Kraft Foods grows 3.7 percent in second-quarter

Kraft Foods Inc. said Wednesday its second-quarter profit rose 3.7 percent on higher sales and lower restructuring charges for the nation's biggest food and beverage maker.

The Northfield-based maker of Nabisco cookies, Oscar Mayer meats and Post cereals said its earnings rose to $707 million, or 44 cents per share for the April-through-June period. That is up from $682 million, or 41 cents per share during the same period last year.

"I am pleased to report that we made further progress in the second quarter to return Kraft to reliable growth," Chief Executive Irene Rosenfeld said in a statement.

The latest quarter included 6 cents per share in asset impairment, exit and implementation costs, down from the 10 cents-per-share charge last year.

Excluding such items, Kraft's income fell to $802 million, or 50 cents per share, from $852 million, or 51 cents per share.

Revenue climbed 6.8 percent to $9.21 billion from $8.62 billion, beating Wall Street forecasts thanks in part to the United Biscuits Iberia acquisition and a currency benefit.

On average, analysts surveyed by Thomson Financial forecast a quarterly profit of 47 cents per share on revenue of $8.97 billion. Analyst estimates typically exclude one-time charges.

The company, which employs about 3,000 people in the Chicago area, said a lower tax rate and share buybacks also lifted results in the latest quarter.

In addition, Kraft executives said they were raising the company's fiscal year guidance.

Kraft said it now expects to earn $1.55 to $1.60 per share, up from its previous estimates of $1.50 to $1.55 per share.

Kraft shares fell 32 cents to $32.43 Wednesday.