EPS of $0.51 Includes Tax Charge Related to International Cash Repatriation
PURCHASE, N.Y., Sept. 29 -- PepsiCo reported 13% net sales growth and a 14% increase in third quarter Division operating profit. Worldwide snacks volume increased 4.5% and worldwide beverage volume grew 10%. The results were largely driven by strong performances in the Company's North American beverage business and its international operations.
Earnings per share were $0.51 in the quarter, including a $0.27 charge related to the Company's intent to repatriate $7.5 billion of international earnings under the provisions of the American Jobs Creation Act. The third quarter of last year included tax benefits of $221 million, or $0.13 per share. Excluding these tax items, earnings were $0.78 per share, an increase of 18% compared to the third quarter of last year.
Chairman and CEO Steve Reinemund said, "We are very pleased with our performance for the quarter, especially on the top line. Each of our operating divisions contributed to the very positive overall results. Our international operations, in particular, continue to perform very well, and our North American beverage business capitalized on strong weather-driven demand to deliver an outstanding quarter."
Reinemund continued, "Looking ahead to the fourth quarter, we are encouraged by the momentum in our businesses, but we expect the recent hurricanes to negatively affect some key input costs and, potentially, consumer spending. We are not unique in having to address these challenges, but clearly must acknowledge them."
"All that said, given the strength of our third quarter, and recognizing the near-term cost- and economic challenges, I believe we will exceed our previously stated 2005 operating and financial objectives."