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PepsiCo earnings rise
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April 19, 2000: 12:34 p.m. ET
Despite pressure on U.S. soft drink unit, profit beats estimates by a penny
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NEW YORK (CNNfn) - PepsiCo Inc. edged past analysts' first-quarter earnings expectations Wednesday despite a decline in operating profit from its North American soft drink operations.
The Purchase, N.Y.-based company earned $422 million, or 29 cents per share, for the quarter ended March 18, up sharply from the $333 million, or 22 cents per share, a year earlier. Analysts polled by First Call Corp. expected Pepsi to post a profit of 28 cents per share.
Earnings were driven by stronger results in the company's Frito-Lay snack division and its international operations, which include Sabritas, Mexico's largest snack maker, and Walker's in the United Kingdom.
 Frito-Lay profit jumped 10 percent to $379 million, driven by favorable commodity costs and higher than expected volumes, particularly among new products.
Earnings from the company's rapidly expanding international operations climbed 27 percent to $99 million, while from the company's Tropicana division soared 70 percent to $60 million.
However, operating profit from Pepsi's core North American operation fell 8 percent during the quarter, reflecting higher prices in retail outlets, which slowed the growth of soft drink volume during the quarter. Company officials hope the new Pepsi Challenge marketing campaign and continued strong growth from the Aquafina brand help reverse that trend during the second quarter.
Overall sales for the quarter rose 7.9 percent to $4.19 billion, again led by Frito Lay and international operations.
PepsiCo (PEP: Research, Estimates) shares were unchanged at 35-11/16 in late morning trading Wednesday. 
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PepsiCo
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