Archive for November, 2011
Kraft Foods has been talking about separating into two different companies recently, but was still able to maintain a 22 percent profit during the third quarter. The increase came from higher prices and favorable tax rate and foreign exchange rates.
An article by Martinne Geller reports the net income rose to $922 million from $754 million one year ago.
According to the Associated Press, Kraft’s revenue rose from $11.8 billion to $13.23 billion during a time when most businesses are losing money. Kraft has been able to avoid problems of higher costs of ingredients by expanding in new markets, such as China.
Chief Financial Officer Dave Brearton addressed the topic of increasing prices in 2012 by explaining the anticipation of increased costs next year. He also suggested that costs will increase during the fourth quarter.
Regardless of the recent profit, Kraft is still going through the process of splitting into two separate entities. One of the new companies would maintain the “Kraft Foods” name, while the other would be decided by shareholders and employees.
Either way, CEO Irene Rosenfeld predicts the name will be “delicious.”
Perhaps that should be the name of the new organization instead of a way to describe it.
Rosenfeld also hinted at a possible relocation of the company’s corporate headquarters from Glenview to Chicago as a result of the split.
Officials from Kraft tried to control the situation by stating that both companies would be located in Chicago, but nothing had been announced officially. However, Kraft was the second biggest payer of property tax in Glenview, so losing just one of the properties would be a huge hit on the village, schools, park district, library and other taxing bodies, according to JournalOnline.
Maybe the recent profit from the third quarter will convince Kraft officials that a split is not necessary, and the headquarters can remain in Glenview. If not, then it will be interesting to see what will become of the separate parts of Kraft Foods, and the Glenview area.
ekdarkseid 