Kraft Foods Inc. (NASDAQ: KFT) has reported earnings of $ $0.58 EPS, but its operating earnings came to $0.68 EPS; revenue was down 4% to $13.3 billion on a net basis and the food giant said that its organic net revenues grew by 3.4%. Thomson Reuters had estimates of $0.66 EPS and $13.96 billion in sales.
The food giant’s spin-off of its North American Grocery business is now set for October 1, 2012. Kraft further said that it is confirming its 2012 guidance of approximately 5% organic net revenue growth and at least 9% Operating EPS growth on a constant currency basis.
As far as the negative revenues, the report blames negatives being due to a 5.0 percentage point headwind from currency and a negative 2.7 percentage point impact due to the benefit of accounting calendar changes in the prior year quarter. Operating earnings per share rose by 12.9 percent on a constant currency basis.
At the time of the spin-off, each of the company’s shareholders entitled to receive shares of Kraft Foods Group will receive one share of Kraft Foods Group for every three shares of Kraft Foods Inc. The record date will come at some point in mid-September and when-issued shares will trade then. Starting on October 2, 2012, Kraft Foods Group will begin to trade on The NASDAQ Global Select Market under the ticker symbol “KRFT” and Kraft Foods Inc. will change its name to Mondelez International, Inc. and change its ticker symbol to “MDLZ.” The current ticker symbol of “KFT” will be retired.
The company has named its boards of directors to oversee the independent companies after the spin-off.
JON C. OGG