Gatorade, snacks give PepsiCo a boost

Snack and beverage giant PepsiCo Inc. reported a 13 percent jump in fourth-quarter profit Wednesday, as strong sales of snacks like Doritos and Ruffles and noncarbonated drinks such as Gatorade offset high fuel costs and continued sluggishness in the North American soda business.

Quarterly profit totaled $1.11 billion, or 65 cents per share, up from $985 million, or 58 cents per share, a year earlier. Revenue jumped 15 percent to $10.1 billion from $8.8 billion, helped by one extra selling week compared with last year.

PepsiCo’s earnings matched analysts’ forecast of 65 cents per share, according to Thomson Financial, while revenue topped the estimate of $9.57 billion.

Life insurance and investment giant Prudential Financial Inc. on Wednesday reported fourth-quarter profit rose nearly 20 percent from a year ago despite a loss in its investment division.

Quarterly financial services profit was $377 million, or 78 cents a share, up 19 percent from $317 million, or 64 cents, for the same period in 2004.

Operating earnings for the three months ended Dec. 31 were $543 million, or $1.06 a share, up 7 percent from $508 million, or 96 cents a share, in the 2004 fourth quarter.

Total quarterly revenue rose 12 percent to $5.8 billion from $5.2 billion a year earlier.

Electronic Data Systems Corp. said fourth-quarter profit doubled even though revenue was virtually flat, as the technology-services company tightened spending.

The company got a boost last week when its largest customer, General Motors Corp., rehired EDS to handle much of its technology work although other technology firms made inroads. Still, the company’s full-year profit and revenue fell from 2004.

EDS said it earned $112 million or 21 cents per share in the last three months of the year, compared to $53 million or 10 cents per share a year earlier.

Napster Inc. on Wednesday said it fell to a loss in its fiscal third quarter as the company increased spending on marketing its online music service.

The company posted a deficit of $17 million, or 40 cents per share for the three months ended Dec. 31, compared with income of $12.8 million, or 36 cents, the year before. Analysts surveyed by Thomson Financial were looking for a loss of 61 cents per share.

Revenue for the period totaled $23.5 million, nearly twice the $12.1 million from a year earlier and in line with analysts’ consensus target.