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PepsiAmericas Q2 2007 Earnings Call Transcript

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2007-07-25 14:17:29.0

Tags: PepsiAmericas

Question-and-Answer Session

Operator

[Operator Instructions]. And for our first question, we go to Lauren Torres with HSBC.

Lauren Torres - HSBC

Good morning.

Robert C. Pohlad - Chairman and Chief Executive Officer

Good morning, Lauren.

Lauren Torres - HSBC

I am not sure if I missed this in your prepared remarks, but how much did acquisitions help you out on the net incline [ph] in the quarter?

Alexander H. Ware - Executive Vice President and Chief Financial Officer

Lauren, it's Alex, good morning. Acquisitions for us in the quarter, we had, Romania contributed roughly $0.05 of our growth year-over-year on acquisitions.

Lauren Torres - HSBC

And also two just quickly, I think you touched upon single-serve. What was the balance there for the U.S. in the quarter single-serve versus take-home?

Alexander H. Ware - Executive Vice President and Chief Financial Officer

Well Lauren, our single-serve business as Bob mentioned was up 1%, our take-home business was down 4%.

Lauren Torres - HSBC

All right. And also just more generally speaking, I was hoping you could talk about your thoughts behind your raised guidance. And obviously we saw a benefit in the quarter from acquisitions and currency, and just a good pricing environment. But I was hoping if you could just generally more talk about it with respect to your longer term outlook. You mentioned a better balance between volume and pricing in the U.S. I was just hoping if you could kind of elaborate on that a bit as far as how we plan to get there from where we are today?

Alexander H. Ware - Executive Vice President and Chief Financial Officer

Sure. Lauren, it's Alex, I'll take that. I think one of the simple way to look at this is, is taking our growth from where we ended 2006 through to the end of 2007. And if you run to the middle of our revised guidance roughly $1.58 that's a $0.26 improvement versus last year's $1.32. In Q1 we were up $0.05, in Q2 we were up $0.10, so that leaves $0.11 for the balance of the year for us to drive that growth.

We expect a majority of that growth to come on the international side with Romania and CEG contributing meaningfully to that. Expect the U.S. business to be slightly softer than that. In addition, we have the negative impact of the hedge which drives $0.02 downside which effectively will offset the tax upside of $0.02 that we'll see balance of year. And then we have a $0.02 to $0.03 dilution from Ukraine. So the combination of those factors is how we expect to be able to deliver the $0.11 growth versus prior year.

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