Mondelez lifts profit forecast citing cost cutting

SHARE Mondelez lifts profit forecast citing cost cutting

DEERFIELD — Oreo cookie maker Mondelez International raised its outlook for the year on Wednesday, citing the cost-cutting it’s doing to offset weak global sales.

The Deerfield, Illinois-based company, which also makes Cadbury chocolate and Trident gum, said revenue fell during the third quarter, dragged down by declines in saturated markets like the U.S. and Europe.

“We are choosing primarily to focus on what we can control, which is costs,” CEO Irene Rosenfeld. She noted that global consumer demand is expected to remain soft for the near term.

Mondelez said its organic revenue, which strips out the impact of acquisitions, divestitures and currency exchange rates, was up 2.7 percent. The company said the price hikes it implemented to cover rising ingredient costs hurt sales volumes, particularly in Europe where some retailers decided to stop carrying its products.

For the period ended Sept. 30, Mondelez International Inc. said it earned $899 million, or 53 cents per share. Excluding one-time items, it earned 50 cents per share, topping the 39 cents per share analysts expected, according to Zacks Investment Research.

Revenue declined to $8.34 billion and fell short of the $8.41 billion Wall Street expected.

Mondelez expects full-year adjusted earnings in the range of $1.67 to $1.72 per share, up from its previous forecast of $1.64 to $1.69 per share.

Shares of Mondelez rose almost 6 percent to $37.05.


The Latest
“Wouldn’t it be unbelievable for our city if you were to see two amazing facilities for these great sports teams built at once?” said Curt Bailey, president of Related Midwest, which oversees the vacant 62-acre site where the White Sox hope to build.
The critically acclaimed Chicago eatery helmed by Beverly Kim and Johhny Clark will be closing by the end of the month, but will re-emerge with a new concept at an undetermined future date.
Checkout lane at grocery store came to a halt as everyone waited for one customer to cover another’s shortfall.
Since returning from injury, Bedard has averaged 1.25 hits and 0.88 blocked shots per game, up from 0.64 hits and 0.33 blocked shots per game previously.
Kelce ends a career in which he became not only one of the great centers of his era who played a key role in the franchise’s lone Super Bowl championship but a beloved Philly personality and popular podcast host.