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PURCHASE, N.Y. -- PepsiCo Inc.'s fourth-quarter earnings dropped to $719 million, compared with $1.26 billion a year earlier. The world's second-largest beverage maker attributed this partly to restructuring and impairment charges.
Excluding the restructuring and impairment charges and other items, net income was $1.39 billion, which matched analysts' average earnings expectation of 88 cents per share, according to Thomson Reuters.
PepsiCo's revenue climbed 3 percent to $12.73 billion from $12.35 billion. Analysts forecasted revenue of $12.8 billion.
The stronger dollar hurt quarterly earnings and also suppressed revenue growth, according to PepsiCo.
PepsiCo Americas Foods revenue climbed 5 percent in the quarter, while Frito-Lay North America reported 7-percent sales growth. Quaker Foods North America revenue grew 2 percent and Latin America Foods' sales edged up 1 percent.
PepsiCo Americas Beverages posted a 10-percent sales decline partly due to the overlap of the debuts of G2 and SoBe Lifewater in the year-ago period and shipment timing related to its North American beverage revitalization. The revitalization effort includes new brand identities for products such as Gatorade, Pepsi, Sierra Mist and Mountain Dew, and a new SoBe Lifewater formulation.
Full-year net income declined 9 percent to $5.14 billion, compared with $5.66 billion in the prior year. Adjusted earnings were $5.89 billion.
Annual revenue rose 10 percent to $43.25 billion from $39.47 billion.
The company expects mid to high single-digit growth for 2009 earnings and revenue. PepsiCo predicts the first half of the year, especially the first quarter, will have the hardest year-over-year comparisons partly due to commodity costs and the stronger dollar.