Mondelez Raises Its Outlook, Citing Tax Benefit
Mondelez on Tuesday beat on earnings and raised its full-year forecast, citing a benefit from a tax item.
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The newly independent maker of Cadbury chocolates and Oreo cookies said net income fell to $568 million, or 32 cents a share, from $813 million, or 46 cents a share, in the year-earlier period.
Excluding items, earnings fell to 34 cents a share from 57 cents a share in the year-earlier period.
Revenues declined 33.5 percent to $8.7 billion, from $13.09 billion a year ago.
Analysts had expected the company to report a profit of 33 cents per share on $8.68 billion in revenue, according to a consensus estimate from Thomson Reuters.
Revenues from emerging markets accelerated, led by double-digit gains in China, Brazil and India, and continued improvement in Russia, the company said in a statement.
In October 2012, Kraft Foods spun off its global snacks and candy group, including the Oreo and Cadbury product lines, and changed its name to Mondelez International. Kraft still maintains the Oscar Mayer, Miracle Whip, Jell-O and Velveeta brands, among others.
"Our first quarter results were in line with the expectations we outlined earlier this year as we work through some near-term headwinds," said Irene Rosenfeld, chairman and CEO of Mondelez.
The company stood by its 2013 goal for revenue growth at the low end of its long-term growth target of 5 to 7 percent, but raised its earnings goal to $1.55 to $1.60 per share from a prior forecast of $1.52 to $1.57 per share. Analysts on average were expecting $1.56 per share.