February 14, 2011
 
Kraft Foods earnings drops 23%

Kraft Foods Inc. stated last Thursday (Feb 10) that fourth quarter profits dropped 23% in as rising input costs and low consumer demand carries on to challenge the company.

The Northfield, Ill.-based company posted net income of US$540 million, or 31 cents per diluted share, in the quarter ended December 31, 2010, compared with US$710 million, or 48 cents per share, in the same period a year ago. Operating earnings per share was 46 cents per share.

Sales rose 30% to US$13.8 billion.

Analysts polled expected earnings of 46 cents per share on revenue of US$13.47 billion.

"Looking ahead, we expect the operating environment to remain challenging, with significant input cost inflation and consumer weakness in many markets," Kraft's CEO Irene Rosenfeld said.

She added, "Given our strong business fundamentals, however, we remain confident that we will deliver earnings growth in 2011 that's both ahead of our long-term targets and within the top tier of our peer group."

Shares of Kraft closed Thursday (Feb 10) at US$31.11, down 13 cents, on the New York Stock Exchange.