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Kraft Foods 2Q Profits Fall 42 Percent

Kraft Foods, popular for its Velveeta and Oreo brands, reported a 42 percent decline in its second quarter net income. The Northfield, Illinois-based company said its earnings fell to $482 million compared to $829 million in the same quarter last year.

NORTHFIELD, Ill. (AP) — Kraft Foods Group Inc. on Wednesday reported net income that declined by 42 percent in its second quarter, and missed analysts' expectations.

The Northfield, Illinois-based company said earnings fell to $482 million, or 80 cents per share, from $829 million, or $1.38 per share, in the same quarter a year ago. The average per-share estimate of analysts surveyed by Zacks Investment Research was for earnings of 83 cents.

The company posted revenue of $4.75 billion compared with $4.72 billion in the same quarter a year earlier, and missed Wall Street estimates. Analysts expected $4.88 billion, according to Zacks.

Kraft Foods shares have climbed $3.33, or 6.2 percent, to $57.24 since the beginning of the year, while the Standard & Poor's 500 index has climbed 6.6 percent. The stock has increased 66 cents, or 1.2 percent, in the last 12 months.