Saguaro
10-11-2007, 08:45 AM
NEW YORK - PepsiCo Inc., the huge beverage and snack foods maker, said Thursday its third-quarter profit rose 17 percent on double-digit growth in international sales.
The earnings results from the world's second biggest soft drink company, which also makes Frito-Lay snacks, beat Wall Street's estimate. Its shares edged up in premarket trading.
PepsiCo earned $1.74 billion, or $1.06 per share, for the quarter ended Sept. 8, up from $1.49 billion, or 89 cents per share, a year earlier.
Revenue rose 11 percent to $10.17 billion from $9.13 billion last year.
Analysts polled by Thomson Financial had predicted earnings of 96 cents per share on revenue of $9.91 billion.
The earnings estimates typically exclude one-time items. The company said that excluding a $115 million tax benefit, it generated core earnings of 99 cents per share.
In addition to Pepsi beverages and Frito-Lay snacks, the company owns Gatorade and Tropicana drinks and the Quaker foods business. PepsiCo is the second biggest soft drink company after The Coca-Cola Co. in Atlanta.
The company reiterated its full-year earnings per share forecast of at least $3.35.
Overall operating profit grew 10 percent.
The fast-growing PepsiCo International unit reported operating profit grew 19 percent on revenue growth of 22 percent. Revenue was boosted 6 percentage points by favorable foreign currency comparisons and another 7 points by the effect of acquisitions and divestitures. The steepest growth this quarter was in Asia, as snacks grew 20 percent and beverages grew 12 percent.
The company's three other divisions reported single-digit growth in operating profit and revenue.
Frito-Lay North America had 7 percent operating profit growth on a 6 percent rise in revenue. PepsiCo Beverages North America operating profit grew 7 percent on a 3 percent rise in revenue. And Quaker Foods North America operating profit and revenue each grew 2 percent.
The company reported weakness in two areas, as sales volume declined 2 percent for Quaker and 1 percent for PepsiCo Beverages North America.
Sales of carbonated soft drinks in North America declined 3 percent while non-carbonated beverages grew 2 percent, led by Lipton ready-to-drink teas. Sales volumes of Gatorade, juice and juice drinks fell by a mid-single digit rate, while Aquafina water volume grew by a mid-single digit rate.
At Frito-Lay, Doritos, Sunchips, multi-packs and dips grew by double-digits while Lay's reported declines.
"All of the Company's operating divisions successfully navigated through an environment of higher input costs," Chief Executive Indra Nooyi said in a statement. "Our third-quarter performance was very strong."
Its shares rose 40 cents to $74 in premarket trading after rising nearly 2 percent earlier.
http://news.yahoo.com/s/ap/20071011/ap_on_bi_ge/earns_pepsico;_ylt=ApqNO_KI5GUYb2Y5l.tiXpayBhIF
The earnings results from the world's second biggest soft drink company, which also makes Frito-Lay snacks, beat Wall Street's estimate. Its shares edged up in premarket trading.
PepsiCo earned $1.74 billion, or $1.06 per share, for the quarter ended Sept. 8, up from $1.49 billion, or 89 cents per share, a year earlier.
Revenue rose 11 percent to $10.17 billion from $9.13 billion last year.
Analysts polled by Thomson Financial had predicted earnings of 96 cents per share on revenue of $9.91 billion.
The earnings estimates typically exclude one-time items. The company said that excluding a $115 million tax benefit, it generated core earnings of 99 cents per share.
In addition to Pepsi beverages and Frito-Lay snacks, the company owns Gatorade and Tropicana drinks and the Quaker foods business. PepsiCo is the second biggest soft drink company after The Coca-Cola Co. in Atlanta.
The company reiterated its full-year earnings per share forecast of at least $3.35.
Overall operating profit grew 10 percent.
The fast-growing PepsiCo International unit reported operating profit grew 19 percent on revenue growth of 22 percent. Revenue was boosted 6 percentage points by favorable foreign currency comparisons and another 7 points by the effect of acquisitions and divestitures. The steepest growth this quarter was in Asia, as snacks grew 20 percent and beverages grew 12 percent.
The company's three other divisions reported single-digit growth in operating profit and revenue.
Frito-Lay North America had 7 percent operating profit growth on a 6 percent rise in revenue. PepsiCo Beverages North America operating profit grew 7 percent on a 3 percent rise in revenue. And Quaker Foods North America operating profit and revenue each grew 2 percent.
The company reported weakness in two areas, as sales volume declined 2 percent for Quaker and 1 percent for PepsiCo Beverages North America.
Sales of carbonated soft drinks in North America declined 3 percent while non-carbonated beverages grew 2 percent, led by Lipton ready-to-drink teas. Sales volumes of Gatorade, juice and juice drinks fell by a mid-single digit rate, while Aquafina water volume grew by a mid-single digit rate.
At Frito-Lay, Doritos, Sunchips, multi-packs and dips grew by double-digits while Lay's reported declines.
"All of the Company's operating divisions successfully navigated through an environment of higher input costs," Chief Executive Indra Nooyi said in a statement. "Our third-quarter performance was very strong."
Its shares rose 40 cents to $74 in premarket trading after rising nearly 2 percent earlier.
http://news.yahoo.com/s/ap/20071011/ap_on_bi_ge/earns_pepsico;_ylt=ApqNO_KI5GUYb2Y5l.tiXpayBhIF