Last updated on June 13th, 2024 at 12:10 pm
New York-based PepsiCo Inc.’s fourth-quarter net income fell 5 percent because of higher costs and cut its earnings forecast on a dim view of the economy.
Shares of the maker of soft drinks, Frito-Lay snacks and Quaker cereal fell nearly 3 percent in pre-market trading.
Net income fell to $1.37 billion, or 85 cents per share. That’s down from $1.43 billion, or 90 cents per share, last year.
Adjusted earnings came in at $1.05 per share. Analyst expected $1.04, according to FactSet.
Revenue rose 37 percent to $18.16 billion, helped by acquiring its two biggest bottlers. PepsiCo sold 9 percent more of its products.
CEO Indra Nooyi sounded a cautious note for 2011. She says consumers remain pressured by high unemployment and costs for raw materials are expected to remain high. Competition, especially with rival Coca-Cola Co., remains stiff, and Pepsi’s numbers suggest Coke is taking business.
Still, the company expects buying its bottlers and its $3.8 billion acquisition of Russian food company Wimm-Bill-Dann Foods will help results.
Pepsi now expects earnings per share growth of 7 percent to 8 percent. It previously forecast growth of 10 percent to 11 percent.
Pepsi’s Frito-Lay snack division volume rose slightly. PepsiCo Americas Beverages volume rose 1 percent.
For the full year, net income rose 6 percent to $6.32 billion, or $3.91 per share, from $5.95 billion, or $3.77 per share last year.
Revenue rose 34 percent to $57.84 billion from $43.23 billion a year ago.
Rival Coca-Cola Co. said Wednesday fourth-quarter net income more than tripled on the acquisition of a bottler and stronger sales of its drinks worldwide.
Shares fell $1.62, or 2.5 percent, to $62.80 during midday trading.
