PLANO, TEXAS — For the first full quarter as a stand-alone company, income for Dr Pepper Snapple Group was down 31%, partly the result of the loss of Glaceau product distribution.
For the third quarter ended Sept. 30, the company had net income of $106 million, equal to 41c per share on the common stock, down from $154 million, or 61c per share, during the same quarter of the previous year.
Sales for the quarter were $1,505 million, down 2% from $1,535 million during the same quarter of the previous year.
"Without a doubt, this is one of the toughest environments the beverage industry has faced in many years," said Larry Young, president and chief executive officer. "With disposable incomes falling, consumers are thinking harder about what they buy. Despite these headwinds, we demonstrated during the quarter that our portfolio of flavored beverages has room to grow and that our business continues to generate strong cash flow. While C.S.D. volume was up 0.5%, the demand for our premium-priced products slowed significantly resulting in performance that was below our expectations."
For the nine months ended Sept. 30, the company had income of $309 million, or $1.21 per share, down 14% from $359 million, or $1.42 per share, during the same period of the previous year. Sales for the nine months were $4,369 million, up slightly from $4,347 million during the same period of the previous year.
For the full-year 2008, the company expects net sales growth of about 1% and earnings per share of approximately $1.54 to $1.57.
"In these uncertain times, we remain committed to our long-term goals — leverage our strong portfolio of flavor brands, strengthen our route-to-market, rally around our customers and consumers and deliver results that outperform the industry," Mr. Young said. "We continue to invest with an eye to the future, and our recent organizational changes will ensure that we are better able to leverage our third-party and company-owned distribution models to drive process simplification, speed of decision making and total system profitability."