Kraft Foods forecasts weak revenue
New York, February 16, 2013
Kraft Foods Group forecast weaker-than-expected fourth-quarter revenue yesterday, saying it failed to adequately tailor its products to meet consumer demand for lower-priced foods.
Shares of Kraft, which was spun off late last year from Mondelez International, fell 1 per cent in premarket trade.
"We definitely stubbed our toe this quarter," chief executive Tony Vernon told analysts on a conference call. He said sales were hurt after rivals launched lower-priced items that Kraft did not match.”
Kraft, whose brands include Oscar Mayer lunch meat and Maxwell House coffee, said it now expects full-year 2013 earnings of about $2.75 per share, up from a previous forecast of $2.60.
The company expects fourth-quarter earnings of about 15 cents per share, including a one-time, non-cash charge of about 24 cents for post-employment benefits, 14 cents of restructuring charges, and a charge of 4 cents related to hedging activities.
Analysts expect fourth-quarter earnings of 22 cents per share on revenue of $4.74 billion, according to Thomson Reuters I/B/E/S. – Reuters