The maker of Pepsi-Cola, Frito-Lay snacks and Quaker Oatmeal said net income rose to $1.7 billion, or $1.05 per share, in the second quarter that ended June 14, from $1.56 billion, or 94 cents per share, a year earlier.

Excluding gains on commodity positions included in corporate unallocated expenses, earnings in the latest quarter were $1.03 per share.

Net revenue rose 14% to $10.95 billion.

Company-wide sales by volume rose 5%, despite a 1% decline in the Americas beverage business.

Volume rose 2% in the Americas foods business, 10% in the international snacks business and 13% in the international drinks business.

Since PepsiCo makes a wide range of products and does business in many countries, it has had an easier time offsetting the industry-wide pressures of soaring commodity costs and a US economic slowdown.

The company, based in the New York City suburb of Purchase, said revenue and profit benefited from foreign exchange rates.

The weakness of the US dollar against many other currencies increases the value of overseas sales when they are converted to dollars for inclusion in companies’ income statements.

PepsiCo also affirmed its 2008 sales volume and earnings outlook, saying it still expects volume to rise 3% to 5% and earnings per share of at least $3.72.

The company raised its revenue outlook, citing acquisitions and foreign exchange rates. PepsiCo said it now expects net revenue growth at a low double-digit percentage rate. In April it forecast revenue growth at a high single-digit rate. (Reuters)