logo
Share SHARE
FONT-SIZE Plus   Neg

Kraft Foods Posts Higher Q4 Profit - Quick Facts

Kraft Foods Inc.'s (KFT) fourth-quarter net earnings attributable to the company climbed to $830 million or $0.47 per share from $540 million or $0.31 per share in the prior-year quarter.

Including a negative impact from foreign currency of $0.01, quarterly operating earnings per share amounted to $0.57 versus last year's $0.46. On average, 18 analysts polled by Thomson Reuters expected earnings per share of $0.57 for the quarter. Analysts' estimates typically exclude one-time items.

Net revenues for the fourth quarter were $14.69 billion, up 6.6 percent from $13.77 billion a year earlier, with organic net revenues up 6.1 percent. Analysts estimated revenues of $14.79 billion for the quarter

For 2012, Kraft Foods sees organic net revenue growth of nearly 5 percent, including a negative impact of up to one percentage point from product pruning in North America, with operating earnings per share anticipated to grow at least 9 percent on a constant currency basis, despite a higher effective tax rate and a 4 percentage point headwind from higher pension costs.

Further, the company said it would incur one-time restructuring, transition and transaction costs of $1.6 billion - $1.8 billion as it prepares to separate into two companies later this year. Also, the company anticipates that it may incur between $400 million and $800 million of potential debt breakage and financing fees as it executes a migration of debt to the North American grocery company.

Irene Rosenfeld, Chairman and CEO remarked, "We expect to deliver top-tier growth in 2012, in line with our long-term targets, while we prepare to successfully launch the North American grocery and global snacks companies later this year."

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
The Justice Department has initiated a probe to find out if airlines are colluding to limit seating capacity in order to benefit from higher airfares. Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud has pledged to give away his entire wealth amounting to $32 billion for charity. He said the fund will be utilized for cultural understanding, develop communities, empower women, enable youth, provide vital disaster relief and create a more tolerant and accepting world. Toyota accepted the resignation of its Chief Communications Officer Julie Hamp, following her arrest in Japan for allegedly mailing banned painkillers to her address in Japan from U.S.
comments powered by Disqus
RELATED NEWS
Trade KRFT now with 
Follow RTT