Kraft Foods Inc. (NYSE: KFT) is close to nine-year highs and the company is outlining its expectations for the spin-off that has been in the works for some time. The company sees total earnings for 2011 at $1.95 EPS but it gave a figure of adjusted earnings of $2.28 EPS. Net revenue is expected to have risen roughly 10% for 2011.
The food giant and DJIA component has noted that its snacks and grocery units are well-positioned to become two different public company stocks by the end of 2012. Kraft also noted that it will be eliminating roughly 1,600 positions in North America during 2012. Some are not layoffs because they are counting open positions (put at 20% of the total), if you believe the company. The big note is that about 40% of the cuts are said to be due to a realignment of its U.S. sales force.
The company plans to close its Glenview, Illinois management center by the end of 2013 and units are to relocate to the Chicagoland area by the end of 2012. The move will take management centers to two from four. It will relocate the beverages unit in Tarrytown, New York and the Planters brand in East Hanover, New Jersey.
After a 1.4% gain to $38.30 so far this Tuesday, Kraft’s (prior) 52-week trading range is $30.21 to $38.27.
JON C. OGG
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