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PepsiCo profit misses view; to cut 3,300 jobs

NEW YORK - PepsiCo Inc reported a quarterly profit that missed Wall Street expectations, hurt by disappointing US soft drink sales.

The maker of Pepsi-Cola drinks, Frito-Lay snacks and Quaker foods also said on Tuesday that it would cut 3,300 jobs, or roughly 1.8 percent of its work force, as part of a plan to save more than $1.2 billion over three years.

Net income fell to $1.58 billion, or 99 cents per share, in the third quarter ended on Sept. 6 from $1.74 billion, or $1.06 per share, a year earlier.

Excluding losses on commodity hedges, earnings were $1.06 per share. Analysts on average were expecting $1.08, according to Reuters Estimates.

Revenue rose to $11.24 billion from $10.17 billion.

Citing a recent strengthening in the value of the US dollar, the company lowered its 2008 earnings outlook to a range of $3.67 to $3.68 per share, from a prior forecast of at least $3.72 per share, excluding items.

Pepsi shares fell 1.2 percent to $61 in premarket trading from their close of $61.77 on Monday.