Pepsi Bottling Group Inc (PBG.N) reported a slightly higher-than-expected quarterly income on Tuesday, as price grows and easing commodity costs helped offset falling sales volume.
The largest bottler of PepsiCo Inc (PEP.N) drinks said net income was $254 million, or $1.14 per share, in the third quarter, up from $231 million, or $1.06 per share, a year earlier.
Excluding items, earnings were $1.06 per share. Analysts on average were expecting $1.05 per share, excluding items.
Net revenue fell nearly 5 % to $3.63 billion, failing to meet analysts' average expectation for $3.73 billion.
Total sales by volume fell 2 %, as a 1 % gain in Mexico was offset by declines of 5 % in Europe and 1 % in the United States and Canada.
Excluding the impact of currency fluctuations, revenue per case rose 4 %, helped by increases of 3 % in the United States and Canada, 7 % in Europe and 6 % in Mexico.
The company, which is being acquired by PepsiCo, its largest shareholder and supplier, still expects 2009 earnings to be near the high end of its prior forecast of $2.30 to $2.40 per share. It raised its operating free cash flow forecast to $550 million, $100 million higher than its earlier expectation.
PepsiCo said in August that it would buy Pepsi Bottling and PepsiAmericas Inc (PAS.N), its second-biggest bottler, for $7.8 billion, as it seeks to cut costs in North America.
The world's second-biggest soft drink maker behind Coca-Cola Co (KO.N) said on Monday that Pepsi Bottling Chief Executive Eric Foss would run its new integrated North American bottling business, according to Reuters.
Representatives of the Israeli Defence Ministry responded to recent reports about the possible delivery of S-300 SAM systems from Russia to Syria. Israeli Defence Minister Avigdor Lieberman said that Israel would destroy those systems
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