UPDATE 4-Pepsi Bottling profit tops view; outlook raised

* Q1 adj EPS 10 cts, tops Street view of 5 cts

* Raises '09 EPS view to $2.20-$2.30 from $2.15-$2.25

* Says appointed committee to evaluate Pepsi takeover bid

* Shares up 1 pct
(Adds comments from conference call, updates share activity)

By Martinne Geller

NEW YORK, April 22 (Reuters) - Pepsi Bottling Group Inc
(PBG.N) reported a higher than expected quarterly profit and
raised its full-year earnings forecast on Wednesday, helped by
price increases and cost cuts.

The company also said its board appointed a special
committee of independent directors to evaluate this week's
unsolicited takeover bid by PepsiCo Inc (PEP.N), its largest
shareholder and supplier.

Pepsi Bottling shares were up 1 percent at $30.47.

PepsiCo has offered to buy its two largest bottlers, Pepsi
Bottling and PepsiAmericas Inc (PAS.N), as it seeks to secure
more control of its distribution in North America, where sales
have been suffering amid a recession and changing consumer
tastes.

Pepsi Bottling said it would respond to PepsiCo "in due
course."

Pepsi Bottling Chief Executive Eric Foss declined to discuss
the bid in detail on a midday conference call, though he
defended the current, decentralized system.

"My assessment is that it has worked well and I think can
continue to work well as I look at what we have to deal with
right now in the marketplace," Foss said.

The company said it was on track to achieve more than $250
million in cost savings this year. That is more than the $200
million a year in savings that PepsiCo said would come from its
acquisition of both bottlers, Credit Suisse analyst Carlos Laboy
noted.

"PBG picked the right quarter to make its case that the cost
reduction program is in full force and ahead of expectations,"
Laboy said in a research note. "The counter bid discussion is
clearly on."

PROFIT BEATS CONSENSUS

Pepsi Bottling said net income rose to $57 million, or 27
cents per share, in the first quarter ended March 21 from $28
million, or 12 cents per share, a year earlier.

Excluding restructuring charges and a benefit from settling
tax audits, it earned 10 cents per share, double the analysts'
average forecast of 5 cents, according to Reuters Estimates.

Sales fell 5 percent to $2.51 billion, hurt by the weak
global economy and the stronger U.S. dollar, which reduces the
value of overseas sales. Revenue fell 1 percent in the United
States and Canada.

The company said total sales by volume fell 5 percent as
this year's later Easter pushed holiday-related business into
the second quarter after landing in last year's first quarter.

Volume fell 3 percent in the United States and Canada, 7
percent in Mexico and 16 percent in Europe.

Revenue per case, excluding the impact of currency
fluctuations, rose 5 percent as the company was able to increase
prices across its markets, which include Greece, Spain and
Turkey in addition to North America.

Pepsi Bottling raised its 2009 earnings forecast to a range
of $2.20 to $2.30 per share from a prior outlook of $2.15 to
$2.25, citing its strong first quarter and confidence in its
plans for the rest of the year. The forecast still includes a
hit of 18 cents per share from currency.

Analysts on average expected a 2009 profit of $2.20 per
share.

Pepsi Bottling said it expects to earn 65 to 69 cents per
share in the current second quarter, below analysts' average
estimate of 72 cents.

The company said earnings growth will be stronger in the
second half of the year than in the first.
(Reporting by Martinne Geller; Editing by Lisa Von Ahn, John
Wallace and Matthew Lewis)