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Pepsi Bottling posts higher net, raises outlook

NEW YORK - Pepsi Bottling Group Inc. PBG.N on Tuesday reported higher quarterly profit, helped by price increases it placed on its drinks, and raised its full-year forecast.

The largest bottler of PepsiCo Inc. PEP.N beverages said net income had increased to $162 million, or 70 cents per share, in the second quarter ended on June 16 from $148 million, or 61 cents per share, a year earlier.

Analysts on average were expecting 63 cents per share from the company, which operates in North America, Russia, Spain, Turkey and Greece.

Revenue rose to $3.36 billion from $3.14 billion.

Worldwide sales by volume was up 1 percent as growth in Europe helped offset a decline in Mexico and flat results in the United States.

Pepsi Bottling, which is facing soaring prices for the aluminum it uses for cans and the high fructose corn syrup it uses for sweetener, has seen its gross margins under pressure for some time, but the company said that strong price increases had more than offset a 6 percent rise in costs.

The company, based in Somers, New York, raised its earnings forecast for the full year to a range of $2.02 to $2.07 per share, from a prior outlook of $1.90 to $1.98.