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Earnings Roundup / Kraft

Profit sinks 72% on restructuring

February 05, 2009

Kraft Foods Inc. said its fourth-quarter profit fell 72% because of costs related to a restructuring program, and the company cut its 2009 guidance because of the stronger dollar and pension costs.

The Northfield, Ill., maker of Velveeta, Oreo cookies and Maxwell House coffee reported net income of $163 million, or 11 cents a share, compared with $585 million, or 38 cents, a year earlier.

Excluding one-time items, net income was 43 cents a share -- a penny short of analysts' estimate.

Revenue rose 6% to $10.77 billion. That missed analyst predictions of $11.29 billion as North American volume fell amid markdowns and inventory reduction by retailers and as the company pruned less-profitable items.

Kraft shares fell $2.63, or 9.2%, to $26.11.

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