PepsiCo announced on Thursday that while third-quarter net profits fell by 37 percent due to taxes, earnings were up by a higher-than-expected 17 percent when one-time charges were excluded.

This led the beverages and snack foods company to raise its outlook on full-year earnings. The growth was driven by strong international sales and domestic demand that was increased by an exceptionally hot summer in the US. Growing especially were PepsiCo’s no carbonated brands, such as Aquafina bottled water and Gatorade sports drinks.

International sales were up 17 percent, with strongest growth in India, Turkey, Russia, China, Argentina, and the Middle East. The company’s biggest international markets, Mexico and the UK, were up from the previous quarter but sales there were still slow. Beverage volumes were up globally by 10 percent, while snack food volumes grew by 4.5 percent.

In North America, total beverage volume grew by 8 percent, a record, with slow carbonated drink sales compensated for by 24 percent growth in non-carbonated brands. Total revenues were up 13 percent to $8.18 billion, compared to $7.26 billion last year at the same time.

General Motors has announced that it will continue its development of hybrid vehicles even though at this point the company will lose money on the project. The company said that it will pursue hybrid technology in order to boost its credentials as an environmentally-conscious firm.

The chairman and chief executive of GM said that the hybrid technology is still in its early stages and sales volume is still low. He also said that he believes that it will be very difficult to persuade buyers to pay the extra money for a hybrid vehicle unless gasoline reaches a price of around $8 per gallon.

Analysts are concerned that if GM continues to pursue hybrid technology it will harm its sales of a new group of large Subs and pick-ups to be launched next year. Still, GM is planning on introducing hybrid versions of its GMC Yukon and Chevrolet Tahoe in late 2007, and to follow those by the launch of hybrid pick-ups.

They developed the hybrid technology they will use in conjunction with Daimler Chrysler and BMW. In addition to the implementation of hybrid technology, GM also plans on brushing up its environmental credentials by improving fuel efficiency by 10 percent on its non-hybrid vehicles.

US electronics and telecommunications company Motorola is said to be considering selling off its automotive products unit, a move some say could bring in over $1 billion.

The sale would fit into the plans of the company’s chief executive, who has been focusing more on the telecommunications side of its business. Selling the automotive products unit, which mainly makes products used in vehicle navigation and safety devices and sensors used in steering, braking and other systems, also makes sense in light of competition in the auto parts sector and the trend toward lower vehicle production and rising prices.

On the other hand, the company’s mobile phone handset business, which is gaining ground on sector leader Nokia by introducing products such as the super-thin RAZR mobile phone, brought in more than 50 percent of Motorola’s $31.1 billion in revenues last year. The automotive products unit employs around 5,000 people and had sales of around $1.7 billion last year.