US: PepsiCo announces restructuring
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."
Sectors: Soft drinks
- Have spirits companies forgotten the mainstream?
- Does alcohol accelerate the onset of dementia?
- Pernod's mood darkens over India - Analysis
- Why Scotch must drop the 'malts good, blends bad'
- Ashwagandha - The next functional drinks trend?
- Moet Hennessy unaffected by LVMH Dior buy
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Distell acquires majority stake in Cruz Vodka
- Portman Group heads to Tesco for new chief exec
- William Grant names Europe & NA Travel Retail head
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Global vodka insights - market forecasts, product innovation and consumer trends