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Earnings Roundup

Kraft Foods

Profit falls 40% amid slower sales

November 04, 2009|Times Wire Reports

Kraft Foods Inc. said Tuesday that slower sales, lower retail food prices and the comparison with a gain a year ago helped cut its third-quarter profit 40%, but the company raised its forecast for the year.

The Northfield, Ill., company said it remained interested in a possible offer for British candy company Cadbury but did not disclose a time frame or price.

Kraft, the nation's largest food maker, earned $824 million, or 55 cents a share, for the quarter ended Sept. 30, compared with $1.36 billion, or 91 cents, a year earlier, when the results included the Post Cereal business that it has since sold.

Revenue fell nearly 6% to $9.8 billion, hurt by the stronger dollar.

Analysts polled by Thomson Reuters expected the company to earn 48 cents a share on revenue of $10.32 billion. Analyst expectations typically exclude one-time items.

Kraft increased its profit forecast for the full year from $1.93 to $1.97 a share, given its performance thus far and a lower tax rate. Analysts expect $1.97 a share for the year.

Kraft shares declined 84 cents, or 3.1%, to $26.70.

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