(RTTNews) - Soft drinks manufacturer PepsiAmericas, Inc. (PAS: News ) Wednesday reported a decline in net profit for the third quarter of fiscal 2009, negatively impacted by foreign currency movements, one-time impairment charge and lower net sales. The company also lowered its adjusted earnings guidance for full year 2009.

For the third quarter, net income attributable to PepsiAmericas was $63.5 million or $0.51 per share compared to $73.1 million or $0.58 per share in the prior-year quarter. On an adjusted basis, attributable net income fell to $72.2 million or $0.59 per share from $80.2 million or $0.64 per share in the 2008-year period.

On average, nine analysts polled by Thomson Reuters expected PepsiAmericas to earn $0.62 per share for the quarter. Analysts' estimates typically exclude special items.

The Minneapolis, Minnesota-based company stated that its results were negatively impacted by foreign currency movements, which reduced the quarter's net income by $38 million or $0.31 per share.

During the third quarter, PepsiAmericas incurred a one-time impairment charge amounting to $17.4 million in relation to the company's Sandora and Sadochok brands. The company stated that the non-cash charge resulted from the company's determination that carrying value of indefinite life intangible assets exceeded fair value.

Net sales for the period dropped 15% to $1.13 billion from $1.33 billion in the third quarter of fiscal 2008. PepsiAmericas said comparable currency neutral revenue fell 3% as a result of volume declines in both the U.S. and Central and Eastern Europe, or CEE, offset partly by strong net pricing across all geographies. Analysts expected the company to generate revenues of $1.22 billion during the quarter.
PepsiAmericas stated that its take home business in the US was particularly soft while pricing, productivity and cost management increased operating profits by 7% in the quarter. In Europe, the company added that weaker economic trends in Romania negatively impacted revenues and operating profits in the quarter, while volumes sequentially improved in all other markets.

Comparable volume for the period declined 9%, and CEE volume slipped 9.3%. PepsiAmericas added that US volume decreased 8.9% including more than 3 percentage points from quarterly shift in Fourth of July holiday.

During the quarter, selling, delivery and administrative expenses, or SD&A, incurred by the company fell to $334.6 million from $388.8 million a year earlier. In the third quarter, PepsiAmericas recorded a fee of $1.8 million in SD&A, with regard to pending merger with PepsiCo, Inc. In August, PepsiAmericas had signed deal to merge with PepsiCo along with its peer The Pepsi Bottling Group.

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