Friday, October 9, 2009

“Analyst raises estimates on PepsiCo for 2009, 2010 - WCAX” plus 4 more

“Analyst raises estimates on PepsiCo for 2009, 2010 - WCAX” plus 4 more

Analyst raises estimates on PepsiCo for 2009, 2010 - WCAX

Posted: 09 Oct 2009 08:05 AM PDT

MILWAUKEE (AP) - An analyst on Friday raised his estimates for PepsiCo Inc., saying the soft drink and snack maker had better-than-expected pricing and profit margins in its third quarter, particularly in its international division.

The Purchase, N.Y.-based company said Thursday its fiscal third-quarter profit rose 9 percent, beating analyst estimates, thanks in part to cost-cutting, even as revenue slipped 1 percent.

Janney Smith analyst Jonathan Feeney told clients in a note the result was driven by international performance.

The company's international segment posted a 13 percent rise in revenue and 31 percent gain in operating profit. Revenue gained in Europe, Asia, the Middle East and Africa. Feeney said the gains, coupled with better cost controls, boosted profit.

Performance in Latin American foods, the company's Frito-Lay snack business, and its Quaker unit all were as strong or better than he expected, Feeney wrote. The company's Americas beverage business, with a 6 percent drop in volume and a 9 percent revenue decline, was weak again. Consumers are switching from sodas to healthierjuices and teas. Feeney also said the company's Gatorade brand is having a slow turnaround and people are drinking more tap water, which is free.

The company is on track to buy its two biggest North American bottlers, the analyst said. PepsiCo announced the $7.8 billion deal in August, saying owning the bottlers would help the company be quicker to market with new products and react better as consumers change their drinking habits.

PepsiCo said it expected earnings per share to rise between 11 percent and 13 percent in fiscal 2010, which Feeney said implies a range of $4.16 to $4.24, without the effects of foreign currency exchange.

Feeney said the guidance includes the bottler deal, which is expected to close late this year or early next year. He said management has been "abundantly clear" that it will reinvest in the business, which he said means PepsiCo could deliver more than its promised savings from the deal - about $300 million - by removing overlapping costs.

Feeney raised his fiscal 2010 estimates by 16 cents to $4.17, and his fiscal 2009 estimates by 6 cents to $3.75. According to Thomson Reuters, analysts on average predict earnings per share of $3.73 in fiscal 2009 and $4.11 in fiscal 2010.

He raised his price target from $68 to $70. UBS analyst Kaumil Gajrawala on Thursday raised his price target from $66.50 to $71, saying the company has "reinvestment flexibility" due to its savings programs, easing foreign currency challenges and benefits from the bottler deal.

Shares fell 38 cents to $60.01 in morning trading Friday.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

U.S.-Africa Business Summit: African business goes where it is most ... - Afrik

Posted: 09 Oct 2009 08:13 AM PDT

Appearing as part of a presidential plenary session at the summit, Mills said "nothing else matters" but creating the "necessary environment to promote business, either locally or to attract foreign direct investment," which, he said, "has no fixed allegiance or nationality, but goes where it is most welcome."

Mills, a law professor and former Fulbright scholar, appeared at the plenary along with three other African heads of state: President Paul Kagame of Rwanda, President Fradique Bandeira Melo de Menezes of Sao Tome and Principe and President Denis Sassou-Nguesso of the Republic of the Congo. They were joined by Jean Ping, chairman of the African Union Commission and a former foreign minister of Gabon. All echoed the need for greater regional integration across Africa.

Africa needed now more than ever

Mills said Ghanaians have realized one thing: "We cannot go it alone. The days of xenophobia are over. Now there is interdependence among states and we believe that charity begins at home." For that reason, he said, "the issue of regional integration is very important."

There are many reasons why people want to invest in Africa, he told his audience of business executives, entrepreneurs and government officials attending the three-day Washington event.

People want markets for their products, Mills said, and they want to invest where they find political stability and "an ease of doing business" in a low-cost environment. Thus, he said, regional integration in Africa is needed now more than ever. "The people who voted us into power don't owe us anything," Mills said. "They only want us to improve their standard of living. … What do our people have but hope for a better future? And we cannot disappoint them."

Follow through

Echoing that point, Rwandan President Paul Kagame — whose government has been voted the top world reformer in the recently published World Bank report Doing Business 2010 — said his government and citizens are working to be the "best we can be" in their quest for prosperity. "What we have done is what other people can do. It is not magic," he said. "We have focused on stabilizing our country, making sure there is peace and security … [and] institutions of governance that deliver the public good as required."

Kagame said his government is interacting globally, while working within a regional setting. He said his government has tried to make it easy to do business in Rwanda by working with international partners to help streamline the process, eliminate obstacles and make sure the process works. "You can have good laws, you can have good regulations, you can have all kinds of things very well written on the paper and very impressive, but if you don't follow through … things will go wrong." Infrastructure is crucial to facilitate business, he said. "You cannot talk about an increased volume of trade when there are no roads, there are no rails, and there are problems of air transport. … At the same time, you cannot talk about increased investments unless you can show that you can provide electricity for industry. You cannot talk about communication and all that comes with it … unless you are able to put in place the Internet" and make it accessible and linked to international networks. "The best way to fight poverty is through business," Kagame said. Regional integration

President Fradique Bandeira Melo de Menezes of the island nation of Sao Tome and Principe also talked about regional integration and its importance to Africa's development process. Sao Tome and Principe operates a joint development zone with Nigeria, has linked its currency to the euro through Portugal and established an investment code to aid foreign investors. "We believe that we cannot develop as a country without regional integration," he told his audience.

While the country is primarily agricultural, with large cocoa exports, he said, its oil revenues are deposited into a transparent account with the U.S. Treasury to protect the revenues for future generations. President Denis Sassou-Nguesso of the Republic of the Congo also urged regional integration. More than 100 million consumers can be found in the Congo Basin and surrounding region, with 10 countries and a huge potential new market. What is needed, he said, is coordinated economic development in infrastructure, roads, railways, airports and electricity.

Intra-African trade

Jean Ping, representing the African Union, said building infrastructure and improving regional integration will bolster intra-African trade. Africa today is divided by 165 borders, among 53 countries. "So you can see the necessity for us to combine our efforts," he told his audience. The African continent has 1 billion inhabitants, according to the United Nations, Ping said, and is forecast to have 1.4 billion inhabitants in 2020. "We live in a world which is characterized by globalization … and regional integration," he said, noting that the Economic Community of West African States (ECOWAS) and the Southern African Development Community (SADC) are two African organizations working toward greater regional integration.

"Africa simply wants to be a continent like others … free from need … free from fear — the fear of tyranny … violence and … war," Ping said. "We want to live in peace."

First Citizens to sell bond business - Greensboro Business Journal

Posted: 09 Oct 2009 07:58 AM PDT

First Citizens BancShares Inc. has agreed to sell its bond-trustee business to Minneapolis-based U.S. Bank.

Neither U.S. Bank nor Raleigh-based First Citizens (NASDAQ:FCNCA) disclosed terms of the agreement.

U.S. Bank (NYSE:USB) will have $2.4 trillion in assets under administration after the purchase. The company says the deal will help it grow its corporate banking and fixed-income presence in the Southeast.

"This acquisition is consistent with U.S. Bank's ongoing commitment to continued strategic business investments in the current economic climate," says Diane Thormodsgard, vice chair of U.S. Bancorp Wealth Management & Securities Services. "This transaction complements the existing U.S. Bank bond trustee business in North Carolina, South Carolina and Virginia."

Super Suppers to go out of business - Statesman Journal

Posted: 09 Oct 2009 08:41 AM PDT

Super Suppers, 2290 Commercial St. SE, will close its doors at the end of the month, and its owners cite the poor economy.

"Due to the declining economy both globally and here locally, we have decided to close your Salem South Super Suppers," said owners Teresa and Teddy Walters in a posting at www.supersuppers. com.

Super Suppers is a national chain that offers take-and-bake meals to help families plan for dinner around busy schedules.

The last day of operation will be Oct. 30. Normal business hours will continue until then and menus will be posted.

The shop is open Tuesday through Friday 11 a.m. to 6 p.m. and Saturday by appointment only. The price of a regular meal is $13 or a family meal for $23. A package of six family meals costs $125 and a package of 12 costs $225.

Gift certificates previously purchased must be redeemed by Oct. 30.

"This decision was not an easy one," the Walterses said about the closure.

"We have enjoyed our experience here and the relationships made with our loyal customers and friends."

For information, call (503) 378-7737.

— Tarah Campi

Kimberly-Clark expands health care business - Everything Alabama Blog

Posted: 09 Oct 2009 08:20 AM PDT

By The Associated Press

October 09, 2009, 10:03AM

Kimberly-Clark Corp. said today that it will add higher-margin medical devices to its health care unit by purchasing health care company I-Flow Corp. in a cash deal valued at approximately $276 million excluding acquired cash and cash equivalents.

Kimberly-Clark, maker of Huggies diapers and Kleenex tissues, will start a tender offer to buy all of Lake Forest, Calif.-based I-Flow's outstanding stock at $12.65 per share, or about $324 million. The per share price represents an 8 percent premium to I-Flow's Thursday closing price of $11.76.

The planned acquisition follows a Monday announcement by Kimberly-Clark in which the Dallas-based company said it bought Baylis Medical Co.'s pain management business for an undisclosed sum.

Kimberly-Clark employs 650 employees at its plant on Bay Bridge Road in Mobile, where it produces towels and toilet tissue.
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