Soft drinks producer, Pepsi Bottling Group Inc. (PBG), has cut its earnings forecast for the first quarter and for 2003 as a whole, attributing the move to lower US volumes and profit.
The company, which is the world’s largest bottler of Pepsi-branded drinks, is now forecasting earnings per share for the quarter of between 12 cents and 14 cents. Analysts’ forecasts had been for EPS in the region of 19 cents. For 2003, PBG is now forecasting EPS in the range of US$1.61 to US$1.67. On average, analysts were forecasting around US$1.71.
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Pepsi Bottling said that adverse weather had reduced delivery capacity in the first quarter. The company said it now expects first-quarter constant territory US volumes to be down by between 5% and 6%, while global volumes would be down by 3% to 4%. The company has also lowered its constant territory US volume growth target for the full year to between flat and 1%.
“We remain confident in our plans for the remainder of the year with the bulk of our growth expected in the second half,” said PBG’s chairman and CEO, John Cahill.
