Coca-Cola Co. (KO) reported a 10% drop in first-quarter net income amid volatile global currencies and write-downs, and emphasized it continues to like the local approach of its bottling system.

Coke's comments on its bottling partners come just a day after rival PepsiCo Inc. (PEP) announced a $6 billion bid for two of its bottlers. That news pushed up shares of Coca-Cola Enterprises Inc. (CCE) at the start of the week due to speculation that Coke could also consider a deal with its largest bottler. The rally in the bottler's shares fizzled out Tuesday, with Coca-Cola Enterprises falling 3.4% to $14.75.

Coke's earnings were helped by strength in emerging markets, even as North America continued to feel the impact of weaker consumer spending.

"They hit [earnings] expectations. That was positive," said Chris Shanahan, an analyst at Frost & Sullivan.

Coke's shares were recently down 2.4% to $43.25. The beverage maker said it is confident about meeting its long-term targets for the year, although second-quarter profits may be below targets. Coke's long-term targets call for 6% to 8% profit growth on a comparable-currency basis.

On a conference call, Coca-Cola executives emphasized that cooperation with its bottlers has been growing. They also pointed out that a new supply-chain company that Coke has set up is already helping to reduce costs through its bottling system. Coke separated Coca-Cola Enterprises in the 1980s in a move that rid Coke of debt on its balance sheet from buying up bottlers. Coke now sells soft-drink concentrate to its bottlers, who then distribute the finished drinks in specific regions. Coke executives highlighted the benefits of that system on Tuesday.

"The franchise model in its broadest sense is still the best way to win in the marketplace," said Chief Executive Muhtar Kent on a conference call, referring to the bottling system. "It gives us the focus we need, the global breadth and scale, and the local leadership."

There have been some questions raised about how Coke might handle a more nimble beverage rival if Pepsi's bottler deals are effective. Some analysts have said Coke's response could evolve over time.

"My obligation is to make sure I win at the point of purchase," Kent said, speaking to reporters. The "local spirit and passion" of the bottling system has worked for Coke for decades and continues to show good results, he said.

On a conference call, the company said it will weigh a variety of uses for its cash on hand, including the possibility of share repurchases. But Coke emphasized it will also look to maintain financial flexibility in the current environment.

Coke posted net income of $1.35 billion, or 58 cents a share, down from $1.5 billion, or 64 cents, a year earlier. Excluding charges, earnings fell to 65 cents from 67 cents.

Revenue fell 3% to $7.17 billion, hurt by the stronger dollar.

Total volumes edged up 2%, including 3% internationally, on recent acquisitions and growth in emerging markets. North America volumes, a key measure for the industry, slipped 2%. Soda volume globally was flat, while other beverages rose 9%.

Analysts predicted earnings of 65 cents a share on revenue of $7.36 billion, according to Thomson Reuters.

-By Anjali Cordeiro, Dow Jones Newswires; 201-938-2408; anjali.cordeiro@dowjones.com

(Katherine Wegert contributed to this article.)