I guess people aren't drowning their financial sorrows with cola. And now PepsiCo Inc. (NYSE: PEP) shareholders have plenty to be sorry about.
The perennial silver medal winner in the great cola olympics announced weaker than expected sales in North America for the third quarter. Sales were down by 3% and profits down by 9% as consumers presumably reacted to worsening economic conditions by cutting back on everyday luxuries like sugar water in its myriad forms.
In response to the poor results, PepsiCo announced that it will cut 3,300 jobs from its global workforce of 185,000. It will also close six plants. Savings from the cuts and closings were estimated to be $1.2 billion over three years.
Pepsi also said that it will get back to the basics of selling relatively inexpensive bubbly soda to consumers. This is a reversal of its recent emphasis on more expensive juices and energy drinks. As the economy worsens, consumers will presumably cut back on such items.
PepsiCo closed yesterday at $61.77 and is trading at $56.13 as of 1:10 pm, down 9%.
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Reader Comments (Page 1 of 1)
10-14-2008 @ 8:50PM
Stacie said...
My brother-in-law works for Pepsi. He's a Advertising rep. He gets lavish trips fly fishing in Canada, sporting events tickets, and has even got Pepsi to pay for his home in Florida. If they cut back on the over giving of thier employers than they can afford to keep the short paid working class.
10-15-2008 @ 12:47AM
Gary said...
Stop bitching, you stupid people you did it to your self, You stopped buying american made products, you sent all the money to china now you want to cry. Think about it when you go into the VOTING BOOTH, lets put the same a** holes that got us in this mess back in control so they can finish running america into the ground, P/S lets put americans back in control.