PepsiAmericas Q2 profit rises on prices
July 27, 2005
by FoodBusinessNews.net Staff
MINNEAPOLIS — PepsiAmericas, Inc., the second biggest bottler of Pepsi drinks, on Wednesday reported second-quarter earnings rose 17.7%, aided by a gain from a favorable legal settlement, higher prices and volume growth worldwide.
The company posted earnings of $72.6 million, equal to 54c on the common stock, up from $61.7 million, or 44c, in the prior year period.
"The growth and consistency of our performance continued, driven by an improving balance between pricing and volume," said Robert C. Pohlad, chairman and chief executive officer. "The second quarter of 2005 marked our fourth consecutive quarter of worldwide volume gains on a constant territory basis and reflects the complimentary strength of our geographies and product portfolio. Volume improvements in Central Europe and the Caribbean combined with strong worldwide pricing drove our top-line growth."
The latest quarter included an $8.3 million, or 6c per share, gain from the settlement of litigation for a case involving high fructose corn syrup.
Worldwide average net selling prices rose 3.9% in the quarter, while worldwide volume rose 1.9%.
PepsiAmericas also raised its full-year earnings forecast by 5c per share to a range of $1.38 to $1.41, to reflect gains from the total expected fructose settlement. Analysts’ average estimate for 2005 is $1.36.