Kraft profit up on retiree benefit gain, cost savings

13 Feb, 2014

NEW YORK: Kraft Foods Group Inc on Thursday reported a higher quarterly profit on lower costs and a large accounting gain related to retiree benefits.

The company's shares rose 2.1 percent in extended trading.

Kraft, whose stable of famous food brands includes Velveeta cheese, Jell-O desserts and Maxwell House coffee, said fourth-quarter net earnings rose to $931 million, or $1.54 per share, up from $90 million, or 15 cents per share, a year ago.

Earnings from the latest quarter included a $1.11 per share accounting gain due to higher discount rates and asset returns that benefited its pension and retiree medical plans.

Net revenue grew 2.3 percent to $4.6 billion with the company shipping more products.

Shares of Kraft, which closed at $53.61, climbed to $54.75 in after-hours trading.

Kraft, whose products also include Oscar Mayer lunch meats, Planters nuts and Capri Sun juices, lost its exposure to high-growth emerging markets after its 2012 split from Mondelez International Inc and has been working to increase sales of its stable of mature brands.

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