NEW YORK (CNN/Money) - Shares of Kraft Foods fell sharply on Thursday, a day after the largest North American food maker forecast that shipments to retailers in 2002 would be at the low end of a previous forecast range.

Siebel Systems stock also traded lower to a three-year low after the software maker said second-quarter net profit fell 61 percent, and also noted business would stay weak in the second half.

But shares of Celestica soared after the world's fourth-largest contract electronics manufacturer posted a second-quarter profit that inched above expectations and said it would cut jobs to further improve profits.

Kraft Foods (KFT: down $2.81 to $35.13, Research, Estimates). The Northfield, Ill.-based food company reported second-quarter earnings and forecast that 2002 shipment volumes would rise about 3 percent, at the low end of its earlier target of 3 percent-to-4 percent.

XL Capital (XL: down $9.00 to $65.50, Research, Estimates). The insurer said its earnings would be hit by hefty claims from the Sept. 11 attacks and losses on investments that include WorldCom.

Baxter International (BAX: down $11.41 to $32.00, Research, Estimates). Merrill Lynch downgraded the medical device maker to "buy" from "strong buy" after the firm posted second-quarter earnings that met Wall Street estimates but fell short of its sales estimate for the quarter.

Automatic Data Processing (ADP: down $9.75 to $31.60, Research, Estimates). The U.S. payroll services company warned of slower profit growth ahead. Prudential Securities downgraded the stock to "sell" from "hold."

PNC Financial Services (PNC: down $6.91 to $39.69, Research, Estimates). U.S. federal regulators said Thursday they had reached a settlement with the financial services firm over its use of accounting maneuvers to transfer $762 million in troubled assets off its balance sheet.

Insight Enterprises (NSIT: down $10.38 to $13.36, Research, Estimates). The direct seller of computers on Wednesday lowered its second-quarter earnings outlook to between 26 cents and 29 cents a share from an earlier projection of 31 cents-to-35 cents.

Siebel Systems (SEBL: down $2.12 to $9.62, Research, Estimates). Credit Suisse First Boston slashed its 2002 estimate for the business software provider to 28 cents a share from 44 cents a share, and its 2003 estimate to 26 cents from 50 cents, a day after the company posted a sharp drop in its second-quarter profit, missing Wall Street estimates. The firm also slashed its price target on the stock to $15 from $26.

Eli Lilly (LLY: down $2.36 to $48.54, Research, Estimates). The pharmaceutical firm posted a sharp drop in second-quarter profit, hurt by plunging sales of its antidepressant Prozac and flat sales of its new blood infection medicine Xigris. The company posted earnings of 61 cents per share, in line with Wall Street estimates, and compared with 76 cents a share in the year-earlier quarter.

Charter Communications (CHTR: down $0.56 to $3.50, Research, Estimates). Merrill Lynch downgraded the cable company to "neutral" from "strong buy" due to lack of visibility and continued accounting worries.

Symantec (SYMC: down $1.53 to $31.57, Research, Estimates). The maker of computer security products and services on Wednesday posted a first-quarter profit that beat expectations, citing unexpectedly strong consumer sales of anti-virus software. The company also announced it agreed to acquire privately held security providers Recourse Technologies, Riptech and Securityfocus for a total of about $355 million in cash. Bear Stearns downgraded the stock to "neutral" from "attractive."

AOL Time Warner (AOL: down $0.66 to $12.45, Research, Estimates). The media powerhouse's chief operating officer, Robert Pittman, will resign soon. In addition, the Washington Post reported Thursday that America Online engaged in questionable revenue reporting practices both before and after the 2001 merger with Time Warner; the company says its accounting practices are in accordance with accepted standards. AOL Time Warner is the parent company of CNN/Money.

Nokia (NOK: down $0.79 to $13.33, Research, Estimates). The world's biggest cell phone maker reported a second-quarter profit that was generally in line with recently lowered forecasts and generally reaffirmed its forecast for second-half income.

Itron (ITRI: down $7.23 to $14.82, Research, Estimates). First Albany downgraded the technology provider to "underperform" from "neutral."

Tetra Tech (TTEK: down $3.29 to $10.40, Research, Estimates). The management consulting services company on Wednesday reported third-quarter earnings that missed Wall Street estimates, and warned about its fourth quarter.

Celestica (CLS: up $3.31 to $22.00, Research, Estimates). The electronics manufacturing firm posted second-quarter profit of $40 million, or 15 cents a share, up from $16 million, or 6 cents per share, in the year-earlier quarter. The company also said it will cut 15 percent of its work force, or 6,000 employees, and take a charge of $300 million-to-$375 million by the end of its fiscal year.

Sprint PCS (PCS: up $0.50 to $5.50, Research, Estimates). The wireless telephone company posted a narrower second-quarter loss of 17 cents compared with a loss of 26 cents a year earlier.

Cooper Tire & Rubber (CTB: up $0.72 to $18.72, Research, Estimates). The tire manufacturing firm posted a second-quarter profit of $39 million, or 52 cents a share, compared with $18 million, or 25 cents, a year earlier. Analysts expected the company to earn 48 cents a share in the quarter. Revenue increased 1 percent to $836 million from $829 million.

Internet Initiative Japan (IIJI: up $1.25 to $4.75, Research, Estimates). The Internet provider may join operations with data transmission firm PoweredCom and two other companies in what would create Japan's fourth-largest fixed-line telecom firm, the company said.

Orphan Medical (ORPH: up $0.42 to $10.17, Research, Estimates). The U.S. Food and Drug Administration on Wednesday approved the use of the drugmaker's Xyrem medication for some patients with narcolepsy.  

-- from staff and wire reports