NORTHFIELD, Ill. (AP) — Kraft Foods Inc.'s third-quarter profit jumped 22 percent as higher prices helped offset increased costs for the food maker.
The company reported Wednesday that it earned $922 million, or 52 cents per share, for the quarter that ended Sept. 30. That's up from $754 million, or 43 cents per share, last year.
After adjusting for integration costs related to its acquisition of Cadbury, the company earned 58 cents per share versus 47 cents per share in the prior period.
Kraft's revenue rose nearly 12 percent to $13.23 billion.
The results beat analyst expectations of 55 cents on revenue of $12.8 billion for the quarter.
Kraft also raised its full-year outlook on Wednesday. It now expects to earn $2.27 per share, in line with analyst expectations and up from its prior forecast of $2.25 per share. Revenue is expected to increase 6 percent, up from its prior forecast of a 5 percent increase.
The food industry is facing several challenges these days, including higher costs for ingredients and limited spending by consumers in developed markets like the U.S. Kraft and other companies have been able to offset some of these pressures by raising prices and expanding in emerging markets like China where demand is increasing.
Kraft is in the process of splitting its business into two publicly traded companies. One will focus on its international snack brands like Trident gum and Cadbury chocolates while the other will concentrate on its North American grocery business that includes Maxwell House coffee and Oscar Mayer meats.
The company, based in Northfield, Ill., expects the split to be complete before the end of next year. It is one of a string of U.S. companies to divide its business to cater to different niche markets as a means to deliver growth for investors.
Shares of the company rose 31 cents to $34.95 in after-hours trading on the news.
