PepsiCo Lowers Profit Forecast as Commodity Costs Increase

PepsiCo Inc., the world’s largest snack-food maker, said profit this year will increase more slowly than it previously projected because of rising commodity costs and slowing consumer demand.

Earnings per share will grow 5 percent to 7 percent in 2011, excluding a benefit from translating overseas profit into dollars, Chief Financial Officer Hugh Johnston said today on a conference call. Purchase, New York-based PepsiCo said in April that profit would rise 7 percent to 8 percent on that basis.