Pepsi Reaffirms 2010 Profit Outlook
(PepsiCo article updated with additional background information and PepsiCo stock price movements)
PURCHASE, N.Y. (
) --
PepsiCo
(PEP) - Get Free Report
reported fourth-quarter earnings in line with expectations and reaffirmed its profit outlook for the year.
PepsiCo says it's still targeting an 11% to 13% growth rate for its earnings per share in 2010.
The soft-drink company on Thursday reported fourth-quarter net income of $1.4 billion, or 90 cents a share, compared with $719 million, or 46 cents a share the previous year. Analysts surveyed by Thomson Reuters expected earnings of 91 cents a share.
PepsiCo reported revenue of $13.3 billion, up from last year's $12.7 billion.
PepsiCo attributed the top- and bottom-line increases to growth in emerging markets such as South America and cost cuts across its operations.
The soft-drink and snack maker expects to resume a share-repurchase program after it completes its deal to acquire
Pepsi Bottling Group
.
PepsiCo anticipates that in 2010 share repurchases and a voluntary $600 million pension-plan contribution would add up to about $5 billion in costs this year.
PepsiCo on Dec. 8 reached an agreement with
Dr Pepper Snapple
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to manufacture and distribute certain Dr Pepper Snapple products after the completion of PepsiCo's acquisition of its two anchor bottlers.
Rival
Coca-Cola
(KO) - Get Free Report
has also reported in-line fourth quarter earnings.
Coca-Colahas a strong presence in the emerging markets, and watched its international unit case volumes soar during the period. In emerging markets China and India, Coca-Cola's unit case volume increased 29% and 20%, respectively.
PepsiCo stock settled up 1.3% at $61.20 Thursday, while Coca-Cola finished the session up 0.8% at $54.20. Dr Pepper Snapple ended the day higher as well, up 1.2% at $27.20.
-- Reported by Andrea Tse in New York
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