Kraft Foods Inc reported higher-than-expected quarterly profit and raised its full-year outlook, citing strong sales momentum around the world.
North America's largest packaged food company, whose shares rose 1 percent in after-hours trading, said Wednesday that net income was $922 million, or 52 cents per share, in the third quarter, up from $754 million, or 43 cents per share, a year earlier.
Excluding items, earnings were 58 cents per share, topping analysts' average estimate of 55 cents per share, according to Thomson Reuters I/B/E/S.
Net revenue rose 11.5 percent to $13.23 billion. Organic net revenue rose 8.4 percent, driven by growth in all geographies.
Price increases, taken to offset higher commodity costs, contributed 7 percentage points of growth, while volume and mix of products contributed 1.4 points of growth.
The company raised its 2011 outlook, saying it expects organic revenue growth of at least 6 percent and operating earnings per share of at least $2.27. In August it forecast revenue growth of at least 5 percent and earnings of at least $2.25 per share.
"We've raised our outlook for the year due to the strong business momentum in each of our geographies," said Kraft Chief Financial Officer David Brearton in a statement. He added that the forecast excludes any potential impact from foreign exchange rates in the current fourth quarter.
Kraft shares rose to $35 in after-hours trade from their close on the New York Stock Exchange at $34.64.
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