PepsiCo's Positive Surprise

Despite a 1% decline in the Americas beverage business PepsiCo Inc reported that its net income rose to $1.7 billion, in the second quarter that ended June 14, net revenue rose 14% to $10.95 billion.

 The maker of Pepsi-Cola, Frito-Lay
snacks and Quaker Oatmeal said company-wide sales by volume rose 5%,
2% in the Americas foods business, 10% in the international snacks
business and 13% in the international drinks business.

Since PepsiCo makes a wide range of
products and does business in many countries, it has had an easier
time offsetting the industry-wide pressures of soaring commodity
costs and a US economic slowdown.

The weakness of the US dollar against
many other currencies increases the value of overseas sales when
they are converted to dollars for inclusion in companies' income
statements.

PepsiCo also affirmed its 2008 sales
volume and earnings outlook, saying it still expects volume to rise
3% to 5%, company expects net revenue growth at a low double-digit
percentage rate.