Figures and results


Below are a few interesting numbers and bits of information



Profits rose 29 percent in 2008



The transnational corporation closed 2008 with a net profit of 5.03 billion euros (6.4 million dollars), up 29 percent from 2007 in current exchange terms, despite the drop in sales attributed to the economic recession in the fourth quarter of the year.


The company reported a pre-tax profit of 7.13 billion euros (9.1 billion dollars), representing a 38 percent rise as compared to the previous year. Revenue increased by one percent to 40.52 billion euros (51.71 billion dollars).


The products that brought in the greatest income for the company were home care products, and the ones that generated the least income were ice creams and soft drinks.



Earnings up 21 percent


In the last fiscal year (2008), the French food giant registered a net profit of 1.16 billion euros (1.48 billion dollars), an increase of 21 percent with respect to the previous year. Sales volume reached 15.22 billion euros (19.41 billion dollars), up 8.4 percent.


Despite these positive results, spokespersons of the transnational corporation say that the drop in demand will probably prevent the company from attaining its target of 8 to 10 percent increase in 2009.





Earned 9 percent less in 2008, announces layoffs, and makes Calderón happy


Pepsico had a net profit of 5.14 billion dollars in 2008, representing a 9.1 percent drop as compared to the previous year. Revenue reached a total of 43.25 billion dollars, up 9.5 percent, following a 10.8 percent increase in sales of the Pepsico American Food division, while Pepsico American Beverages brought in 1.4 percent less revenue, and Pepsico International saw a 19.3 percent rise in sales.


In the last quarter of 2008, restructuring costs and asset write-downs brought the company’s net profits down by 43 percent, to 719 million dollars, while sales grew by 3.1 percent, to 12.73 billion dollars.


These results prompted Pepsico to announce in late October 2008 that it would cut 3,300 jobs under a productivity improvement plan. Company sources say that with this plan it expects to save up to 1.2 billion over the next three years. Forty percent of the projected layoffs will result from the closure of six plants and other measures aimed at rationalizing production.


Pepsi announced last December that it was closing three plants and 30 distribution centers in Mexico, in addition to eliminating 700 routes in that country, all of which translates into 2,200 workers out of a job. In February, during the Davos meeting, PepsiCo Executive Director Inda Nooyi met with Mexican President Felipe Calderón and informed him of plans to open a new plant in Celaya (Guanajuato), with an initial investment of 100 million dollars. According to official sources, Calderón celebrated the undertaking and declared that it was further proof that Mexicowas on the right track as a destination for investments.” Of the 2,200 laid off workers, not a word. Apparently that’s only a minor detail..



More than 25 thousand workers in Brazil’s poultry industry forced to take leave


Due to the adjustment of stocks, more than 25 thousand people in Brazil’s poultry industry were forced to go on vacation. As of late last year, the industry’s companies, both large and small, ordered their workers to take forced leave, with the aim of adjusting their offer to current global demand. With this measure, they are acting on the recommendation of the Brazilian Association of Chicken Exporters (Abef) to cut production by 20 percent. In Perdigão alone, almost 9,000 workers from five different units were sent on forced vacation, and more workers are expected to follow.



Earnings down by 3 percent in 2008


Last year, The Coca-Cola Company had a net profit of 5.81 billion dollars, representing a 3 percent drop with respect to 2007. The company says its results were hurt by restructuring costs and asset write-downs.


Sales figures reached 31.94 billion dollars, up 11 percent from last year. The increase in sales was registered across all the regions the company operates in, with growth ranging from 6 percent, in North America, to 18 percent in Latin America.


In the fourth quarter of 2008, Coca-Cola suffered an 18 percent decline in profit, earning a total of 995 million dollars, while revenue fell 3 percent to 7.13 billion dollars, dragged down by the 12 percent drop in Eurasia and Africa, and the 3 percent drop in Europe.


Coca-Cola says it has implemented a number of measures that will run to 2011 and will result in annualized savings of 500 million dollars. No more details were provided by the company’s spokespersons, but in view of current corporate trends it wouldn’t be surprising if such measures include job cuts.


Another interesting fact is that the consultancy firm Interbrand placed the Coca-Cola brand first in its Best Global Brand ranking, valuing it at 66.67 billion dollars. Coca-Cola products are consumed in more than 200 countries around the world, with over 1.5 billion units sold daily.



From Montevideo, Enildo Iglesias


February 18, 2009

Enildo Iglesias





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