American consumers shying away from bottled water and soft drinks hurt PepsiCo's bottom line, but growth in its international and Frito-Lay snack businesses was strong enough to lead the company to a 9 percent rise in second-quarter profit.

PepsiCo, which sells brands such as Mountain Dew, Aquafina, Lay's and Quaker, has also raised prices worldwide to offset higher costs for fuel and ingredients such as grains and cooking oil.

"We're really pleased with our performance in a difficult market," Chief Financial Officer Richard Goodman said in an interview. PepsiCo expects commodity costs to rise between 9 percent and 10 percent in 2008.

PepsiCo's strong international growth was further boosted by the weak dollar.

For the three-month period ending June 14, the Purchase, N.Y.-based company earned $1.7 billion, or $1.05 a share, compared with $1.56 billion, or 94 cents a share, during the same period last year. Revenue rose 14 percent to $10.95 billion.

Excluding one-time items, the company earned $1.03 per share. Analysts surveyed by Thomson Financial had expected earnings of $1.02 per share on revenue of $10.55 billion.

PepsiCo reaffirmed its full-year profit estimate of at least $3.72 per share, excluding accounting-related items.

Its shares rose $1.53, or 2.3 percent, to $67.72 in trading Wednesday.

Chief Executive Indra Nooyi told investors on a conference call that the company was working on a "meaningful" cost-cutting program to save on manufacturing, logistics and delivery, and would give details at the end of the third quarter or early in the fourth quarter.

At PepsiCo International, which includes snacks and beverages outside of North and Latin America, revenue rose 25 percent. Snacks volume gained 10 percent and drinks volume rose 13 percent.

The Americas snacks business reported a 16 percent rise in revenue as volume rose 2 percent, helped by price increases and double-digit volume gains in Cheetos, Ruffles, Quaker Chewy Granola and SunChips.

"We feel very good that the strength of our brands has been able to still keep consumers with us," Goodman said about Frito-Lay, which had a 2 percent rise in volume even as the company raised prices.

Starting in the second quarter, Frito-Lay reduced the weight of some products, effectively raising prices without changing the cost that buyers see. It also raised some actual prices, so that overall prices were effectively higher by a mid-single digit rate over last year.

Weak sales of carbonated soft drinks hurt the company's Americas beverages unit, which posted 1 percent revenue growth as volume fell by 1 percent.

Goldman Sachs analyst Judy Hong said those results were "especially disappointing."

"We are concerned continued consumer and cost pressures will remain a drag across 2008 and 2009," she wrote to investors.

Nooyi said U.S. soft drinks sales were in an "unprecedented slowdown" that has also hit the company's Aquafina bottled water, as consumers who want to save money and reduce waste switched to tap water. She said she was optimistic that U.S. soft drink sales would eventually return to growth of 1 percent to 2 percent.

To deal with falling U.S. demand, a bottler for Coca-Cola Co., which is PepsiCo's bigger rival in the North American drinks market, said last week that it would raise prices this fall. That prompted some analysts to predict that Coca-Cola and PepsiCo would increase the prices they charge for concentrate.

"No decisions have been made," Goodman said about a potential raise in concentrate prices. He added that the company normally makes those decisions near the end of the year.

Favorable exchange rates contributed 4 percentage points of growth to the company's overall revenue and 3 points to operating profit.

The company also said it would buy back an additional $1 billion in shares this year, increasing its total share repurchase plan to $5.3 billion for 2008. PepsiCo had spent $2.9 billion on buybacks by the end of the quarter.