Kraft Profit Falls but Co. Raises Outlook for Year

Kraft Foods Inc. is still interested in acquiring Cadbury PLC but plans to deliver solid results with or without the British candy maker, Kraft said Tuesday.

FILE - In this Feb. 2, 2009 file photo, Kraft Foods Macaroni & Cheese dinners are seen on display at...

FILE - In this Feb. 2, 2009 file photo, Kraft Foods Macaroni & Cheese dinners are seen on display at a market in Palo Alto, Calif. Kraft Foods said slower sales and lower retail food prices cut into its third-quarter profit, but the company raised its forecast for the year Tuesday, Nov. 3, 2009. (AP Photo/Paul Sakuma, file)

(AP)

Kraft has little time left to make a firm offer for Cadbury. British regulators set a Nov. 9 deadline for Kraft to make a formal bid or walk away for six months. The company announced in September that it had made a $16.7 million initial proposal for Cadbury and was rebuffed.

Kraft officials would not disclose the price or timing of a potential offer, saying they were limited by regulations. But they hinted it may come soon, suggesting investors watch the company's official filings.

If Kraft does acquire Cadbury, it would create an industry giant, combining the world's second-largest food maker and one of the world's largest confectioners.

Kraft CEO Irene Rosenfeld reiterated that the company will maintain a disciplined approach to the deal. Kraft is committed to maintaining its investment-grade credit rating and to paying investor dividends, she said.

"Let me underscore once again, with or without Cadbury, Kraft Foods is well-positioned to deliver top-tier performance," Kraft CEO told investors.

Kraft reported Tuesday that it earned $824 million, or 55 cents per share in its third quarter, down from $1.36 billion, or 91 cents per share, a year earlier, when its results included a 57 cent gain from the Post Cereal business it has since sold.

The company's said its profit margins and sales volume rose from previous quarters but lower retail prices on some products, such as cheese — which Kraft slashed when costs for key ingredients dropped — took a toll.

Revenue fell nearly 6 percent to $9.8 billion, also hurt by the impact of the stronger dollar on its revenue earned abroad.

Analysts polled by Thomson Reuters expected the company to earn 48 cents per share on revenue of $10.32 billion. Analyst typically exclude one-time items.