NORTHFIELD, Ill. - Kraft Foods Inc.'s second-quarter profit jumped more than 5 per cent despite a drop in sales as higher prices helped offset rising raw-materials costs and unfavourable currency exchange rates.
The food maker reported that it earned $1.03 billion, or 58 cents per share, for the quarter. That's up from $976 million, or 55 cents per share, last year.
Adjusting for one-time items, Kraft earned 68 cents per share versus 62 cents. That's below the 66 cents a share expected by Wall Street.
Revenue fell 4 per cent to $13.29 billion, also below expectations.
Kraft said it is standing by its previously issued forecast for its yearly profit.
The company is splitting its business into an international snacks business and North American grocery business. It expects to complete the spinoff on Oct. 1.