DOW JONES NEWSWIRES
Pepsi Bottling Group Inc.'s (PBG) second-quarter earnings rose
21% on a tax benefit as the company's results topped expectations
amid improved soda results in the U.S. and Canada.
Soda bottlers have struggled with weakened volumes as consumers,
hammered by the recession, reduce spending on sodas and
vitamin-infused drinks.
The company reported profit of $211 million, or 96 cents a
share, up from $174 million, or 78 cents a share, a year earlier.
The latest results included an 18-cent tax benefit. Excluding that,
Pepsi Bottling last month raised its earnings target to 70 cents to
74 cents, above analyst's views at the time.
Revenue decreased 7.1% to $3.27 billion, but was flat on a
constant-currency basis. Analysts polled by Thomson Reuters most
recently were looking for $3.45 billion.
Gross margin fell to 44.1% from 45.6%.
Total case volume fell 4%, with a shift in the Easter holiday to
the second quarter adding one percentage point to results. U.S. and
Canada volume declined 1%, a smaller decline than prior quarters.
European volumes slumped 15% as that region's economy continues to
weaken.
Net revenue per case fell 3%, but was up 5% on a
constant-currency basis. In the U.S. and Canada, net revenue per
case rose 2% on price hikes.
Chairman and Chief Executive Eric Foss said the results also
were aided by easing commodities costs and favorable
foreign-exchange trends.
Pepsi Bottling and PepsiAmericas Inc. (PAS) earlier this year
both spurned PepsiCo Inc.'s (PEP) effort to buy portions of the
companies it doesn't already own. Meanwhile, Pepsi Bottling has
continued to seek growth through acquisitions, agreeing to buy
regional bottlers in Texas and Massachusetts. Pepsi Bottling and
PepsiCo also have unveiled plans to spend $1 billion to expand in
Russia over the next three years.
Shares of Pepsi Bottling, which reiterated its 2009 forecast,
closed at $33.65 on Tuesday and didn't trade premarket. The stock
is up by nearly 20% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com