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Kraft 2Q edges forecast
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July 18, 2001: 10:39 a.m. ET
Food firm tops sales estimates; net profit down sharply from year ago
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NEW YORK (CNNfn) - Kraft Foods, Inc., the biggest U.S. food company, reported sharply lower second-quarter net earnings Wednesday, but edged Wall Street expectations, reflecting higher sales volume and growth in new markets.
The company also said it anticipates fiscal 2001 earnings per share within the range of Wall Street forecasts of $1.19, according to earnings tracker First Call.
Kraft (KFT: down $0.28 to $31.17, Research, Estimates), which Philip Morris (MO: up $0.55 to $45.40, Research, Estimates) spun off as a publicly traded company last month, said earnings including its acquisition of Nabisco and other one-time items, increased 13.5 percent to $581 million, or 33 cents a share, from $512 million, or 30 cents a share, a year earlier. Analysts on average anticipated 32 cents a share, according to First Call.
However, Excluding Nabisco and other items, the company reported net profit of $505 million, or 33 cents a share, down 11.1 percent from $568 million, or 39 cents a share, a year earlier.
Operating revenue increased 24.6 percent to $8.7 billion from $7 billion.
"Kraft had a strong quarter, with earnings growth driven by higher volume from new products and strong growth in developing markets," co-CEO Betsy Holden said. "Earnings were in line with our expectations for the quarter, and we are pleased with the results." 
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