PepsiCo 2Q profit rises 9 percent

[July 23, 2008]  NEW YORK (AP) -- Snacks and drinks company PepsiCo says its profit rose 9 percent in the second quarter on strong international growth that was further boosted by the weak dollar.

The company also said it would buy back an additional $1 billion in shares this year, increasing its total share repurchase plan to $5.3 billion for 2008. PepsiCo had spent $2.9 billion on buybacks by the end of the quarter.

PepsiCo Inc. says its profit for the three-month period ending June 14 was $1.7 billion, or $1.05 a share, compared with $1.56 billion, or 94 cents a share, during the same period last year.

Revenue of $10.95 billion for the quarter is up 14 percent from the $9.61 billion reported by the Purchase, N.Y.-based company in the second quarter of 2007.

Excluding one-time items, the company earned $1.03 per share. Thomson Financial says analysts expected earnings of $1.02 per share on revenue of $10.55 billion.

PepsiCo also reaffirmed its full-year profit estimate to be at least $3.72 per share, excluding accounting-related items.

PepsiCo International, which includes snacks and beverages outside of North and Latin America, reported revenue rose 25 percent. Snacks volume was 10 percent higher and drinks volume rise 13 percent.

The Americas snacks business reported a 16 percent rise in revenue as volume rose 2 percent, helped by price increases and double-digit volume gains in Cheetos, Ruffles, Quaker Chewy Granola and SunChips.

Weak sales of carbonated soft drinks hurt the company's Americas beverages unit, which posted 1 percent revenue growth as volume fell by 1 percent.

[Associated Press; By VINNEE TONG]

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