Kraft Foods Inc. the North American food maker, posted a better than expected first quarter profit as higher prices and new products helped sales of the company in a market where commodities such as wheat and oil were soaring.
Revenue rose 21 percent to $10.4 billion the company said. Net income dropped 13 percent to $608 million or 40 cents a share compared to $702 million or 43 cents .
The second largest food maker of the world said today its profit was $608 million or 40 cents a share, compared to $702 million or 43 cents a share in 2007 on the same period.
Excluding specific items the group reported its earnings were 44 cents a share the same than the previous year and above the forecast of 41 cents estimated by analysts, according to Bloomberg.
The producer of Kraft Cheese also raised its full year outlook at least 5 percent for revenue growth of $1.90 a share excluding costs. Analysts forecast $1.91 a share according to reports.
The company rose cheese prices 25 percent and U.S. snack and cookie prices by 8 percent. However its profit in cookies, crackers and Post cereals were affected by rising costs of wheat.
Shares of Kraft closed 2.79 percent up at $31.63 a share on the New York Stock Exchange on Wednesday composite trading.