Tags: Mondelez | earnings | food | Oreo

Mondelez's Cost Cuts Fuel Profit Gains Amid Sluggish Demand

Wednesday, 05 Nov 2014 11:15 AM

Mondelez International Inc., the maker of snacks such as Oreo cookies and Ritz crackers, topped third-quarter profit estimates and raised its earnings forecast, lifted by cost-cutting efforts.

Excluding some items, profit amounted to 50 cents a share last quarter, the Deerfield, Illinois-based company said today in a statement. Analysts had estimated 39 cents on average, according to data compiled by Bloomberg. The shares jumped as much as 4.2 percent after the results were released.

Facing sluggish snack demand and declining revenue, the company has been working to boost productivity and reduce expenses. Activist investor Nelson Peltz has added to pressure for cutbacks at the company. Mondelez named Peltz to its board in January after Peltz’s Trian Fund Management LP abandoned a proposal for Mondelez to merge with PepsiCo Inc. to spur growth.

“With global retail and consumer demand expected to remain soft in the near term, we’re sharply focused on the execution of our productivity and cost-reduction programs to drive earnings growth,” Irene Rosenfeld, chairman and chief executive officer, said in the statement.

Mondelez’s stock climbed as high as $36.50 in New York, the biggest intraday gain since May. Through yesterday’s close, the stock had declined 0.8 percent.

Profit Forecast

The company forecast earnings of $1.82 to $1.87 a share for the year, up from a previous projection of no more than $1.69. Analysts had estimated $1.66.

While Mondelez’s results exceeded predictions, profit still fell from a year earlier. Net income dropped 11 percent to $899 million, or 53 cents a share, from $1.01 billion, or 56 cents, in the third quarter of 2013. Net revenue fell 1.6 percent to $8.34 billion.

European revenue fell 2.4 percent last quarter, hurt by some retailers balking at price increases. Asia Pacific rose 1.3 percent, while Latin America climbed almost 19 percent, helped by higher prices and improving volume in Brazil.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Companies
Mondelez International Inc., the maker of snacks such as Oreo cookies and Ritz crackers, topped third-quarter profit estimates and raised its earnings forecast, lifted by cost-cutting efforts.
Mondelez, earnings, food, Oreo
308
2014-15-05
Wednesday, 05 Nov 2014 11:15 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved