Dr Pepper Snapple Group Inc. (DPS), a leading producer of flavored beverages in North America and the Caribbean, reported strong third-quarter earnings of 59 cents per share, compared to 41 cents in the year-earlier quarter. Excluding the one-time non-recurring items, earnings for the quarter came at 54 cents per share versus 45 cents in the year-ago period.
 
Bottler case sales volume increased 4% during the quarter year over year with carbonated soft drinks growing 5% and non-carbonated beverage sales up marginally. On a geographic basis, volume sales increased 4% in North America and 9% in Latin America.
 
Net sales of Beverage Concentrates increased 14% during the quarter due to extensive distribution of Crush-brand. Segment operating profit increased 25% year over year. In the Packaged Beverages segment, net sales decreased 1% with a 1% dip in sales volume. However, segment operating profit increased 42% due to lower packaging and transportation costs and continued operating efficiencies.
 
During the quarter, Dr Pepper reported a 9% increase in sales volume growth in Latin America Beverages. Segment operating profit, however, remained flat during the quarter largely due to higher selling and distribution costs. The company decreased its corporate and other items expenses to $65 million during the quarter compared to $69 million in the year-ago quarter.
 
Year-till-date, Dr Pepper generated $701 million of cash from operating activities with a capital expenditure of $218 million. During the first nine months of 2009, the company also repaid $480 million of debt, and had no significant debt maturities before 2011.
 
For the full year, the company expects reported earnings in the range of $2.12 – $2.16 per share with a 3% – 4% decline in net sales. Excluding non-recurring items, earnings for the year are expected in the range of $1.92 – $1.96 per share.
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