Page 24 - ARUBA TODAY

Wednesday 12 July 2017 BUSINESS
A24

Pricier Frito-Lay snacks help PepsiCo’s sales revenue

NEW YORK (AP) — Pep- as well as more “premium” For PepsiCo, the push has 1 percent. tions by 11 cents, accord-
siCo said pricier snacks products like Lay’s Poppa- included the introduction The Purchase, New York- ing to a survey by Zacks In-
and drinks boosted its sales bles, which are puffed up of a pricier bottled water based company noted vestment Research.
in North America during pieces of potato. that is intended to com- challenging economic Total revenue rose 2 per-
the second quarter, even PepsiCo, like other major pete with Coca-Cola’s conditions in many over- cent to $15.71 billion, also
though the amount of packaged food makers, Smartwater. The compa- seas regions where it does edging out analyst expec-
products it sold in the re- is working on cutting costs ny said Tuesday that the business, including in Latin tations.
gion didn’t change from a and transforming its prod- drink, Lifewtr, is perform- America.For the quarter PepsiCo expects earnings
year ago. uct lineup to reflect shift- ing well. But volume in the ended June 17, PepsiCo of $5.13 per share for the
Sales in the Frito-Lay snacks ing tastes. In the saturated company’s North America Inc.’s profit rose 5 percent year, a penny shy of Wall
division rose 3.5 percent in North American market, it’s beverages unit, which also to $2.11 billion, or $1.46 Street expectations, ac-
North America, with Pep- also trying to push up rev- includes Diet Pepsi, Gato- per share. Earnings exclud- cording to FactSet.
siCo Chief Financial Officer enue with pricier products rade and Aquafina, was ing non-recurring costs Shares of PepsiCo Inc. fell
Hugh Johnston attributing since increasing sales vol- flat as a result of declines in were $1.50 per share. That 97 cents to $113.30 in morn-
the increase to price hikes ume can be difficult. other brands. Revenue rose topped Wall Street projec- ing trading.q
Tesla adding service centers as Model 3 goes on sale

By DEE-ANN DURBIN vans
AP Auto Writer At a starting price of
DETROIT (AP) — Electric car $35,000, the Model 3 is
maker Tesla is expanding its about half the cost of Tes-
service operations and hir- la’s two other models. Tesla
ing more than 1,000 tech- hasn’t said how many peo-
nicians to meet expected ple hold refundable, $1,000
demand for its new Model reservations for the car. It
3 sedan. has said it expects to make
The Model 3, cheaper than 500,000 vehicles in 2018, up
Tesla’s existing cars, goes from 84,000 last year.
on sale this month and is Like its stores, which are
expected to attract hun- owned by the company
dreds of thousands of new and not by franchised
customers to the brand. dealers, Tesla’s service
To accommodate them, model is unusual. Tesla
the company is adding 100 CEO Elon Musk said several
new service centers world- years ago that unlike tra-
wide over the next year, ditional dealerships, Tesla
bringing its total number of didn’t intend to make a
service centers to 250. The profit on service and re-
new service centers will be pairs, partly because elec-
in areas that have the most This shows the Tesla Model 3 sedan. Electric automaker Tesla has produced its first Model 3 sedan, tric cars don’t need regu-
reservation-holders for the a highly anticipated car because it carries a relatively low sticker price. On Saturday, July 8, 2017, lar oil changes or other
Model 3. CEO Elon Musk tweeted pictures of the car, which will cost $35,000 and can travel 215 miles on maintenance that gaso-
a single electric charge. A $7,500 federal tax credit for electric vehicles would lower the cost to
Tesla also is adding 350 $27,500. line-powered cars do. U.S.
vans to its mobile service (Courtesy of Tesla Motors via AP) dealers made $110 billion
fleet, mostly in the U.S. in service and parts sales
The vans go to owners’ last year, according to
homes or offices and re- around 30 mobile repair in the San Francisco area arrangement, so the com- the National Automobile
pair their cars. The vans are vans, which were used in order to ease the bur- pany decided to roll out Dealers Association. Tesla
equipped with tools and mostly in cases where the den on its service centers mobile service in more lo- said it’s charging the same
replacement parts as well owner lived too far from a and see if they could help cations. Tesla is hiring 1,400 amount for non-warranty
as an espresso machine, service center. About six meet anticipated demand new service technicians repairs whether they’re
snacks and kids’ toys. months ago, the company for the Model 3. Customers this year to staff the service done at service centers or
Until now, Tesla had began deploying the vans were happy with the new centers and mobile repair through mobile vans. q
US job openings slipped in May, but hiring increased

By JOSH BOAK ter advertised job postings reflects the normal churn fewer unemployed workers But even then, Kolko said
AP Economics Writers nearly reached 6 million in of people who are tempo- for each job opening. that the level of churn re-
WASHINGTON (AP) — U.S. April, a figure that has been rarily out of work. Typically, Workers have certainly be- flected by people getting
employers posted fewer revised downward from the when unemployment falls come more confident in hired or leaving their jobs
job openings in May. But initial report. Meanwhile, that low, companies are the past year that they can has been lower than it was
hiring picked up and more hiring climbed 8.5 per cent forced to offer more pay, find jobs. in the early 2000s, which is
people are quitting their to just under 5.5 million. but that hasn’t yet hap- The number of people quit- consistent with the relative-
jobs — both positive signs The data is a sign the pened. ting their jobs has increased ly slow wage gains.
for the economy. economy at 4.4 percent Jed Kolko, an economist at 7.1 percent to 3.2 million. May job openings fell by a
Job openings fell 5 percent unemployment is nearing the jobs site Indeed, said People usually quit when meaningful amount in con-
in May to 5.7 million, the La- “full employment,” when the report “shows what they either find a new job, struction and transporta-
bor Department said Tues- nearly all those who want workers do in a tight labor often at higher pay, or are tion, warehousing and utili-
day. a job have one and the market” in which there are confident they can soon ties. q
The setback occurred af- unemployment rate mostly more quits than layoffs and be hired elsewhere.