Mondelez beats estimates
Nov 07, 2012 (Menafn - Chicago Tribune - McClatchy-Tribune Information Services via COMTEX) --Mondelez International beat earnings expectations Wednesday, but missed revenue targets due to currency fluctuations.
Formerly known as Kraft Foods, the company changed its name last month after spinning off its North American grocery business. Now a 36 billion company with snack and beverage products including Oreo, Ritz and Tang, Deerfield-based Mondelez does less than 20 percent of its business in North America. Europe is the company's largest market, accounting for 37 percent of sales.
For the third quarter ended Sept. 30, earnings per share declined 2.6 percent to 37 cents. Analysts had been expecting 36 cents, according to Bloomberg.
Sales declined 5 percent to 8.3 billion due to currency fluctuation. Analysts had been expected sales of 8.64 billion.
"As we expected, our top-line growth this quarter was modest," Mondelez CEO Irene Rosenfeld said in a statement. "This reflected the lapping of our exceptional performance in the third quarter last year and a lower contribution from pricing."
Developing market growth was dented by poor performance in Brazil and Russia, where the company cited "short-term executional issues," for which Mondelez has already taken action and expects fourth-quarter revenue growth to increase in the high single digits.
The company will hold an earnings call with investors at 4 p.m.
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