TribLIVE

| Home


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Kraft split produces profitable quarter

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

By The Associated Press
Wednesday, Nov. 7, 2012, 6:32 p.m.
 

NEW YORK — Kraft Foods is embracing the spirit of a startup and betting that innovation will help it grow, as the maker of household names such as Oscar Mayer, Miracle Whip and Velveeta looks to redefine itself after splitting from its more glamorous global snack foods business.

The company, which was established in 1903, said Wednesday that its net income rose 13 percent in the third quarter, as a mix of new products, increased advertising and productivity improvements lifted results. But the company cautioned that there were limitations to the conclusions that could be drawn from the comparison with last year, before the companies split.

Although it stood by its outlook for 2013, Kraft said revenue in the fourth quarter should be flat or down as it prunes less-profitable products and continues incurring restructuring costs.

The results are the first since Kraft Foods Group Inc., based in Northfield, Ill., split with its snack food business. That company, which is called Mondelez International Inc. and has brands including Oreo, Cadbury and Nabisco, is expected to grow at a faster rate than Kraft.

The split was intended to allow each of the companies to focus on a more targeted portfolio of products, thus accelerating growth.

At Kraft, CEO Tony Vernon said the company felt like a startup of sorts after the break, with executives working to clean up the company's lineup of less-profitable product extensions and revitalize languishing brands.

In coming months, for example, Vernon said Jell-O would be a brand “moms and kids are going to rediscover” as the company rolls out new packaging and marketing.

Jell-O, along with Planters and Capri Sun, had volume declines in the quarter.

 

 
 


Show commenting policy

Most-Read Stories

  1. Kobani emerges as pivot point
  2. Robinson: Rooney retains North Side roots
  3. Penguins’ Crosby OK with Neal comments about trade
  4. Pitt notebook: Conner quietly surpasses 1,000 yards rushing
  5. Corbett vows to protect coal industry at Armstrong County rally
  6. Georgia Tech runs all over mistake-prone Pitt
  7. Penn State players regroup amid losing streak
  8. Penn State notebook: Dieffenbach’s season debut remains on hold
  9. Fired coal miners find employment in Wyoming
  10. Tech companies lay claim to ‘Silicon Beach’
  11. Steelers notebook: Ex-Steeler Sanders living up to his word
Subscribe today! Click here for our subscription offers.