It has been a disappointing autumn for
Pepsi Bottling Group
shareholders since the company lowered 2003 earnings guidance at the beginning of September. On Monday the company posted quarterly income of $183 million on revenue of $2.8 billion, sparing investors any further surprises.
In early September, the company said that 2003 earnings would miss earlier guidance by between 5 cents and 10 cents per share because of slow growth and competitive pressures in Mexico. Since the announcement, the stock has fallen 13% to $20.99. For the year, the stock is off about 20% from a January peak of just over $26 per share.
For the quarter, the company said that soft drink volume was flat worldwide with strong volume in Spain making up for weaker performance elsewhere. For the year, the company reiterated the new 2003 guidance and expects to earn $1.55 to $1.57 before accounting adjustments. It also expects volume for the full year to be about flat, and for operating income to grow about 7% while producing about $1 billion in cash. Management plans to use the cash to fund $675 million in planned capital expenditures.