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
Apple confirmed that it has bought face animation software firm Faceshift, although it was tight lipped about how it intends to use the new addition. The move is speculated as a bid to expand into virtual reality. Environment ministry of South Korea Thursday ordered Volkswagen Korea to recall 125,522 diesel vehicles on determining actual emissions of nitrogen oxides. The ministry has asked the German automobile maker to pay a fine of 14.1 billion Won or $12.31 million. The company has to submit a recall plan by January 6, 2016. The U.S. Food and Drug Administration has alerted health care professionals and patients of a voluntary recall of compounded multivitamin capsules containing high amounts of Vitamin D3 (Cholecalciferol), distributed nationwide by Glades Drugs in Pahokee, Florida. FDA has received reports of several...
comments powered by Disqus
Trade KHC now with 
Follow RTT