Tuesday, 18 November 2008

Pepsi Bottling to cut jobs, trims forecast

NEW YORK (Reuters) - The Pepsi Bottling Group Inc announced restructuring plans on Tuesday that would eliminate some 3,150 jobs and cut its forecast for full-year earnings due to weaker foreign currencies.

It said its multiyear restructuring plan should yield $150 million to $160 million in annualized pretax savings when completed, starting with savings of about $70 million in 2009.

In the United States and Canada, Pepsi Bottling said it would streamline its selling and service organization and supply chain infrastructure, moves that would affect about 750 jobs. Plans to close plants and distribution centers in Mexico would affect 2,200 jobs there.

Similar actions in Europe will affect about 200 jobs, the company said.

The company expects cumulative charges from the plan of $140 million to $170 million, with a charge of 27 cents to 32 cents per share expected in the fourth quarter of 2008.

Pepsi Bottling said it now expects earnings per share of $2.20 to $2.26 for the full year, compared with a previous view of $2.32 to $2.38, due to foreign currency changes and a higher-than-expected interest cost on a recent bond issue.

Including its restructuring plan and an asset impairment charge, it forecast full-year earnings of 62 cents to 73 cents per share.

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