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

Coke's comments on its bottling partners comes just a day after rival PepsiCo (PEP) announced a $6 billion bid for two of its bottlers. That news at the start of the week had pushed up shares of Coca-Cola Enterprises (CCE) amid speculation that Coke may also weigh a deal with its largest bottler. That rally in the bottler's shares fizzled out Tuesday, with Coca-Cola Enterprises (CCE) shares down 4.6% to 14.54.

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 3% to 42.98. Coke said it is confident about meeting its long-term targets for the year, although second quarter profits may be below targets. 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.

On a conference call, Coca-Cola executives emphasized its cooperation with its bottlers has been growing.

"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."

Coke posted net income of $1.35 billion, or 58 cents a share, down from $1.5 billion, or 64 cents a share, 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.)