola’s chief marketing officer, said Jan. 21. The company will boost spending across all of its brands, he said, declining to provide financial details.

To contact the reporter on this story: Duane D. Stanford in Atlanta dstanford2@bloomberg.net.

Last Updated: February 12, 2009 16:04 EST