Pepsi Bottling Group Inc.'s (PBG) fiscal third-quarter earnings rose 9.9%, as the bottler was aided by lower commodity costs in one of its last quarters as an independent company.

The company's revenue, however, came in below expectations. The bottler and peer PepsiAmericas Inc. (PAS) are being acquired by PepsiCo Inc. (PEP) for a combined $7.8 billion. After the deal is completed, Pepsi Bottling Chief Executive Eric J. Foss will head a new unit that will account for about three-quarters of PepsiCo's North American bottling volume.

While soda companies have struggled with weakened volume for some time, signs began to emerge in recent months that the worst impact from the recession may have passed. Foss on Tuesday said easing commodity costs and fewer pressures from currency exchange translation drove improvements in the company's performance from the first half of the year.

For the quarter ended Sept. 5, Pepsi Bottling reported a profit of $254 million, or $1.14 a share, up from $231 million, or $1.06 a share, a year earlier. Results for the latest quarter included a net 8 cents a share of tax and other gains. The company, in July, predicted earnings excluding items of $1.03 to $1.08 a share.

Revenue decreased 5% to $3.63 billion, but rose 2% excluding currency effects. Analysts polled by Thomson Reuters projected revenue of $3.73 billion on average. JPMorgan analyst John Faucher said in a research brief that the bottler's North American volume was likely hurt by softer sales of bottled water. Speaking to investors on a conference call, Pepsi Bottling executives said the overall market for non-alcoholic beverages isn't growing as yet despite some improvements. The beverage category continues to face difficulties with consumers still cutting back, they said.

Foss also said outside brands that go beyond the PepsiCo line up will continue to be important to the Pepsi system even after the acquisitions are completed. The Pepsi bottler currently distributes Dr. Pepper Snapple's (DPS) Crush brand and it still remains to be seen how Pepsi's acquisition of its bottlers will affect distribution of Crush. Foss said Tuesday that the company will continue to be interested in adding new brands to its lineup and emphasized that the partnership with Dr. Pepper has been strong.

Total case volume declined 2% as U.S. and Canada volume fell 1%, European volume fell 5% and Mexico volume rose 1%. The total volume declines were smaller than first-quarter and second-quarter drops of 5% and 4% respectively, as well the prior-year period's decline of 6%.

The bottler said it expects to incur fees of $40 million to $60 million for external advisors hired in connection with the PepsiCo acquisition.

Shares of Pepsi Bottling, which confirmed its 2009 earnings forecast, rose 1.3% to $37.81 in premarket trading. The stock is up 66% this year amid the impending takeover.

-By Anjali Cordeiro and Tess Stynes, Dow Jones Newswires; 212-416-2200; anjali.cordeiro@dowjones.com; 212-416-2481; tess.stynes@dowjones.com