updated 7/12/2005 9:30:58 AM ET 2005-07-12T13:30:58

PepsiCo Inc., the world’s second-largest beverage maker, said Tuesday that its second-quarter profit grew 13 percent as sales of snack foods and soft drinks increased both domestically and abroad.

Shares of PepsiCo advanced $1.39, or 2.6 percent, to $55.24 during premarket activity.

Quarterly earnings rose to $1.19 billion, or 70 cents per share, for the 12 weeks ended June 11 from $1.06 billion, or 61 cents, in the year-ago period. PepsiCo’s income topped the average estimate of 67 cents per share from analysts polled by Thomson Financial.

Net revenue totaled $7.7 billion, a gain of 9 percent from $7.07 billion a year earlier and above analysts’ consensus target of $7.56 billion.

By division, sales at the company’s Frito-Lay North America unit expanded 6 percent to reach $2.37 billion, while revenue from PepsiCo Beverages North America grew 4 percent to $2.22 billion and PepsiCo International jumped 15 percent to $2.76 billion.

Revenue at Quaker Foods North America also increased 16 percent to $350 million from $303 million the year before, PepsiCo said.

The company updated its full-year earnings outlook, saying it now expects 2005 profit of $2.56 to $2.59 per share, excluding the impact of a 53rd week. Including the extra week — which is projected to boost earnings by 4 cents to 5 cents per share — PepsiCo is forecasting profit per share of $2.60 to $2.63.

Analysts are looking for operating earnings of $2.58 per share, on average, for fiscal 2005. It was not immediately clear whether these estimates include the impact of the 53rd week.

PepsiCo also said it is evaluating whether to repatriate undistributed international earnings in 2005 under the provisions of the American Jobs Creation Act. The company said it believes it can repatriate a maximum amount of $7.5 billion. PepsiCo said its earnings guidance doesn’t take any repatriation into account.

Copyright 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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