Coca-Cola volume improves, led by emerging markets

Lower costs also helped lift profit at the world's largest soft-drink maker, which gained market share in both the carbonated and noncarbonated segments.

Coca-Cola shares rose 1.4 percent to $53.40 in premarket trading.

Results continued a trend for the maker of Diet Coke, Sprite and Dasani water, which has relied on strength overseas to offset a North American market that is beset by high unemployment and low consumer confidence.

This continues to be a story about emerging market growth, Morningstar analyst Phil Gorham said, noting some really strong numbers in China and India, particularly when you (consider) that they are actually cycling a pretty strong quarter in '08.

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.

Analysts on average were expecting 66 cents per share, according to Thomson Reuters I/B/E/S.

Net operating revenue rose 5 percent to $7.51 billion. Analysts on average forecast $7.22 billion.

Overall sales by volume 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.

Coke's growth in developing markets such as India and China has helped it weather a slowdown in the United States.

Fourth-quarter volume rose 7 percent in Latin America, 11 percent in the Pacific region, 1 percent in Europe and 5 percent in the company's Eurasia and Africa divisions.

Volume fell 1 percent in the closely watched North American market, after losing 4 percent in the third quarter and 1 percent in the second quarter.

Coke's rivalry with PepsiCo Inc 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 and PepsiAmericas Inc .

Coke Chief Executive Muhtar Kent has repeatedly expressed his commitment to his company's decentralized, franchise bottling model.

Coke's sparkling beverage unit case volume increased 3 percent in the quarter, with international sparkling beverage unit case volume increasing 5 percent, cycling 4 percent growth in the prior year quarter.

Total still beverage unit case volume increased 9 percent, led 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.

(Reporting by Brad Dorfman with additional reporting by Martinne Geller and Jessica Wohl; Editing by Derek Caney, Maureen Bavdek, Dave Zimmerman)