SOMERS, N.Y. – Pepsi Bottling Group Inc. (PBG), the world's largest maker and distributor of Pepsi beverages, said Thursday that second-quarter earnings rose 4.2 percent from last year, lifted by the launch of new products such as Pepsi Lime (search) and Tropicana Twister (search).
Net income rose to $148 million, or 59 cents per share, from $142 million, or 53 cents per share, a year ago. Sales increased to $2.86 billion from $2.68 billion last year.
Analysts surveyed by Thomson Financial were looking for earnings of 56 cents per share on sales of $2.79 billion.
The company said that worldwide physical case volume rose by 3 percent in the quarter on a constant territory basis, comprised of a 1 percent rise in U.S. and Canadian operations, 9 percent growth in European business and 8 percent growth in Mexico.
"We are pleased with our performance in the U.S.," said Chairman and CEO John T. Cahill. "While our overall carbonated soft drink business was soft, new products boosted our volume performance. The launch of Pepsi Lime and Tropicana Twister as well as the continued rollout of Aquafina FlavorSplash (search), Aquafina Sparkling (search) and Lipton Iced Tea lifted our volume for the quarter."
Pepsi Bottling is raising its full-year pro forma operating income growth expectations to a range of 3 percent to 5 percent. The company also said it expects pro forma earnings per share for the year to be $1.82 to $1.88, excluding the impact of a 53rd week. Including the extra week, 2005 profit is estimated to range between $1.84 to $1.91 per share.
Analysts are forecasting full-year earnings of $1.83 per share, on average.
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