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PepsiAmericas makes sells and delivers a broad portfolio of Pepsi-Cola core brands Cadbury beverages and other national and regional brands in the U.S. as well as Puerto Rico Jamaica the Bahamas Trinidad and Tobago Poland Hungary the Czech Republic and the Republic of Slovakia. PepsiAmericas Inc. has a market cap of $3.52 billion; its shares were traded at around $28.25 with a P/E ratio of 14.3 and P/S ratio of 0.8. The dividend yield of PepsiAmericas Inc. stocks is 1.9%. PepsiAmericas Inc. had an annual average earning growth of 5.9% over the past 10 years. GuruFocus rated PepsiAmericas Inc. the business predictability rank of 2.5-star. Highlight of Business Operations: Net income attributable to PepsiAmericas, Inc. in the second quarter of 2009 was $61.4 million, or $0.50 per diluted common share, compared to $90.8 million, or $0.72 per diluted common share, in the second quarter of 2008. Net income in the first half of 2009 was $83.1 million, or $0.67 per diluted common share, compare to net income of $115.5 million or $0.90 per diluted common share, in the first half of 2008. The decrease in diluted earnings per share in the second quarter and first half of 2009 resulted primarily from the $0.19 per diluted common share loss recognized from the deconsolidation of our Caribbean business, partly offset by higher net sales in the U.S. and disciplined cost management across all markets. The impact of foreign currency movements reduced earnings per diluted common share by $0.28 in the second quarter of 2009 and $0.40 in the first half of 2009.
In the second quarter and first half of 2009, we recorded special charges of $8.1 million and $8.3 million, respectively. In the second quarter and first half of 2009, we recorded $6.9 million of special charges in CEE related to the restructuring of our Hungary operations, primarily for severance and fixed asset impairments. We anticipate recording $2.7 million of additional special charges related to our Hungary operations during the remainder of the year. In the second quarter and first half of 2009, we recorded $1.3 million and $1.5 million, respectively, of special charges in the Caribbean related to restructuring and severance costs.
In the second quarter of 2009, we recorded $7.5 million of unrealized gains on derivatives in the U.S. related to commodity contracts; $5.0 million was recorded in cost of goods sold and $2.5 million was recorded in selling, delivery and administrative (“SD&A”) expenses. In the first half of 2009, we recorded $1.9 million of unrealized gains on derivatives in the U.S. related to commodity contracts; $1.0 million was recorded in cost of goods sold and $0.9 million was recorded in SD&A expenses. In the first half of 2008, we recorded $0.1 million of unrealized gains in cost of goods sold in the U.S. related to commodity contracts.
In the U.S., cost of goods sold increased $18.1 million, or 3.4 percent, to $551.4 million in the second quarter of 2009 from $533.3 million in the prior year second quarter. The increase was driven by a cost of goods sold per unit increase of 4.1 percent, due primarily to higher raw material costs, offset in part by unrealized gains on derivatives that decreased cost of goods sold by 0.9 percentage points.
In CEE, cost of goods sold decreased $60.1 million, or 28.3 percent, to $152.3 million in the second quarter of 2009 compared to $212.4 million in the prior year second quarter. Foreign currency contributed 16.8 percentage points to the decrease in cost of goods sold, with the remaining decrease primarily attributed to a decline in volume. Cost of goods sold per unit increased 1.4 percent on a currency-neutral basis in the second quarter of 2009 compared to second quarter of 2008, due to higher raw material costs.
In the Caribbean, cost of goods sold decreased $9.6 million, or 19.9 percent, to $38.7 million in the second quarter of 2009 compared to $48.3 million in the second quarter of 2008. The decrease was mainly driven by a decline in volume, offset by a cost of goods sold per unit increase of 8.3 percent on a currency-neutral basis which was attributable to increases in raw material costs.
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