Earnings and revenue fell at Purchase-based PepsiCo in the second quarter. Operating profit was down 14 percent, because of commodity inflation, increased pension expense, losses on commodity hedges and restructuring charges. In emerging markets, revenue was down 8 percent, because of beverage refranchisings in China and Mexico. In China, PepsiCo completed its beverage alliance with Tingyi, one of China”™s major food and beverage companies. Revenue rose at PepsiCo Americas Foods, by 7 percent, because of higher prices at Frito-Lay North America, Latin America Foods, and Quaker Foods North America. Revenue fell 5 percent at PepsiCo Americas Beverages, mainly because of the refranchising of the Mexican beverage business in the fourth quarter of 2011. PepsiCo”™s media spending was up 40 percent in the quarter, and it launched its first-ever global campaign for Pepsi ”“ Live for Now.
Regeneron posts profit
Regeneron reported a profit for the second quarter, earning $77 million, or 70 cents a share, after losing $63 million, or 69 cents a share, in the second quarter of 2011. Revenue rose to $304 million in the quarter from $108 million in last year”™s quarter. Product sales were $200 million in the quarter compared with $5 million in the second quarter of 2011. Sales of EYLEA, used to treat macular degeneration, were up 57 percent in the second quarter from the first quarter to $194 million. The company raised its sales forccast for EYLEA for the full year 2012 from $500 million to $550 million to $700 million to $750 million. Regeneron said it expects to be profitable for the full year and awaits the launch of EYLEA overseas in the second half. It also awaits an FDA decision in September on its application to market the drug in the U.S. to treat a related eye disease.
Provident earnings up
Provident New York Bancorp, which has branches in the Hudson Valley, reported earnings for its June quarter rose to $6.2 million, or 17 cents a share, from $1.9 million, or 5 cents, a year earlier.
The bank”™s lending picture brightened. Loan growth boosted earnings ”“ loan originations rose to $206 million from $166 million in the March quarter. Nonperforming loans were down $7.5 million to $44.5 million from $52 million. The bank”™s provision for loan losses fell to $2.3 million from $3.6 million in the same quarter of last year.
Interest income and noninterest income rose. In the case of noninterest income, the reason for the rise was higher gains on sales of securities of $1.9 million and higher gains on sales of loans of $569,000.
Noninterest expense was down from the same quarter of last year, mainly because there were charges in the year-ago quarter related to the change in the bank”™s CEO. This year”™s quarter included $451,000 in merger related expenses.
Foreclosed properties were up 25 percent from March 31 to $7.3 million.
Universal American up
Universal American, which provides health benefits and services to people covered by Medicare or Medicaid, returned to profitability in the second quarter compared with the same period last year. The company earned $4.7 million, or 5 cents a share, after a loss of $5.1 million, or 6 cents a share, a year earlier. For the six months ending June 30, earnings were $25.4 million, or 30 cents a share. Universal lost almost $37 million, or 46 cents, in the first half of 2011. Operating income in its Medicare Advantage program was half what it was a year ago, falling from $20 million to $10 million, because of lower membership and a higher Member Benefit Ratio, meaning more money was
