Kraft 4Q Net Rose 54% On Higher Prices; Costs Hurt Margins

Date : 02/21/2012 @ 7:24AM
Source : Dow Jones News
Stock : Mondelez International, Inc. (MM) (KFT)
Quote : 42.52  0.0 (0.00%) @ 2:05AM

Kraft 4Q Net Rose 54% On Higher Prices; Costs Hurt Margins

Historical Stock Chart

5 Years : From Jan 2013 to Jan 2018

Click Here for more Kraft Charts.

Kraft Foods Inc.'s (KFT) fourth-quarter earnings rose 54% as higher prices continued to boost the packaged-food giant's revenue, though increased costs hurt margins.

The maker of Kraft cheese, Oscar Mayer lunch meats and Planters nuts has been able to pass along price increases relatively well as its profits have grown in recent quarters, despite rising commodity costs. The company said last month it will cut about 1,600 positions in North America throughout 2012 as it prepares to split itself into two companies: a global snack company and a North American grocery business.

Kraft reported a profit of $830 million, or 47 cents a share, up from $540 million, or 31 cents, a year earlier. Excluding acquisition, integration, divestitures and other items, earnings were 57 cents in the most-recent quarter.

Revenue jumped 6.6% to $14.69 billion and organic revenue grew 6.1%.

Analysts polled by Thomson Reuters had most recently forecast earnings of 57 cents on revenue of $14.79 billion.

Gross margin fell to 33.3% from 34.8% as input costs jumped 9.1%.

Operating profit at Kraft's North American business was up 8.9% as organic revenue rose 7%. European operating profit increased 7.5%, while organic revenue grew 3.1%.

Kraft also forecast 2012 organic revenue growth of about 5%, including a negative impact of up to one percentage point from product pruning in North America.

Shares closed Friday at $38.01 and were inactive premarket. The stock has risen 1.7% so far this year.

-By Melodie Warner, Dow Jones Newswires; 212-416-2283;

Latest KFT Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....

No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.