Chief Executive Indra Nooyi, who was peppered with difficult questions by experts during a anxious conference call, said the lowered longer-term view was prudent given the uncertain monetary conditions.
"We don't know what the item markets are going to look like within 2012 and past," Nooyi said about the call. "We do not know what the created market economic situation is going being, whether it's likely to improve robustly or whether the slowness is going to keep."
The results come a day following rival Coca-Cola Co (KO.N) amazed the market with sales volume increases in all of its segments. [ID:nN08101124]
The creator of Pepsi-Cola and Frito Lay snack foods saw its explains to you fall 2 pct in morning buying and selling, despite posting fourth-quarter product sales and earnings which beat Wall Road estimates. Coca-Cola shares were up slightly.
PepsiCo said it now expects 2011 earnings to go up 7 percent to eight percent, with large single-digit growth beyond that. That had earlier outlook low double-digit percentage rate growth for next year and 2012.
However given the uneven economic recovery and the spikes in product prices, Pepsi's predict was not bad, said James Tierney, chief investment officer of Hubpages Stewart and the PepsiCo shareholder.
"Relative to the industry, PepsiCo is one of the best houses in a very tough neighborhood," Tierney said.
PepsiCo Chief Financial Officer Hugh Johnston stated the company expects commodity costs to rise $1.4 thousand to $1.six billion, or eight percent to 9.5 percent, this year, but that PepsiCo will be careful not to raise prices so much as to alienate consumers.
Morningstar analyst Phil Gorham noted that the organization took on much more exposure to product costs when this bought its 2 largest bottlers a year ago.
No comments:
Post a Comment