The soft drinks bottler, PepsiAmericas Inc., the second largest bottler of Pepsi-Cola branded drinks, has announced that it is to cut 530 jobs in a bid to meet its earnings targets for the year.
The Minneapolis-based company also announced that it is forecasting first-quarter results before one-off items of between 5 cents and 6 cents per share which is well below analysts forecasts of around 12 cents per share.
However, the company said it is still expecting earnings per share to rise by between 9% and 11% for the full 2003 year, in line with an earlier forecast, though it said the rise will probably be at the low end of this range.
The company said that around half of the job cuts would come from the elimination of currently unfilled positions and that it would take a one-off charge in relation to severance payments.
PepsiAmericas said first-quarter domestic volumes were expected to fall by between 7% and 8%, due partly to the timing of the Easter Holiday. The timing of the Easter break and adverse weather conditions in Central Europe will also impact on international volumes which are expected to fall by between 14% and 16% in the first quarter.