Shares in US food and drinks group, PepsiCo, hit a two-year low on Friday after it announced its second quarter results and issued revised long-term profit forecasts.

The group's growth target for annual earnings per share is 13% to 14% and PepsiCo said it expects to hold that rate through 2003. However, after that the company expects growth in earnings per share to be in the "low double digits." Revenue growth, once projected at 7%, is expected to be slightly above annual volume growth of 4% to 5%.

"The world has changed," said PepsiCo CEO, Steven Reinemund. "The environment is less certain." Reinemund said that while the company internally is sticking to the old targets, he felt the goals should be lowered publicly given that challenges could arise. Analysts generally supported the move, saying it would make PepsiCo's results more predictable.

For the quarter to the end of June 15, PepsiCo reported net income of $940m, or 52 cents a share, compared with $824m, or 45 cents a share, a year earlier. Revenue was up by 2.3% to $6.18 billion from $6.04 billion.