Kraft Foods Reports Mixed Earnings (KFT)

Kraft Foods Inc. KFT reports Q2 earnings of $0.60 versus estimates of $0.52. Kraft Foods Inc. reports Q2 revenues of $12.25 billion versus estimates of $12.33 billion. The company reported organic revenue growth of 2.2% and an increase in operating income of 16.8% to $1.7 billion. Kraft Foods adjusted its forecast for 2010 Combined Organic Net Revenue growth to a range of 3 to 4 percent from prior guidance of at least 4 percent. The change in outlook reflects the normalizing of Cadbury's trade inventory practices as well as an aggressive promotional environment in certain U.S. categories. The company also confirmed its guidance for 2010 operating earnings per share of at least $2.00. "We delivered strong earnings in the quarter and the first half of the year, despite difficult conditions in many markets that tempered top-line growth," said Irene Rosenfeld, Chairman and CEO. "We're making excellent progress on the Cadbury integration and expect to realize even greater synergies. In light of our strong earnings momentum, we will reinvest our 2010 upside to build our brands and to harmonize business practices. We will deliver at least $2.00 of Operating EPS this year while building a stronger foundation to achieve top-tier growth in 2011." Shares of KFT are higher in the after-hours trade.