Pepsi Bottling tops estimates by a penny, volume flat

NEW YORK (Reuters) - Pepsi Bottling Group Inc (PBG.N: Quote, Profile, Research, Stock Buzz) on Tuesday posted a profit that beat Wall Street estimates by a penny, despite flat volume.

Pepsi Bottling, which affirmed its full-year outlook, said net income was $81 million, or 35 cents per share for the fourth quarter, which ended December 29, including charges from restructuring and the disposal of some vending machines.

A year earlier, the company posted a profit of $133 million, or 55 cents per share, including a 22 cent-per-share gain on the reversal of tax reserves.

Excluding items, the bottler earned 39 cents per share. Analysts on average were expecting 38 cents, according to Reuters Estimates.

Quarterly net revenue rose 7 percent to $4.04 billion, as price increases across all segments drove revenue per case up 8 percent. By volume, sales were flat, the company said.

Sales by volume in the United States were flat, but fell 2 percent in Mexico, as declines in traditional soft drinks and water in large jug containers offset gains in bottled water and noncarbonated drinks.

In Europe, volume fell 1 percent as growth in Russia was offset by weakness in Spain and Turkey.

Revenue was aided by foreign currency rates, which boosted the value of foreign sales when they were converted to weak U.S. dollars for inclusion in the company's income statement.

Cost of goods per case rose 7 percent, due to higher costs for the drink concentrate it buys from PepsiCo and the high-fructose corn syrup it uses to sweeten its drinks.