PepsiCo has reported third quarter revenue was up 6% and yet it plans to close four Frito-Lay plants and eliminate 780 positions related to the closings.
The snack and beverage maker reported revenue of $7.3 billion, a 6% jump over $6.8 billion one year ago. The quarter ended Sept. 30. Frito-Lay division reported $2.3 billion in third quarter revenue versus $2.2 billion in 2003, a 5% change.
The company said that Frito-Lay had stepped up performance compared to the second quarter and that as part of an ongoing program to improve productivity in the unit would close plants in Allen Park, MI, Council Bluffs, IA, Beaverton, OR, and Visalia, CA. About 250 of the 780 jobs eliminated will be added to other Frito-Lay sites. A $160 million pre-tax charge will be incurred in the fourth quarter to implement the changes.
In the North America beverages unit, total volume declined 1% due to an increase in retail prices for fizzy soft drinks and a difficult retail environment, the company said. Carbonated soft drinks volume declined 4% and non-carbonated beverages grew more than 5%. Revenue was $2.2 billion, compared to $2 billion one year ago.
International maintained strong growth in both beverages and snacks and Quaker Foods North America saw a 3% increase in volume.
Network
