PepsiCo CFO: Global Economic Conditions Not As Bad As Feared

Despite mixed economic conditions around the globe during the second quarter, people were still spending on soda and chips.
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Despite mixed economic conditions around the globe during the second quarter, people were still spending on soda and chips. Beverage giant PepsiCo (PEP) - Get Report reported that second-quarter earnings rose six percent from the prior year to $1.35 a share, easily beating Wall Street estimates of $1.30 a share. Net revenue fell 3.3 percent year over year to $15.4 billion, held back by a four percentage point hit due to volatile currency conditions. Analysts had expected revenue of $15.37 billion. The company lifted its full-year earnings outlook to $4.71 a share from a previous outlook of $4.66. Revenue excluding the impact of currency fluctuations, which PepsiCo refers to as organic revenue, is still seen rising four percent for the year. 'I think what you are seeing is a consistently slow growth rate around the world,' PepsiCo Vice Chairman and CFO Hugh Johnston told TheStreet, continuing, 'As we entered the year, we were more concerned you would see more of a drop off and frankly, we just haven't seen that happen.' PepsiCo's volume rose in all geographic regions except for North American beverages and Latin America, where it fell slightly from the prior year. TheStreet's Brian Sozzi reports from New York City.