Pepsi Bottling Post 4Q Profit After 2008 Write-Down

Pepsi Bottling Group Inc. (PBG) reversed a prior-year loss in the fourth-quarter caused by restructuring charges and write-downs. Meanwhile in the latest quarter, revenue was flat as volume declined.

Signs began to emerge late last year that the soda industry - which has been battling weakened volume for some time--has seen the worst effects of the recession. Easing commodities costs and reduced foreign-exchange pressures helped boost results in the prior quarter.

The world's largest Pepsi bottler and PepsiAmericas Inc. (PAS) are being acquired by PepsiCo Inc. (PEP) in a $7.8 billion deal that is expected to close by the end of the current quarter.

Pepsi Bottling reported a profit of $90 million, or 40 cents a share, compared with a prior-year loss of $271 million, or $1.28 a share. Excluding items such as prior-year write-downs and tax-law changes, earnings rose to 59 cents from 30 cents.

Revenue was flat at $3.81 million, but excluding foreign-exchange impacts was up 3%. Global case volume fell 3%.

Analysts polled by Thomson Reuters most recently forecast earnings of 43 cents on revenue of $3.83 billion.

Gross margin fell to 43.9% from 44.6%.

Shares closed Monday at $37.63 and didn't trade premarket. The stock has nearly doubled in the past year.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]