PepsiCo (PEP) reported a worse-than-expected decline in second-quarter sales and lower earnings on Wednesday and stood by its fiscal 2012 guidance.

Hurt by a strong dollar, lingering effects of refranchising PepsiCo’s Mexican beverage business in 2011 and pricing impacts, reported sales in its beverage business fell across the company’s geographic regions.

In the Americas and Europe, sales for Pepsi beverages were off 5%. In Asia, the Middle East and Africa reported sales declined by 9%, partially due to refranchising of its bottling operations in China. Excluding those bottling costs, organic sales actually climbed 5%.

Net revenue for the three months ended June 16 was $16.46 billion, down 2% from $16.8 billion a year ago, narrowly missing the Street’s view of $16.5 billion.

The Purchase, N.Y.-based maker of Frito-Lay potato chips, Doritos, Tropicana juice and Gatorade posted net income of $1.5 billion, or 94 cents a share, down 21% from $1.88 billion, or $1.17 a share.

Excluding one-time items, PepsiCo earned $1.12 a share, topping average analyst estimates in a Thomson Reuters poll by three cents. 

PepsiCo's snacks business fared well in the second quarter, with Frito-Lay North America and the PepsiCo Americas Foods business both reporting sales growth of 4%. The food categories benefited from higher prices and increased advertising.  

PepsiCo, which is undergoing a multi-year restructuring, incurred $77 million in one-time overhaul charges in the latest period. The company expects to at least record another $315 million in charges during the remainder of 2012, as well as $102 million from 2013 through 2015.

The food and beverage giant continues to expect 2012 earnings to fall by about 5% from $4.40 last year, hurt by weak foreign exchange rates. The consensus is calling for earnings of $4.09. Pepsi sees revenue growing in the low-single-digits.

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