Results were also negatively impacted by foreign currency movements, which reduced net income by $38 million, or EPS by $0.31. These results compare to third quarter 2008 reported net income of $73.1 million, or $0.58 per share, which included non-comparable items and discontinued operations that in total reduced EPS by $0.13.
The 2009 non-comparable items included a $0.06 EPS impact from a non-cash impairment charge on the company’s Sandora and Sadochok brands, resulting from the determination that the carrying value of these intangible assets exceeded their fair value.
Chairman and chief executive officer Robert C Pohlad said, “Given the challenges in our European business and volume pressures in the US, we are satisfied with our performance this quarter. We continue to execute our global pricing plans, expand our brand portfolio and drive productivity improvements, helping to offset topline pressures and currency headwinds. In the US, our take home business was particularly soft while pricing, productivity and cost management drove operating profits up 7% in the quarter. In Europe, the weaker economic trends in Romania negatively impacted revenues and operating profits in the quarter, while volumes sequentially improved in all other markets.
“We expect these topline pressures to continue for the remainder of the year. As a result, we are revising our full year 2009 adjusted EPS outlook to $1.83 to $1.87,” Pohlad continued. “The organisation continues its focus on cash flow, and we expect to generate adjusted operating cash flow at the high end of our $180 million to $200 million range.”
Source: PepsiAmericas Inc
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