Pepsi Bottling 2Q profit beats Street expectations

For the quarter ended June 14, net income grew to $174 million, or 78 cents per share, from $162 million, or 70 cents per share, a year ago.

Revenue climbed 5 percent to $3.52 billion from $3.36 billion a year earlier.

On average, analysts surveyed by Thomson Financial expected profit of 75 cents per share on revenue of $3.55 billion.

The company said its net revenue per case grew 8 percent, led by robust growth in Europe and Mexico and rate increases in the U.S. and Canada. Total worldwide physical case volume declined 3 percent, due to the shift of the Easter holiday into the first quarter in the U.S. and Canada and overall weakness in the U.S. and Canadian liquid refreshment beverage market.

European volume grew 1 percent, as growth in Russia and Turkey was partially offset by volume declines in Spain. In Mexico, volume declined 3 percent.

For fiscal 2008, Pepsi Bottling reaffirmed its outlook for earnings per share of $2.30 to $2.38. The company expects to grow revenue by 5 percent to 6 percent over 2007 sales of $13.59 billion, implying revenue of $14.27 billion to $14.41 billion.

Wall Street has projected full-year profit of $2.35 per share, on average, on revenue of $14.43 billion.

Pepsi Bottling makes and distributes Pepsi-Cola beverages including Mountain Dew, Sierra Mist, Aquafina, G2 from Gatorade, Tropicana juice drinks, Lipton, SoBe, Starbucks Frappuccino and Dole.