Income for PepsiCo down 9% in year

by Staff
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PURCHASE, N.Y. — Income for PepsiCo, Inc. for the full-year ended Dec. 27 was down 9% from the previous year, reflecting a significant drop in fourth-quarter income that was adversely affected by restructuring and impairment charges.

Income for the year was $5,142 million, equal to $3.21 per share on the common stock, which compared with $5,658 million, equal to $3.41 per share, during the previous year.

Revenue for the year was $43,251 million, down 10% from $39,474 million during the pervious year.

"PepsiCo’s operating agility and disciplined execution delivered solid results in an extremely difficult year," said Indra Nooyi, president and chief executive officer. "We expect 2009 will present a challenging environment. More importantly, we are well positioned to manage our business to deliver short-term results while also driving long-term sustainable growth."

For the Frito-Lay North America division, operating profit for the year was $2,959 million, up 4% from $2,845 million during the previous year. Revenue for the division was $12,507 million, up 8% from $11,586 million during the previous year.

Operating profit for Quaker Foods North America was $582 million, up 2% from $568 million during the previous year. Revenue for the segment was $1,902 million, up 2% from $1,860 million during the previous year.

For the fourth quarter the company as a whole had a net income of $719 million, equal to 46c per share, down 43% from $1,262 million, equal to 77c per share, during the same quarter of the previous year. Excluding restructuring and impairment charges, net income was $1,300 million, or 88c per share, which was in line with analysts’ expectations.

Revenue for the quarter was $12,729 million, up 3% from $12,346 million during the previous year.

PepsiCo said it is offering a wider range in 2009 guidance due to the economic conditions and said it expects both net revenue and core e.p.s. of mid- to high-single-digit growth on a constant currency basis. In addition, the company said it anticipates foreign exchange will adversely impact constant-currency core by about 8 percentage points.

"The first half of 2009 — and the first quarter in particular — will present the most difficult year-over-year comparisons, in part reflecting commodity costs and foreign exchange rates," PepsiCo said.

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