Kraft Foods

Kraft Foods

North America business into a separate shopping baskets.
The surprise move, announced Thursday, came after the Kraft last year became the second largest food company in the world with the takeover of Cadbury PLC.

Now 18 months at Cadbury, Kraft says is complete with two classes of signals that can be better managed separately and also to attract investors who either want to bet on global growth expectations of snacks or slower but steady shopping businesses in North America.

"We have built two strong, but separate, portfolios," said Irene Rosenfeld Chief Executive.

The proposed Global snack activities will include Kraft and European enterprises and developing markets units, as well as snacks chocolate businesses in North America. With around 32 billion dollars in the estimated revenue, it will house of Oreo cookies, migrations and Trident gum, all of which have greater prospects for growth in emerging markets and sells more consumers on the road.

North America, with shopping activity like Kraft cheeses, Maxwell House coffee and snack, Jell-O does not have the potential for growth, but comes with room for stronger and more robust sales. It has an estimated 16 billion dollars in revenue.

The company expects the Division before the end of the year 2012 through a tax-free spin-off of North American shopping activity to shareholders. Kraft shares rose by 7.3% to $ 36.80 to recent premarket trading.

Among other companies over the last few months have announced plan to split is Fortune Brands Inc. (FO), Sara Lee Corp. (company), Motorola Inc. and some energy companies.

Higher commodity costs have compound results of food leaders recently, such as their ability to pass along the cost to consumers is limited to low consumer confidence and high unemployment.

For the second quarter, reported a profit of 976 million Kraft dollars, or 55 cents a share, up from 937 million dollars, or 53 cents a share, a year earlier. Operating profits rose to 62 cents, driven by currency and operating profits, while net revenue climbed 13% to 13,9 billion dollars, helped by price rises. Analysts polled by Thomson Reuters for 58 minutes and $ 13.2 billion, respectively.

Gross margin of deviation 35.1% from 58.3% on higher commodity costs.

Kraft also raised guidance for the year, operating profits of at least projecting $ 2.20 to $ 2.25 and organic net revenue growth of at least 4% to 5%. The previous view was for a minimum of $ 2.20 fees and organic net revenue growth of at least 4% excluding the impact of accounting changes calendar.

"In spite of increasing costs and a volatile economic environment, manage aggressive cost coupled with strong revenue growth in our confidence that we can deliver superior performance for the year," Chief Financial Officer David Brearton said.