Dr Pepper Snapple income down 5% in quarter
October 27, 2010
PLANO, TEXAS — Higher packaging, ingredient and transportation costs were factors contributing to a 5% decrease in net income for Dr Pepper Snapple Group during the third quarter.
For the quarter ended Sept. 30 the company had net income of $144 million, equal to 61c per share on the common stock, which compared with income of $151 million, or 59c per share, during the same quarter of the previous year. Sales for the quarter were $1,457 million, up 2% from $1,434 million during the same quarter of the previous year.
“Our portfolio of C.S.D.s and value juices continued to post solid volume and share gains, further demonstrating their value to consumers,” said Larry Young, president and chief executive officer. “During the quarter, we saw continued strong growth in Snapple, we launched a refreshed crisp, clean 7UP, kicked off a number of important Rapid Continuous Improvement initiatives that we believe will further strengthen our integrated operating platform and, on Oct. 4, 2010, completed the licensing of certain brands to The Coca-Cola Co. We also successfully concluded labor negotiations at our Williamson, N.Y., manufacturing facility, making its long-term cost structure more competitive. With improving LRB trends in the U.S., we remain focused on delivering on our commitments for 2010, while building solid plans for 2011 and beyond.”
For the nine months ended Sept. 30, the company posted income of $416 million, or $1.70 per share, down 6% from $441 million, or $1.73 per share, during the same period of the previous year. Sales for the nine months were $4,224 million, up 1% from $4,175 million.
The company now expects its full-year sales to increase 1% to 2% with reported diluted earnings per share of $2.30 to $2.38.