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Coca-Cola reported a fourth-quarter profit that matched Wall Street’s expectations as strong volume in China, India and Brazil offset a decline in North America. Lower costs and market share gains in both the carbonated and noncarbonated segments helped too.

Coke’s growth in the developing markets — fourth-quarter volume rose 7 percent in Latin America and 11 percent in the Pacific region — helped offset a 1 percent volume decline in the closely watched North American market. Volume was up 1 percent in Europe.

Also in the basket:

McDonald’s January same-store sales up 2.6 pct

Toyota adds new Prius to global recall list

Swatch Group sees sales pick-up, aims for record year

Molson Coors Q4 profit misses estimates

Warner Music falls to loss, but beats Street

(Reuters photo)

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Toymaker Hasbro had a stellar fourth quarter, handily beating Wall Street’s expert forecasts, and said it expected its streak to continue in 2010. Hasbro got a lift from toys tied in with the hit “Transformers” movie and is expected to get even more help from characters such as Elmo, Cookie Monster and Big Bird under a 10-year deal signed last month with the Sesame Workshop.

On the other hand, drugstore chain CVS Caremark also reported better than expected profits ,but its sales fell short of Wall Street. Still, CVS did much better at its stores open at least a year than rival Walgreen, which posted back to back sales drops in December and January.

Also in the basket:

- Barnes & Noble’s Nook finally in stores this week
- Zale hoping for some love on Valentine’s Day

(Reuters photo)

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McDonald sat down with Reuters correspondent Jessica Wohl and talked about how his biggest concern is the possibility that President Barack Obama’s administration could choke off corporate growth by imposing taxes on companies’ foreign earnings.

“I am really worried about the United States … more worried than I’ve ever been in my career,” McDonald said at his company’s Cincinnati headquarters. “I worry about the deficit, I worry about an uncertain future.”

The head of the world’s largest household products maker said U.S. consumer sentiment is getting better but remains uneven, and he wonders how much of a return to purchasing has been driven by federal stimulus spending compared with underlying growth.

P&G’s McDonald said he has told federal officials that companies love certainty.

On Friday, the U.S. unemployment rate dropped to a five-month low, suggesting the labor market was still improving slowly.

McDonald has already surpassed Wall Street’s expectations during the first two quarters of his tenure. Demand has started to perk up for most of P&G’s goods. The company’s shares have risen 20 percent since he took over seven months ago, slightly ahead of the Dow Jones industrial average’s 18.4 percent gain.

Also in the basket:

Tyson profit tops expectations, chicken improves

Kraft gets over 75 pct of Cadbury, to delist shares

Study authors love Super Bowl, studies show

(Reuters photo)

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Same-store sales for last month moved into positive territory from last year’s decline as many chains avoided drastic clearance sales and shoppers redeemed holiday gift cards. Many retailers reported sales that beat analysts’ forecasts, and Macy’s, TJX Cos (TJ Maxx, Marshalls among others) and American Eagle Outfitters raised earnings outlooks, while Bon-Ton Stores said its quarterly profit would be at or near the high end of its outlook.

Analysts on average had expected sales at stores open at least one year to rise 2.5 percent in January, according to Thomson Reuters data, rebounding from a 5.7 percent drop in January 2009. 

The figures could mark the fifth consecutive monthly sales increase after a year’s worth of declines during the recession, as consumers slowly return to spending and retailers lower prices to match a more circumspect shopper. 

On the earnings front, it was the usual mixed bag. Burger King posted a better-than-expected profit, Clorox raised its 2010 profit outlook, and foodmakers Kellogg and Sara Lee forecast 2010 earnings above expectations. Avon Products posted a higher profit, while Pilgrim’s Pride, which exited bankruptcy in December, reported a profit.

On the other hand, Bunge reported a loss, and Reynolds American posted weaker-than expected earnings.

Also in the basket:

Wal-Mart, Target seek big returns in small stores

Toyota’s $2 bln recall hit to keep it in the red

FTC warns Wal-Mart, Target, others on bamboo labeling

Video game makers look for 2010 turnaround

(Reuters photo)

Instead, in stores in Folsom, Citrus Heights and Ukiah, Walmart is offering shoppers resuable bags — a regular sized bag for 15 cents or an oversized bag for 50 cents.

It’s part of a plan by Walmart to cut plastic shopping bag waste in its stores by one-third by 2013.

In 52 other stores in California, Walmart is now selling both of these reusable bags up front  at the register, where cashiers are encouraging shoppers to buy them when they check out (although shoppers can still opt for the free plastic bags).

When I visited the American Canyon store outside Napa Valley, plenty of shoppers were still having purchases piled into free plastic bags.  But others chose to buy reusable ones, saying they didn’t mind paying for a reusable bag if it would keep plastic ones from piling up at home.

“It’s rare you can get something for 15 cents these days,” shopper Gloria Campbell told me.

But there are skeptics, especially at the stores where Walmart no longer provides free bags. Posters on message board ask why they have to pay for something that used to be free, especially at a discount retailer known for touting its low prices.

Walmart is hoping shoppers will bring reusable bags (even if they’re from a competitor) to its stores, so they won’t need to buy new ones each time they go shopping.

Company spokeswoman Amelia Neufeld also said that right now this is all a test that Walmart is monitoring for customer reaction.

Given Walmart’s enormous influence in the retail industry and the fact that many local governments are looking for ways to crack down on plastic shopping bags, this is sure to be one test other retailers will keep an eye on.

(Photos taken by Reuters of the reusable bags being offered for sale at Walmart)

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Analysts had expected the No. 1 U.S. drugstore chain operator to post a 2.2 percent increase in same-store sales. But the company instead posted a surprise 1.1 percent drop.

Among factors that hurt the company were a calendar shift. This January had one less weekday in it than last year. That might not seem like a big deal, but Walgreen fills more prescriptions during the week so the shift cut 1.3 percentage points from the same-store sales increase.

Pharmacy same-store sales fell 1.2 percent, a decline made worse by the fact that some of those sales have were in the form of H1N1 flu shots, a one-time item.

The same-store sales decline was also the second monthly surprise in a row.

The problem has also infected the entire store, with general merchandise sales also down.

Also in the basket:

Polo revenue misses Street view;  shares sink

Abercrombie & Fitch’s style sense wears thin with some shoppers (WSJ)

(Reuters photo)

UPS

Announced in November and December, the free applications enable users to create and track shipments, calculate rates and delivery times and find the nearest UPS location.

“People can browse the web on their phone as easy as on their home computer, so that’ll make it easier and easier to shop for holiday presents and birthday gifts,” Chief Financial Officer Kurt Kuehn told Reuters.

Online shipping is a sweet spot for both UPS and rival FedEx Corp, both considered economic bellwethers as they handle such a huge chunk of the world’s shipping. But it will be a whole lot sweeter when the U.S. economy catches up with the rest of the world and the U.S. consumer relaxes and starts to spend again. FedEx has iPhone and BlackBerry applications as well.

In the fourth quarter results it reported today, for example, UPS announced a 19 improvement in operating profit in its international segment compared with a drop in domestic operating profit of almost the same size.

“It’s easier than ever for them to shop now,” Kuehn said. “Whether they have enough money to shop, that’s another question.”

(Photo: Reuters)

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Chocolate maker Hershey posted a quarterly profit above analysts’ expectations, said it was on target to meet its 2010 earnings forecast and boosted its dividend. The company also said it would boost advertising to try to sell more candy, including Almond Joy and York peppermint patties.

Meanwhile, Archer Daniels Midland, one of the largest processors of corn and soybeans, saw its profit slip 2 percent, but the results still topped analysts’ forecasts, and Pepsi Bottling also topped Wall Street’s view as productivity improvements offset a dip in sales. Fruit and vegetable producer Dole Food reported a higher fourth-quarter profit and paid down debt.

Outside the food and beverages sector, Whirlpool’s profit more than doubled on cost cuts and improving sales and the world’s biggest appliance maker offered a stronger-than-expected 2010 forecast. Women’s clothing retailer Ann Taylor said its fourth quarter earnings would top expectations.

Nevertheless, investors have been giving overall U.S. earnings a big yawn up to now, and consumers are saving more and spending less according to the IMF. On the plus side, global employment services company Manpower reported a higher-than-expected profit and said job trends were improving around the world, suggesting the economic recovery would be sustained.

Also in the basket:

U.S. Jan retail sales seen up, clues sought for Q1

Kraft set for Cadbury deal, to meet Mandelson

Super February offers tickets galore for sports fans

Lack of ‘excellent’ coffee blends-Consumer Reports

Obama Budget Gives and Takes From Industry (WWD, subscription required)

(Reuters photo)

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For you romantics out there who gauge the strength of your love by an annual showering of flowers, chocolate and jewelry on Valentine’s Day — you might want to adjust your expectations.

This year, couples plan to spend an average of $63.34 on gifts for their significant other or spouse, down nearly 6 percent from $67.22 last year, according to the National Retail Federation’s 2010 Valentine’s Day Consumer Intentions and Actions Survey. At the same time, the average person plans to spend $5.37 on their friends, up 13 percent from $4.74 last year.

The survey also found people plan to spend more on classmates and teachers, co-workers and pets.

“While some may view Valentine’s Day as cliche, many people still look forward to giving significant others, friends, family and even pets something special,” said Tracy Mullin, NRF’s president and CEO in a statement. “Rather than not give anything at all, consumers will instead focus on small, thoughtful gifts for the people who mean the most to them this year.”

The NRF predicted total holiday spending will reach $14.1 billion.

Yet another, more optimistic survey from research firm IBISWorld predicted that total Valentine’s Day spending will be up 3.3 percent from last year, reaching $17.6 billion. The caveat here though is that since the holiday falls on a Sunday, more of the spending will move from traditional gift-giving toward dining out.

“Because Valentine’s Day lands on a Sunday, restaurants are likely to gain traffic throughout the entire weekend,” said Toon van Beek, an analyst with IBISWorld in a statement. “Furthermore, because President’s Day is on the following Monday, many consumers will be able to travel over the three-day weekend, further boosting restaurant sales.”

IBISWorld predicted that U.S. consumers will spend 8.2 percent more on dining out and 2.3 percent more on romantic getaways, and that spending on traditional gifts like jewelry and flowers will each fall nearly 5 percent.

Whatever your significant other does, just remember: It’s the thought that counts.

Also in the basket:  

Bloomingdale’s opens first non-U.S. store in Dubai

Alberto Culver profit tops expectations

Amazon gives in to Macmillan on e-book pricing

(Photo: Reuters)

His government’s decision this month to devalue the Venezuela bolivar promises to hurt the profits of many leading U.S. consumer products makers this year even as they seem to be turning a corner.

On Friday, Newell Rubbermaid said the devaluation – which basically creates a two-tiered system that sells U.S. dollars for 4.3 bolivars in one market, and a separate parallel market where the greenback is going for about 6 bolivars- would shave 4-5 cents per share off of its 2010 earnings, sending its shares down.

The news follows Colgate-Palmolive and Procter & Gamble also saying on Thursday that Hugo’s tinkering with exchange rates would hit their 2010 profits, putting a little damper on the news that both companies had done better than expected last quarter.

More bad news may be on the way as we make our way through earnings season: companies exposed to Venezuela could feel an average earnings hit of about 2 percent from translating business from that country into U.S. dollars, Bill Pecoriello of Consumer Edge Research warned us earlier this month.

(Reuters photo)