PepsiCo's profit dips amid turnaround push

Pepsi bottles line the self of a supermarket in Springfield, Ill., Tuesday, July 11, 2006. PepsiCo Inc., the No. 2 soft-drink maker, said second-quarter profit jumped 14 percent, helped by sales of non-carbonated beverages. (AP Photo/Seth Perlman)

NEW YORK - PepsiCo Inc. (PEP) says its net income dipped 5 percent in the third quarter, as the food and beverage maker worked to turn around its business and bolster its flagship brands.

The company stood by its guidance for the year, however, and profit came in above Wall Street expectations.

PepsiCo says it earned $1.9 billion, or $1.21 per share, for the period. That's compared with $2 billion, or $1.25 per share, a year ago. Earnings from core operations were $1.20 per share, better than the $1.16 per share analysts expected.

Revenue fell 5 percent to $16.65 billion, partly because of unfavorable currency exchange rates and the refranchising of its business in China and Mexico. That was short of the $16.96 billion Wall Street expected.

PepsiCo is based in Purchase, N.Y.