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The Pepsi-Cola beverages maker currently projects second-quarter comparable earnings to range between $0.70 and $0.74 per share, up 5 cents from the previously communicated range of $0.65 - $0.69 per share.
On average, 11 analysts polled by Thomson Reuters expect the company to report earnings of $0.70 per share. Analysts' estimates typically exclude special items.
Reported earnings are now estimated to be in the range of $0.90 - $0.98 per share for the second quarter of fiscal 2009.
For fiscal 2009, the Somers, New York-based company now expects comparable earnings to range between $2.30 and $2.40 per share, a 10 cents increase from its prior issued guidance range of $2.20 - $2.30 per share. Fourteen Wall Street analysts have a consensus revenue estimate of $2.25 per share for the full year.
Pepsi Bottling, which recently rejected an acquisition proposal by food and beverage giant PepsiCo Inc. (PEP | Quote | Chart | News | PowerRating), stating the offer at an opportunistic timing is "grossly inadequate," currently sees full year reported earnings in a range of $2.45 - $2.68 per share, compared to its earlier outlook range of $2.11 - $2.31 per share.
Pepsi Bottling expects to record additional pre-tax charges of $52 million - $82 million in the remainder of 2009, relating the previously announced restructuring program to enhance the company's operating capabilities in each of its reportable segments. Since the inception of the program and through the first quarter of 2009, the company incurred pre-tax charges of $88 million. These charges are primarily for severance and related benefits, pension and other employee-related costs and other charges, including relocation and asset disposal costs.
Also, the company expects to record a tax benefit in the range of $55 million - $60 million, or $0.24 - $0.27 per share, which will be reflected in income tax expense.
Full-year 2009 operating free cash flow or OFCF is now projected to be about $525 million, up from the previously issued target of $500 million, and capital expenditures are currently estimated to be in the range of $550 million - $600 million, versus prior outlook range of $550 million - $600 million.
Additionally, cash provided by operations plus the excess tax benefits from the exercise of equity awards are projected to be over $1 billion.
Eric Foss, Chairman and Chief Executive Officer of Pepsi Bottling, said, "PBG's strong start to the year has continued in the second quarter. Improving fundamentals in our U.S. and Canada business, coupled with the success of our global pricing strategy, are producing solid results. We're also delivering significant cost and productivity savings and superior execution at the point of sale."
Simultaneously, the company is witnessing favorable trends within its sector as well as in the commodity and foreign currency markets. Therefore, the company's performance continues to exceed its expectations.
Further, Pepsi Bottling noted that its focus for the future would remain on strengthening its brand portfolio, transforming performance through operational excellence, and pursuing geographic growth opportunities.
Foss added, "As global economies recover and the liquid refreshment category rebounds, PBG will be well positioned to win in the marketplace and create shareholder value."
Pepsi Bottling shares, which have been trading between $15.78 and $33.25 in the past 52 weeks, closed Monday's trading session at $33.21.
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