Kraft Foods Earnings Fall 10%, Meets Views

Kraft Foods Group Inc KRFT posted a 10 percent decline in third-quarter earnings Wednesday that the company attributed partly to a charge for post-employment benefits.

Revenue was nearly flat as higher prices offset significantly higher commodity costs.

Results met expectations, but Kraft lost 2.5 percent in the extended session, trading at $55.50 per share.

Chief Executive Antonio J. Lucio said the company is "on track to deliver earnings growth" in line with earlier guidance "despite a rapidly changing consumer environment."

But Lucio said free cash flow of $554 million year to date has been "held back" by a combination of higher inventory levels as well as a reduction in accrued liabilities.

The recent post-employment benefits charge amounted to $110 million, or $0.03 per share, versus a year-earlier gain of $0.18 per share on a related item.

Net earnings fell to $446 million, or $0.74 per share, from $500 million, or $0.83 per share a year earlier. Revenue totaled $4.4 billion, versus $4.39 billion last year.

Analysts expected $0.74 per share on revenue of $4.47 billion.