Page 25 - ARUBA TODAY

BUSINESS Thursday 5 OcTOber 2017
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In push to get healthy, Pepsi may have pushed too hard in 3Q

PURCHASE, N.Y. (AP) — A much shelf space to its enue from beverages in sire for bold flavors” on Revenue rose 1 percent to
shift by PepsiCo from sodas newer, low-calorie drinks North America, PepsiCo’s which PepsiCo has been $16.24 billion, short of the
to more healthy and low- and spent too much mar- biggest market, fell 3 per- able to capitalize, Nooyi the $16.41 billion analysts
calorie drinks crimped sales keting them. cent. said.The company report- had projected.
in the third quarter, even The transformation at Pep- “Our performance did lag ed net income of $2.14 bil- The Purchase, New York,
with strong snack sales siCo will continue, but the the industry,” said Nooyi. lion, or $1.49 per share, in company said it now ex-
pushing profits up 8 percent company plans to return “No question about it.” the 12 weeks ending Sept. pects its earnings for the
compared with last year. more of its focus to the Snacks offset some of those 9. That compares with full year to be $5.23 per
PepsiCo has attempted brands that drive sales, in- declining sales on the drink $1.99 billion, or $1.37 per share, up from its previous
to walk in step with Ameri- cluding Pepsi and Moun- side, however. share, in the same quarter forecast of $5.13 per share.
can tastes, which poten- tain Dew, and it will pro- The North America Frito- a year ago. Adjusted earn- Wall Street has projected
tially means less Pepsi and mote them accordingly. Lay business rose 3 percent ings were $1.48 per share, full-year per-share earnings
Mountain Dew. Nooyi also blamed the thanks to higher demand beating the $1.42 per share of $5.16.Shares of PepsiCo
CEO Indra Nooyi acknowl- sales slump on cooler sum- for its jalapeno-flavored that analysts expected, Inc. fell $1.44, or 1.3 per-
edged Wednesday that mer weather, which hurt Cheetos and Ruffles chips. according to Zacks Invest- cent, to $107.69 shortly in
the company gave too Gatorade the most. Rev- There is an “increasing de- ment Research. early trading.q

Wavering stocks inch a bit further into record heights

By STAN CHOE ply Management followed
AP Business Writer one on Monday that
NEW YORK (AP) — U.S. showed U.S. manufactur-
stocks inched a bit fur- ing is also growing strongly.
ther into record territory “Things continue to be very
Wednesday after teeter- solid, and the economic
tottering through the day. numbers continue to be
The Standard & Poor’s 500 very strong not only here
index rose by just a sliver, but throughout the world,
but it was enough for a which is what’s driving this,”
seventh straight gain. said Kirk Hartman, global
The S&P 500 climbed 3.16 chief investment officer for
points, or 0.1 percent, to Wells Fargo Asset Manage-
2,537.74 after flipping be- ment.Mylan surged to the
tween slight losses and biggest gain in the S&P 500
gains through the day. after federal regulators ap-
The seven-day win streak is proved its generic version
the index’s longest since a of Teva’s Copaxone drug
similar run in May.The Dow for multiple sclerosis. Mylan
Jones industrial average jumped $5.27, or 16.2 per-
rose 19.97 points, or 0.1 per- cent, to $37.80.
cent, to 22,661.64, and the Utility stocks were also
Nasdaq composite picked strong, and such stocks
up 2.91, or less than 0.1 per- in the S&P 500 jumped
cent, to 6,534.63. All three Trader Frank O’Connell works on the floor of the New York Stock Exchange. U.S. stocks inched a 1.1 percent.On the losing
bit further into record territory Wednesday after teeter-tottering through the day.
indexes added to records (AP Photo/Richard Drew) end was Office Depot,
set a day earlier. which plunged after it an-
A report from payroll pro- job market. But econo- government will release its more encouraging picture. nounced a $1 billion pur-
cessor ADP said that hiring mists and investors were more comprehensive jobs One showed that the na- chase of an IT services and
by private employers weak- expecting a low number report on Friday, and econ- tion’s services companies products provider, while
ened sharply last month, a because of the damage omists are also forecasting expanded last month at cutting its forecast for op-
setback for an economy done by hurricanes Harvey a weaker number than a their fastest rate in more erating profit this year. Its
that had been enjoying and Irma, which hopefully month earlier. than a decade. The report stock fell 81 cents, or 17.6
a generally strengthening will be only temporary.The Other reports painted a from the Institute for Sup- percent, to $3.78. q

Survey: US services sector improved at best pace in 12 years

By JOSH BOAK reading above 50 signals ricanes Harvey and Irma alized economic growth of more than 70 percent of
AP Economics Writer growth. The services sec- disrupted many businesses 4.2 percent, roughly double American jobs — making
WASHINGTON (AP) — U.S. tor has expanded for 93 without derailing overall the pace of the average this a valuable sign that
services companies in Sep- straight months. growth.“Very strong re- gains in the recovery. Many the government’s jobs re-
tember expanded at the The gains point to a po- port, very surprising it came economists — including of- port out Friday will show
strongest rate in dozen tentially faster economic in at such as high level,” ficials with the Federal Re- that hiring was positive in
years as a measure for new growth — which could help said Anthony Nieves, chair serve — expect growth to September.Fifteen services
orders climbed sharply. to spur more hiring and of the ISM’s non-manu- stay near to that 2 percent industries reported growth,
The Institute for Supply Man- stronger pay raises. The facturing business survey level in the coming years. including retail, real estate,
agement said Wednesday U.S. economy has gone committee. “Business con- New orders and busi- health care and social as-
that its services index rose through a steady but slow ditions look good, even ness activity both rose last sistance and lodging and
last month to 59.8 from 55.3 recovery from the Great with the recent weath- month, while a measure food services. But two sec-
in August. The September Recession that entered its er-related catastrophic for employment improved tors contracted last month:
reading was the highest ninth year this summer. The events.”September’s read- slightly. Private service- mining and entertainment.
since August 2005. Any index suggests that Hur- ing corresponds with annu- sector workers account for q