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PepsiAmericas Goes Flat

It misses and guides lower.
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PepsiAmericas

(PAS)

missed third-quarter targets and guided lower for the year, citing rising raw materials costs.

The Minneapolis-based bottler made $53 million, or 41 cents a share, down from the year-ago $64 million, or 47 cents a share. Revenue rose to $1.06 billion from $983 million a year earlier.

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Analysts surveyed by Thomson Financial were looking for a 47-cent profit on sales of $1.03 billion.

"We are pleased with our top-line performance in the third quarter, reflecting pricing gains and volume increases in all of our geographies," said CEO Robert C. Pohlad. "In the U.S., our top-line growth continued, with a better balance between volume and pricing. However, significant volume increases in our take home Aquafina business and a soft single-serve business continue to unfavorably impact our net pricing. This, along with higher raw material costs, has resulted in lower domestic profits than a year ago.

"In our international businesses," continued Pohlad, "revenue and operating profits grew double digits in our existing markets. We have a broadened product portfolio, a more efficient infrastructure, and a strong commitment to brand investment, driving sustainable growth in our international markets."

The company said it expects to make $1.30 to $1.33 for the year, below the $1.37 Thomson target.