Kraft Foods Inc.'s first-quarter net income dropped sharply on costs related to its acquisition of candy maker Cadbury, but its adjusted profit rose and beat expectations.
The company, based in Northfield Ill., earned $799 million, or 45 cents per share, for the quarter. That's down from $1.89 billion, or $1.16 per share, a year earlier.
Excluding one-time items, Kraft earned 52 cents per share, versus 49 cents per share last year.
Kraft's revenue rose 11 percent to $12.57 billion, helped in part by higher prices.
Kraft, like most other food makers, has increased prices to offset higher commodity costs. The company says it expects those pressures to continue but has found the right balance on input costs and the prices it charges customers.
The results beat analysts' average forecast for adjusted earnings of 46 cents per share on revenue of $12.31 billion.
"We're off to a stronger-than-anticipated start to the year as our teams around the world execute our growth strategy," Irene Rosenfeld, chairman and CEO of Kraft said in a statement.
Kraft's shares first rose in after-hours trading Thursday and then fell 7 cents. Before the company reported its earnings, the shares ended regular trading down 46 cents, or 1.4 percent, at $33.39.
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