Soft drink and snack maker PepsiCo reported higher quarterly profit today as strong international results helped offset weakness in the United States resulting from the soft economy and rising commodity costs.
The maker of Pepsi-Cola, Gatorade sports drink and Lay's potato chips said net income for the first quarter was $1.15 billion, or 70 cents per share, up from $1.10 billion, or 65 cents per share, a year earlier.
Net revenue rose to $8.33 billion from $7.35 billion a year before.
PepsiCo and other companies that have large exposure to international markets are getting a boost this quarter as the weakness of the US dollar versus many other currencies inflates the value of overseas sales when they are converted to US dollars for inclusion in the company's income statement.
The company said it expects 2008 performance to be in line with its long-term targets, with volume rising 3 to 5 per cent, net revenue growing at a high single-digit percentage rate and earnings per share of at least $3.72.
PepsiCo said it expects full-year worldwide commodity costs to rise 9 per cent to 10 per cent and its tax rate to be about 27.5 per cent.