Mondelez lifts profit forecast citing cost cutting
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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 ASSOCIATED PRESS