PepsiCo income up;Â beverage business lags
Purchase-based PepsiCo Inc., the world”™s largest snack-food maker and the second-largest soft-drink maker, reported on July 21 that its second-quarter net income rose 18 percent to $1.89 billion, from $1.6 billion a year earlier. The profit gain was helped by growth in its Frito-Lay snacks business, strength in emerging markets and recent acquisitions. But its beverage business lagged, with volume down 1 percent. Revenues rose 14 percent to $16.8 billion.
CEO Indra Nooyi offered a bleak assessment of the U.S. consumer spending. “The modest pickup in total consumer spending almost all U.S. businesses saw earlier in the year has reversed in the past several months. And the general consumer weakness is driving reduced traffic in key retail channels,” Nooyi said.
The company is raising some prices to offset rising commodity prices.
In other PepsiCo news, the company on July 20 named Alberto Weisser, CEO of White Plains-based agribusiness giant Bunge Ltd., to its board of directors.
IBM reports robust sales
Amonk-based IBM Corp. reported strong quarterly results in July. The computer-services company reported on July 18 that its second-quarter net income rose 8 percent to $3.7 billion, from $3.39 billion a year earlier. Big Blue, which celebrated its centennial anniversary in June, saw strong sales of new mainframe models. Its software and services segments also posted healthy growth.
Second-quarter revenue rose 12 percent to $26.7 billion. Contrary to weak U.S. consumer spending, private corporate spending was strong in the second quarter, as seen by robust sales figures from IBM.
Strong results for KeyCorp
KeyCorp, the Cleveland-based parent company of KeyBank, reported on July 19 that its second-quarter net income from continuing operations rose to $243 million, up from $56 million a year earlier. The strong results were helped by lower loan losses and expenses, and improving asset quality. Nonperforming loans were reduced by more than half to $842 million and nonperforming assets declined $1.1 billion to $950 million.
“Our results reflected continued improvement in credit quality, disciplined expense management and continued execution of our business plan,” said CEO Beth Mooney, who took the helm in May.
KeyCorp has 59 KeyBank branches in the Hudson Valley/metro New York district.
Signature”™s net income rises
Signature Bank, the New York metropolitan bank with 24 private client branches including two in Westchester, reported on July 26 that its second-quarter net income rose to $36.6 million, up from $22.3 million a year earlier.
The results were helped by an increase in net interest income, fueled by core deposit growth and strong loan growth. These factors were partially offset by increases in the provision for loan losses and non-interest expenses. Net interest income was $113 million, up 39 percent from one year ago. Deposits rose 6.7 percent to $10.87 billion.
Westchester Bank raises $27M
The Westchester Bank is celebrating its third anniversary with financial gains and a recent completion of a private placement stock offering that raised $27 million in new capital.
At the end of the second quarter, the Yonkers-based bank”™s deposits were more than $196 million, up 29 percent from one year ago, while assets totaled more than $240 million, up 30 percent. Total loans outstanding exceed $140 million, up 59 percent.
Profit dips at community bank
New York Community Bancorp, the holding company for New York Community Bank and New York Commercial Bank, reported on July 22 that its second-quarter profit was $119.5 million, down slightly from $131.4 million a year earlier. The Westbury-based company has seven banking locations in Westchester.
The company was adversely affected by a still-soft mortgage market. “Earnings growth was inhibited by a continued decline in mortgage banking income, as weakness in the U.S. housing market continued,” said CEO Joseph Ficalora.
On a positive note, the company said it saw improvements in asset quality measures, multifamily loan growth reflecting higher-volume originations, a notably stable margin and significant capital strength. The company assets totaled $40.6 billion.
Provident”™s numbers fall
Provident New York Bancorp, the Montebello-based parent company of Provident Bank which has three commercial banking centers in Westchester, reported on July 25 that its quarterly net income fell to $1.9 million, from $4.8 million a year earlier.
Net interest income for the quarter was $22.8 million, down from $24.2 million one year ago. Total non-interest income declined to $5.22 million from $5.28 million. The company said results were impacted by $1.5 million in additional loan loss provisions.
CEO Jack Kopnisky, who took over the top job on July 6, said there were several positive indicators that should support improved performance. “Commercial loan originations were $125.5 million, up $38 million over the linked quarter. The commercial loan pipeline is up 48 percent over the linked quarter and up 59 percent over the same quarter of the previous year,” Kopnisky said.
Net income down at Hudson
Hudson City Bancorp, a Paramus, N.J.-based holding company for Hudson City Savings Bank which has six locations in Westchester, reported on July 20 that its second-quarter net income fell 33 percent to $96 million, from $142.6 million a year earlier. The company reported lower net interest income. Total assets decreased $9.39 billion, or 15.4 percent, to $51.78 billion at June 30.
CEO Ronald Hermance said that with the economy recovering at a very slow pace, the balance sheet and future earnings growth continue to face headwinds. “The continued low interest rate environment does not allow for profitable growth and, while our credit metrics are stable, the housing markets and employment outlook are weak,” Hermance said.
Drew acquires M-Tec for $6M
Drew Industries, the White Plains-based supplier of windows and other components for recreational vehicles and manufactured homes, said on July 20 that it paid $6 million for the assets of M-Tec Corp., an Indiana-based company that makes parts for RVs and mobile office units. The acquired business has annual sales of about $12 million.
MasterCard invests $1 in education
MasterCard Worldwide, based in Purchase, announced on July 20 a $1 million grant to the Network for Teaching Entrepreneurship to support entrepreneurship education programs for middle and high school students in low-income communities.
