|
Profits at Dr Pepper Snapple Group Rise More Than 15 Percent |
 |
|
Friday, 30 July 2010 10:31 |
Second-quarter profit at Dr Pepper Snapple Group Inc. rose more than 15 percent, the Plano-based soft drink maker said Thursday, as it benefited from a bottling deal with a rival and favorable foreign currency exchange rates.
Profit for the period ended June 30 was $183 million, or 74 cents a share, up 15.8 percent from $158 million, or 62 cents a year ago. Analysts were expecting 69 cents a share.
Still, the company's stock was off 2.9 percent, closing at $37.12. Even though its sales were up 2.6 percent to $1.52 billion, analysts were expecting $1.54 billion.
In a statement, chief executive Larry Young warned that despite the gains, consumer confidence remains weak. Sales of its main Dr Pepper brand were up 3 percent, but three others -- 7UP, A&W root beer and Sunkist orange soda -- saw declines. A fifth brand, Canada Dry, grew by double digits.
Dr Pepper Snapple, the nation's third-largest soft drink maker, reaped $900 million after it signed an agreement allowing PepsiCo Inc. to continue selling Dr Pepper products after PepsiCo absorbed the two largest Pepsi bottlers. The bottlers already had contracts to distribute Dr Pepper drinks. Dr Pepper later signed a similar deal with Coke.
In a call with analysts, Young fielded a question about a lingering strike at its Motts applesauce plant in New York state.
Young offered assurances that the two sides would reach a "workable" solution and said year-to-date sales of Motts-branded products are up 8 percent. There have been no formal negotiations since the strike began, a spokesman said.
Workers went on strike May 23 after the company sought to reduce benefits, including cutting pay and trimming retirement contributions.
Copyright (c) 2010, The Dallas Morning News
|
The largest independently owned juice company in the US, Apple & Eve continues to grow with its line of pure, natural juices in an increasingly health-minded beverage market.