NEW YORK (AP) — PepsiCo Inc.'s third-quarter net income rose 12 percent on strong sales gains abroad and strength in its drinks and Frito-Lay snacks.

The company lowered the top end of its guidance for the fiscal year because of investments to expand its presence in growing countries like China. It also expects to be hurt by changes in currency exchange rates.

Shares fell $2.09, or 3.1 percent, to $66.02 in morning trading yesterday.

Pepsi said it earned $1.92 billion, or $1.19 per share, in the three months ending September 4. That compares with earnings of $1.72 billion, or $1.09 per share, in the same period last year.

Without one-time items including charges to integrate its bottlers, the company earned $1.22 per share, in line with analyst estimates, according to Thomson Reuters.

Revenue rose 40 percent to $15.51 billion on strong gains abroad and the acquisition of the company's largest North American bottlers earlier this year. Revenue beat analyst estimates of $15.38 billion. The company completed its bottler deal for $7.8 billion earlier this year, with the goal of better controlling distribution and bring products to market more quickly. Shoppers have been pushing away from soft drinks because of health concerns and turning to juices and teas. They've also limited their purchases because of the economic downturn, so controlling the bottlers helps Pepsi keep up with these changing tastes.

The company, based in Purchase, New York, reported revenue gains across all of its business units, including beverages around the world and snacks, except for Quaker, which has been struggling in the US.

It plans to continue expanding its snacks and soft drinks overseas by increasing investment in production and distribution.