PepsiCo Cuts Earnings Forecast, Bottler Acquisition Unlikely To Be A Magic Bullet For North America

Shares in soft drink and snack food company PepsiCo closed down 3% on October 8 2010 after the firm posted on Q3 results and revealed it was trimming the upper end of its earnings forecast (see chart). In the three months to September 4 2010, the company's revenues leapt 40% to US$15.51bn on the back of the company's purchase of its US bottler operations. Net profits were up by only 12% for the quarter, as a result of the much lower margins that the acquired bottling businesses operate under. However, this was generally in line with expectations.

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