January 31, 2008

Kraft reports Q4 earnings to drop 6 percent

Kraft Foods said Wednesday its fiscal fourth-quarter earnings fell 6 percent on higher dairy costs and one-time charges.

The company's net earnings dropped to US$585 million, or 38 cents per diluted share, for the three months ended December 31, from last year's US$624 million, or 38 cents per diluted share.

Earnings per share were 44 cents per share, in line with Wall Street's estimates, according to a Thomson Financial poll.

Meanwhile, sales jumped 11 percent to US$10.4 billion, but the company attributed the earnings decline to a 40 percent hike in dairy costs.

Around one fifth of Kraft's revenue comes from cheese.

For the full year ended December 31, Kraft's earnings fell 15 percent, hitting US$2.6 billion, or US$1.62 per share. Yearly sales totaled US$37.2 billion, an 8.4 percent increase.