Ritz, Triscuit and Oreo shine at Kraft in quarter
NORTHFIELD, ILL. — Ritz and Triscuit crackers and Oreo cookies were among brands enjoying solid sales growth for Kraft Foods Inc. in the second quarter ended June 30. Operating income for Kraft Foods North America was $1,187 million, up 11% from the second quarter last year. For U.S. Snacks, operating income in the quarter was $240 million, up 17%. Sales were $6,062 million, up 6%. Adjusted for the impact of currency changes and the Cadbury acquisition, revenues were down 1.3%. Kraft said the sales gains for the stronger brands were due to “benefits of investments in marketing and innovation.”
Net income at Northfield-based Kraft was $937 million, equal to 54c per share on the common stock, up 13% from $827 million, or 56c, in the second quarter last year.
Irene Rosenfeld, Kraft chairman and chief executive officer, said the company achieved “strong earnings” in the face of “difficult conditions in many markets that tempered top-line growth.” She described progress toward integrating the acquired Cadbury business as “excellent,” and predicted synergies even greater than expected. “In light of our strong earnings momentum, we will reinvest our 2010 upside to build our brands and to harmonize business practices,” she said. “We will deliver at least $2 of operating earnings per share this year while building a stronger foundation to achieve top-tier growth in 2011.”