by kennynah » Mon Jul 28, 2008 8:24 pm
beats top line by ~usd480mil but misses bottom by 2 cents
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Kraft Foods Q2 profit rises; revenue up 21.4%; revises FY08 outlook
7/28/2008 7:42 AM ET
(RTTNews) - Kraft Foods Inc. (KFT: News, Chart, Quote ) on Monday reported second-quarter net earnings of $732 million, or $0.48 per share, compared with $707 million, or $0.44 per share, a year ago.
During the quarter, the company incurred $0.05 per share in asset impairment, exit, implementation and other costs, compared to $0.06 in the same quarter a year ago. The company also incurred $0.04 in losses on the divestiture of certain biscuit assets that was required as part of the company's LU biscuit acquisition.
Second-quarter earnings per share excluding items were $0.58, an increase of 16% from $0.50 in the second quarter 2007.
During the quarter, revenues rose 21.4% to $11.18 billion from $9.21 billion in the prior-year quarter.
Analysts were looking for earnings of $0.50 per share on revenues of $10.70 billion.
Going ahead, Kraft has raised its outlook for 2008 organic net revenue growth to at least 6%, up from a previous expectation of at least 5% as a result of further pricing actions to offset rising input costs.
Additionally, the company now expects 2008 earnings per share of at least $1.54, down from the previous expectation of at least $1.56, reflecting better-than-expected growth from operations, offset by a $0.04 loss on the divestiture of certain biscuit assets.
Excluding items, the company now expects earnings of at least $1.92 per share versus at least $1.90 previously to reflect better-than-expected growth from operations.
Analysts project full-year 2008 earnings of $1.89 per share.
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