PepsiCo profit beats expectations, affirms 2012 outlook
By Martinne Geller
(Reuters) - PepsiCo Inc reported higher-than-expected quarterly earnings on Wednesday, despite weaker revenue caused in part by the stronger U.S. dollar and the exit of certain businesses.
The maker of Diet Pepsi, Frito-Lay snacks and Tropicana orange juice said third-quarter net income was $1.90 billion, or $1.21 per share, down from $2.00 billion, or $1.25 per share, a year earlier.
Excluding restructuring and other charges and a gain on commodity hedges, earnings were $1.20 per share. On that basis, analysts on average were expecting $1.16 per share, according to Thomson Reuters I/B/E/S.
Revenue fell 5 percent to $16.65 billion, below analysts' average estimate of $16.90 billion.
Excluding the impacts of currency fluctuations and the refranchising of its bottling businesses in China and Mexico, revenue grew 5 percent, reflecting 1 percentage point of volume growth and 4 percentage points from price increases.
The results come a day after rival Coca-Cola Co also reported weaker-than-expected revenue, hurt by declines in Europe and the Pacific region.
In the third quarter, overall sales volume rose 6 percent in the snack business, after acquisitions lifted sales in Latin America. In North America, volume rose 1 percent at Frito-Lay and 2 percent at Quaker Foods.
PepsiCo's Americas Beverage business saw volume fall 3 percent. Continued...