PepsiCo Profit Rise Exceeds Expectations

PepsiCo Inc. reported better-than-expected third-quarter profit and reiterated expectations of strong earnings growth in coming years as its soft-drink, cereal and snack-food businesses remain resilient amid the economic slowdown.

The company said earnings grew 14% to $866 million, or 48 cents a share, in the quarter ended Sept. 8, with sales up 8% to $6.91 billion. The results exclude $248 million in charges related to the acquisition of Quaker Oats Co.

Analysts on average were expecting 46 cents, according to Thomson Financial/First Call.

PepsiCo, whose brands include its namesake soda, Frito-Lay snacks, SoBe fruit drinks and No. 1 sports drink Gatorade, said it still is committed to earnings growth of 13% to 14% in 2002 and beyond.

The company did not specifically address the effect of the Sept. 11 attacks on the economy or its outlook, but Chief Executive Steve Reinemund said it does not expect “current events” to materially affect the current quarter.

PepsiCo shares rose 96 cents to close at $49.89 on the NYSE.