US food and drinks giant PepsiCo has announced plans to reduce costs and restructure some of its operations. The company said it will take a restructuring charge of between US$65m and US$85m, equivalent to US$0.03 per share of its 53rd week profits.

As a result of the announcement, the company stated it now expects 2005 reported earnings per share of between US$2.38 and US$2.39. The company confirmed that it was on target to deliver core earnings per share of US$2.64 to US$2.65.

The only details of the restructuring to emerge so far are plans to cut 200 to 250 jobs at the group's food subsidiary Frito-Lay. Further details affecting other subsidiaries are likely to emerge in due course.

PepsiCo's chairman and CEO Steve Reinemund said: "We continue to see very good top-line momentum, giving us confidence in our outlook for the fourth quarter. At the same time, we are tightening our belts wherever we can to be in position to deal more effectively with continued cost pressures next year. The strong momentum of our business, together with these actions and a strong innovation calendar for 2006, gives us confidence that we will achieve our goal of low double-digit earnings per share growth in 2006."