Kraft 4Q profit down, income up 36% in year
Feb. 11, 2011
by Meat&Poultry Staff
NORTHFIELD, ILL. — Despite a decline in fourth-quarter profit due to integration costs related to the Cadbury acquisition, income for the full year at Kraft Foods Inc. was up 36%.
For the year ended Dec. 31, 2010, the company had earnings of $4,114 million, equal to $2.40 per share on the common stock, which compared with earnings of $3,021 million, or $2.04 per share, during the previous year. Revenue for the year was $49,207 million, up 27% from $38,754 million during the previous year.
“We delivered solid financial results in 2010 and finished the year with good momentum,” said Irene Rosenfeld, chairman and chief executive officer. “We’re realizing the benefits of increased investments behind our power brands, strong productivity and disciplined cash management, while making good progress in capturing the synergies from the Cadbury acquisition.
“Looking ahead, we expect the operating environment to remain challenging with significant input cost inflation and persistent consumer weakness in many markets. 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.”
For the fourth quarter ended Dec. 31, the company had earnings of $540 million, or 31c per share, down 24% from $710 million, or 48c per share, during the same quarter of the previous year. Revenue for the quarter was $13,773 million, down 30% from $10,597 million during the same quarter of 2009.
In 2011 the company expects to have organic net revenue growth of at least 5%.