Dr Pepper profit misses view; '08 outlook cut

Source: Reuters

Date :11/13/2008 8:15:40 AM

Dr Pepper Snapple Group Inc reported a smaller-than-expected third-quarter profit on Thursday and cut its full-year outlook, due in part to weakening economies in the U.S. and Mexico and the strengthening U.S. dollar.

In its first full quarter as a stand-alone business, the third-largest U.S. soft drink maker said earnings fell to $106 million, or 41 cents per share, from $154 million, or 61 cents per share, a year earlier.

Excluding charges from its recent separation from Britain's Cadbury Plc and other items, the company earned 45 cents per share. Analysts on average were expecting 51 cents, according to Reuters Estimates.

The maker of Sunkist, 7UP and Schweppes ginger ale said quarterly net sales fell to $1.51 billion from $1.54 billion, and volume fell 1 percent, due to losing distribution of Glaceau drinks after that company was acquired by Coca-Cola Co .

Excluding the impact of Glaceau, sales rose 5 percent, and volume rose 1 percent, the company said.

For 2008, Dr Pepper said it now expected earnings of $1.83 to $1.86 per share, excluding special items, on net sales growth of 1 percent. Its prior view called for profit of at least $1.94 per share on sales growth of 3 percent to 5 percent.

(Reporting by Martinne Geller; Editing by Lisa Von Ahn)

NEW YORK (Reuters)