Flood closes PepsiCo plant, assessment ongoing

PURCHASE, N.Y. (AP) _ PepsiCo Inc. on Thursday said flooding closed its Quaker manufacturing plant in Cedar Rapids, Iowa, but the beverage and snack maker reaffirmed its full-year guidance.

Flooding deluged much of Iowa last week.

The Purchase, N.Y.-based company said the plant was closed on Wednesday and the situation assessment is ongoing. The company expects disruptions to normal service over the next few weeks, including product allocation to retailers of some Quaker food and snack items. PepsiCo said insurance is covering plant and business interruption.

Grain plantings were also hurt by the flooding in Iowa, but PepsiCo said it is largely covered on key commodities through 2008 and its coverage on corn extends into 2009.

PepsiCo, which makes soft drinks, Tropicana juices, Frito-Lay snacks and other products, reaffirmed 2008 earnings guidance of at least $3.72. Analysts polled by Thomson Financial expect a profit of $3.73 per share.