Income for PepsiAmericas down 32% in quarter

by Staff
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MINNEAPOLIS — A stronger dollar and a charge related to a joint venture contributed to lower earnings at PepsiAmericas during the second quarter.

For the quarter the company had net income of $61.4 million, equal to 51c per share on the common stock, which compared with $90.8 million, or 73c per share, during the same quarter of the previous year.

Sales for the quarter were $1,261.9 million, down 6% from $1,340.8 million during the same quarter of the previous year.

"We are pleased with our second-quarter results, which build on a solid first-quarter performance," said Robert C. Pohlad, chairman and chief executive officer. "The strength of our brands combined with our continued strategic investments and consistent improvement in productivity have provided us with the flexibility to manage through today’s economic reality."

For the six months the company had income of $83.1 million, or 68c per share, down 28% from $115.5 million, or 92c per share, during the same period of the previous year. Sales for the six months were $2,319.4 million, down 5% from $2,439.5 million during the same period of the previous year.

The company also is raising its full-year earnings outlook to $1.87 to $1.94 per share, up from a previous guidance of $1.83 to $1.90.

"Across all geographies, we continue to execute on our global pricing plans to protect margins, increase distribution gains, expand our brand portfolio and drive costs out of our systems," Mr. Pohlad said. "Specifically in the U.S. we grew revenue by 5% and operating profits by 24% in the quarter. In Central and Eastern Europe the combination of pricing and productivity helped to manage through significant foreign currency headwinds, although still having an impact on our worldwide operating results."

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