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Kraft profit beats expectations, Cadbury bid awaited
By Reuters
A box of Kraft Macaroni and Cheese is pictured in Burbank, California May 4, 2009. REUTERS/Fred Prouser
CHICAGO (Reuters) - Kraft Foods Inc <KFT.N> posted a quarterly profit that beat analysts estimates, less than a week before the Oreo cookie maker is expected to formalize its bid for British chocolatier Cadbury Plc <CBRY.L>.
The world's second-largest food company posted third-quarter earnings of $826 million, or 55 cents a share, compared with $1.36 billion, or 91 cent a share, a year earlier. Year earlier results included 57 cents a share in discontinued operations.
Analysts on average forecast 48 cents a share, according to Thomson Reuters I/B/E/S.
Kraft, which has seen earnings boosted by lower commodity costs even as strength in the dollar has weighed on revenue, has until November 9 to make a formal bid for Cadbury. On September 7, Kraft disclosed that it had approached Cadbury with an offer that was then worth $16.7 billion, an offer Cadbury's board rejected.
Kraft shares were down at $27.10 in extended trade from Tuesday's New York Stock Exchange close of $27.54.
(Reporting by Brad Dorfman)
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