Kraft profit meets Street view; sales surprise

Kraft Foods Inc reported higher-than-expected quarterly sales on Thursday, helped by its acquisition of Cadbury.

The company, maker of Maxwell House coffee, Oreo cookies and Velveeta cheese, said fourth-quarter net income was USD 540 million, or 31 cents per share, down from USD 710 million, or 48 cents per share, a year earlier. Excluding costs related to the acquisition, Kraft earned 46 cents per share, meeting analysts' average estimate, according to Thomson Reuters I/B/E/S. Sales jumped 30% to USD 13.77 billion, due mostly to the addition of Cadbury. Analysts expected USD 13.47 billion. Kraft also said it expected 2011 growth of about 4% in "organic" revenue, excluding the impact of a fifty third week in this year's reporting calendar, and operating earnings growth of 11% to 13%. Organic revenue excludes currency moves and recent asset purchases and sales. Kraft shares fell to USD 30.95 in extended trading from their close at USD 31.11 on the New York Stock Exchange.