PepsiCo lowers top end of 2009 revenue, profit view

The company, which reiterated its 2010 guidance on Tuesday, said it also reached a distribution agreement for certain Dr Pepper Snapple Group Inc brands.

The food and beverage company now expects fiscal 2009 PEPSICO (PEP.NY)constant currency net revenue to be up about 5 percent. It also sees earnings per share increasing about 5 to 6 percent in constant currency.

The company previously said it expected 2009 net revenue and core earnings per share to rise at a mid-to-high single-digit percentage rate on a constant currency basis.

Based on core earnings of $3.68 per share in 2008, PepsiCo is forecasting a 2009 range of $3.86 to $3.90 -- still well above Wall Street's expectations for $3.76, according to Thomson Reuters I/B/E/S.

PepsiCo said it continued to expect fiscal 2010 constant currency earnings per share growth of 11 percent to 13 percent, excluding items.

The company also inked a manufacturing and distribution agreement covering certain Dr Pepper Snapple products following PepsiCo's proposed acquisition of Pepsi Bottling Group and PepsiAmericas Inc .

Under the deal, Dr Pepper Snapple will license certain brands to PepsiCo upon completion of PepsiCo's purchases of the bottlers. Additionally, Dr Pepper Snapple will receive a one-time upfront payment of $900 million, before taxes and other related fees and expenses.

Under a new licensing agreement that replaces existing agreements with the bottlers, PepsiCo will distribute Dr Pepper, Crush and Schweppes in the United States; Dr Pepper, Crush, Schweppes, Vernors and Sussex in Canada; and Squirt and Canada Dry in Mexico.

The new agreement will have an initial term of 20 years, with 20-year renewal periods, and will require PepsiCo to meet certain performance conditions.

PepsiCo shares fell 0.8 percent to $63.00 in after-hours trading, from a regular-session close of $63.48 on the New York Stock Exchange.

(Reporting by Lisa Baertlein; Editing by Phil Berlowitz and Richard Chang)