Kraft Foods Expected To Deliver Strong 2011 Results
"We finished 2011 with strong business momentum in each of our geographies," said
Net revenue for full year 2011 is expected to have grown approximately 10 percent. Organic Net Revenue is expected to increase approximately 6.5 percent, compared to a previous outlook of at least 6 percent, driven by mid-single-digit organic growth in
Diluted earnings per share are expected to be at least
The company plans to release its full 2011 financial results, issue its outlook for 2012 and provide an update on its plan to create two independent companies on
A briefing will be held for investors on that day at the
2011 Estimated Net Revenue Growth
|
As Reported (GAAP) |
~10% |
|
|
|
|
Impact of Divestitures(a) |
~1 pp |
|
Impact of Acquisitions(b) |
~(1) pp |
|
Impact of Accounting Calendar Changes |
~(1) pp |
|
Impact of Currency |
~(2.5)pp |
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|
|
|
Organic Net Revenue[1] (Non-GAAP) |
~6.5% |
|
(a) |
Impact of divestitures includes Starbucks CPG business. |
|
(b) |
Impact of acquisitions reflects the incremental January 2011 operating results from our Cadbury acquisition. |
2011 Estimated Earnings Per Share
|
Diluted EPS (GAAP) |
At least $1.95 |
|
|
|
|
Integration Program Costs |
~$0.31 |
|
Spin-Off Transaction and Transition Costs© |
~$0.02 |
|
|
|
|
Operating EPS[1] (Non-GAAP) |
At least $2.28 |
|
© |
Spin-Off transaction and transition costs include transaction fees and other costs associated with the proposed creation of two independent companies. |
ABOUT
FORWARD-LOOKING STATEMENTS
This press release contains a number of forward-looking statements. Words, and variations of words such as "continue," "expect," "will," and similar expressions are intended to identify our forward-looking statements, including but not limited to, delivery of strong 2011 results; expected Net Revenues, Organic Net Revenue, Diluted EPS and Operating EPS; that 2011 results will place us among top-tier of peers; and on-track to launch two industry-leading companies in 2012. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in our forward-looking statements. Such factors include, but are not limited to, our failure to successfully separate the company, continued volatility of and increases in input costs, pricing actions, increased competition, weakness in economic conditions and tax law changes. Please also see our risk factors, as they may be amended from time to time, set forth in our filings with the
NON-GAAP FINANCIAL MEASURES
The company reports its financial results in accordance with accounting principles generally accepted in
The company's top-line measure is organic net revenues, which excludes the impacts of acquisitions, divestitures (including the Starbucks CPG business), currency and accounting calendar changes. The company uses organic net revenues and corresponding ratios as non-GAAP financial measures. Management believes this measure better reflects revenues on a going-forward basis and provides improved comparability of results because it excludes the volatility of currency, and the one-time impacts of acquisitions, divestitures and accounting calendar changes from net revenues.
The company uses Operating EPS, which is defined as diluted EPS attributable to
Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's results prepared in accordance with GAAP. In addition, the non-GAAP measures the company is using may differ from non-GAAP measures used by other companies. Because GAAP financial measures on a forward-looking basis are neither accessible nor deemed to be significantly different from the non-GAAP financial measures, and reconciling information is not available without unreasonable effort, with regard to the non-GAAP financial measures in the company's Outlook, the company has not provided that information.
[1] Please see discussion of Non-GAAP Financial Measures at the end of this press release.
[2] Acquisition-related costs include transaction advisory fees,
[3] Integration Program costs are defined as the costs associated with combining the
SOURCE
Media, Michael Mitchell, +1-847-646-4538, news@kraftfoods.com, or Investors, Christopher M. Jakubik, +1-847-646-5494, ir@kraftfoods.com
