Kraft Foods Announces Steps to Position for a Successful Spinoff; Expects Strong 2011 Results (KFT)
Kraft Foods Inc. (NYSE: KFT), the Northfield, Illinois-based manufacturer and marketer of packaged food products, today announced a number of steps which will ensure that its North America-based snacks and grocery businesses are well-positioned to become two independent public companies before the end of this year. The company also said that it expects strong results for 2011.
Kraft today said that key decisions relating to the successful spinoff include realigning the U.S. sales organization, consolidating U.S. management centers and streamlining the corporate and business unit organizations. The actions will result in the reduction of nearly 1,600 jobs in North America throughout 2012.
Irene Rosenfeld, Chairman and CEO of Kraft Foods, said that when Kraft announced its decision to create two world-class companies last August, it said both would be leaner, more competitive organizations. Rosenfeld also said that for the past year, Kraft’s North American team has been working to streamline operations to deliver sustainable top-tier performance and continue to invest in the company’s iconic brands. Rosenfeld added that Kraft is confident that the transformational work will improve effectiveness and fuel the future growth of both companies.
Kraft also reported today that strong fourth-quarter sales will lead to strong fiscal 2011 results. Rosenfeld said that Kraft finished 2011 with strong business momentum in each of its geographies and that the company’s virtuous cycle of investment continues to pay off around the world, despite a difficult operating environment.
Kraft expects net revenue for full year 2011 to have grown nearly 10%. The company raised its organic net revenue growth forecast to 6.5% from 6%. Diluted earnings per share for 2011 are expected to come in at $1.95.
Kraft Foods shares have risen sharply in trading today. The stock rose to a new 52-week high of $38.53 in trading today. At last check, it was up 1.51% to $38.34.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht. |
