Pepsi Bottling Group 1Q profit falls 3 percent

For the quarter ended March 22, net income slipped to $28 million, or 12 cents per share, from $29 million, or 12 cents per share. The per-share figure in the 2008 quarter included fewer shares outstanding.

Excluding restructuring and asset disposal charges, the company earned 13 cents per share.

Analysts polled by Thomson Financial expected earnings of 12 cents per share.

The company said its operating income dipped 3 percent due to the translation of foreign currency into U.S. dollars, partly because the translation added to the company's cost of goods sold and selling, delivery and administrative expenses.

Cost of goods per case grew 8 percent in the quarter. Besides the foreign currency translation, cost of goods jumped due to higher costs for raw materials like high fructose corn syrup and aluminum.

Revenue grew nearly 8 percent to $2.65 billion from $2.47 billion in the first quarter of 2007. Analysts predicted revenue of $2.62 billion.

Revenue rose in every region, growing 5 percent in the U.S. and Canada.

Pepsi Bottling added that every country reported positive volume growth. Volume refers to the number of cases sold either directly or indirectly to consumers.