US: Pepsi Bottling Group FY profit slides on charges
Charges related to restructuring intiatives have led The Pepsi Bottling Group to report a fall in full-year net income.
Net earnings in 2008 slid to US$162m, down from US$532m the year before, PBG said today (10 February).
The company said income was damaged by restructuring and impairment charges totalling US$338m, the majority of which came in the fourth quarter and included a charge related to the firm's under-performing Electropura water business in Mexico.
Underlying net income, excluding these charges, still dipped to US$500m for the year, down on 2007.
Net revenue for the year rose by 2% to $13.8bn, the group reported.
PBG's chairman and CEO, Eric Foss, praised the soft drinks bottler's "solid" results in a "challenging environment".
Foss said: "While we expect 2009 to be another challenging year, there are a number of reasons to be optimistic about PBG's ability to continue to perform well in the marketplace. We have a healthy balance sheet and ample liquidity."
He also highlighted the firm's 'Structured to Succeed' cost savings scheme. PBG announced in the fourth quarter that it would cut 3,300 jobs globally, with 2,200 set to be axed in Mexico, as part of a plan to close three plants and 30 distribution centres.
Foss also said that he envisaged "many opportunities for future growth in the liquid refreshment beverage category", although did not give specific details.
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