Kraft Foods Inc., (KFT) the world’s second-largest food company, lowered its full-year earnings forecast because of rising commodity costs. Kraft, led by Chief Executive Officer Irene Rosenfeld, cited surging commodity costs and “persistent consumer weakness in many markets,” according to the statement. Food and beverage companies such as Kraft, Sara Lee Corp. and General Mills Inc. have raised prices on many products to cope with rising costs of wheat, corn and sugar.
Rosenfeld went on to say “We expect the operating environment to remain challenging,” Kraft fell as much as 61 cents, or 1.9 percent, to $30.50 in extended trading, after closing at $31.11 in New York Stock Exchange composite trading. Net income at the maker of Oreo cookies and Cadbury chocolate fell to $540 million, or 31 cents a share, from $710 million, or 48 cents, a year earlier. Excluding some items, profit was 46 cents a share.
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