PepsiCo posts flat sales; cuts jobs and issues bonuses

FILE - In this July 9, 2015, file photo, Pepsi bottles are on display at a supermarket in Haverhill, Mass. PepsiCo reports financial results Tuesday, Feb. 13, 2018. (AP Photo/Elise Amendola, File)
FILE- In this Aug. 18, 2016, file photo a Pepsi truck delivers products to vendors at the Illinois State Fair in Springfield, Ill. PepsiCo serves up its latest quarterly report card Tuesday, Feb. 13, 2018. (AP Photo/Seth Perlman, File)

NEW YORK — PepsiCo reported flat revenue for the last few months of 2017, and said that it will cut some jobs while giving others bonuses of up to $1,000.

The layoffs, which will affect its corporate employees, amounts to less than 1 percent of its more than 110,000 employees, the company said Tuesday.

Bonuses go to those who make PepsiCo's snacks and drinks, and those who deliver them.

Like other major corporations this year, PepsiCo is citing a major overhaul of the nation's tax code for the bonuses. It did not say how many workers would receive them, or what the criteria is for the size of the bonus.

The company will also use its tax savings to bump its annual dividend by 15 percent and increase its share buyback program to $15 billion, from $12 billion.

However, sales slipped across its businesses in North America, including its soda and water unit, Doritos maker Frito-Lay and oatmeal business Quaker. Sales rose in Latin America, Europe and Africa.

The Purchase, New York, company reported a loss of $710 million, or 50 cents per share, in the three months ending Dec. 30, hurt by a $2.5 billion provisional net tax expense related to the tax overhaul.

Stripping out the expense and other items, earnings were $1.31 per share, a penny better than what analysts polled by Zacks Investment Research were calling for.

Revenue rose slightly to $19.53 billion from $19.52 billion, beating the $19.44 billion analysts expected.

The company expects 2018 adjusted earnings of $5.70 per share. Analysts polled by FactSet predict $5.67 per share.

Shares of PepsiCo Inc. edged slightly lower in early Tuesday.

_____

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PEP at https://www.zacks.com/ap/PEP

Must Read

Judge dismisses suit accusing Twitter of...

Aug 10, 2016

A federal judge in San Francisco has dismissed a lawsuit accusing Twitter of supporting the Islamic...

Prince Fielder emotional as he ends career after...

Aug 11, 2016

Prince Fielder says it will be tough not be able to play again after having to walk away from the...

Air Force struggles with fighter pilot shortage...

Aug 10, 2016

Air Force officials say they have a shortage of 700 fighter pilots, even as the U.S. battles in...

Girardi: 'No one individual is ever bigger than...

Aug 11, 2016

Benched from the starting lineup once again as his finale approaches, Alex Rodriguez pinch hit and...

Experts say white supremacists see Trump as 'last...

Aug 11, 2016

Legal and civil rights experts say Republican presidential candidate Donald Trump's campaign is...

Sign up now!

About Us

In The Headline sought to bring professionalism back into journalism, bringing you only the most exclusive and the most impactive news from all over the globe.

Contact us: sales[at]intheheadline.com