Kraft Foods reports $10.4B in 1Q revenues

Company officials say the results reflect continued momentum as Kraft enters the second year of its three-year turnaround plan.

“We expect our results to continue to strengthen as the year progresses,” said Chairwoman and CEO Irene Rosenfeld, in a news release.

The company expects cumulative annualized savings to reach approximately $1 billion by the end of the year as the result of its restructuring program, and $1.2 billion by the end of 2009.

Kraft, which has a Springfield manufacturing facility at 2035 E. Bennett St., (see page 14), reported first-quarter operating income of $1.2 billion, an increase of 3.8 percent compared to the same period in 2007.

First-quarter earnings per share for the publicly held company were 40 cents, down 7 percent from 43 cents for the same quarter in 2007, when earnings included 3 cents from a one-time interest benefit related to Kraft’s spinoff from Altria Group Inc.

Also during the quarter, Kraft repurchased 21.3 million shares at a total cost of $650 million, or an average price of $30.50 per share. As of March 31, the company had spent $4.2 billion under its $5 billion share-repurchase plan.

Kraft reported 2007 revenues of more than $37 billion. The company’s portfolio includes nine brands with revenues that exceeded $1 billion: Kraft cheeses, Oscar Mayer meats, Philadelphia cream cheese, Maxwell House coffee, Nabisco cookies and crackers, Oreo cookies, Jacobs coffees, Milka chocolates and LU biscuits.

Kraft shares (NYSE: KFT) closed June 3 at $32.05, compared to a 52-week range of $28.63 to $37.20.