PepsiAmericas saw its third quarter net income fall lightly yesterday (October 26) despite a healthy rise in volumes and revenues. The company also confirmed its full year earnings outlook.

Reported third quarter 2005 net income reached US$63.7m and diluted earnings per share (EPS) was US$0.47, the company said. The results compare to net income of US$64.3m in the third quarter of 2004, or EPS of US$0.46.

For the first nine months of this year, the company reported net income of US$157.1m and EPS of US$1.14, compared to net income of US$146.5m and EPS of US$1.03 for the same period in 2004.

Reported worldwide revenue, meanwhile, increased by 11.3%, with the newly acquired Central Investment Corporation (CIC) territories contributing approximately 7 percentage points of the growth. Worldwide volume improved 6.7% in the quarter, including the CIC territories. On a constant territory basis, PepsiAmericas delivered worldwide volume growth of 1% in the third quarter. US volume grew by 0.4% on a constant territory basis, while international delivered volume growth of 3%.

"We are very pleased with our third quarter performance as we continued to deliver consistent revenue growth," said chairman and chief executive officer Robert C. Pohlad. "Our US business was the primary driver of our operating results in the quarter, fuelled by strong execution in our noncarbonated portfolio, balanced pricing and the meaningful contribution from CIC. Our noncarbonated drink category grew to almost 16% of our overall volume mix in the US. CIC has performed even better than we expected this year, as we accelerate the integration and rationalisation of procurement, production, and back office activities."

In the quarter, net sales grew 11.3% to US$982.9m driven by worldwide volume growth and favourable pricing in the US. Cost of goods sold per unit was up 3.8%.

"Our third quarter performance keeps us on track to deliver the operating targets we established at the beginning of year," said Pohlad. "We are well positioned to continue the trend of double digit profit improvements through our consistent ability to drive revenue growth and control costs."

PepsiAmericas reaffirmed its full year adjusted EPS outlook of US$1.35 to US$1.38. The adjusted EPS outlook includes an estimated US$0.02 to US$0.03 per share for both the direct Hurricane Katrina impact on the Louisiana territories, net of insurance, as well as the resulting higher raw material costs.