Kraft Foods 1Q profit rises 10 percent

[May 05, 2009]  NORTHFIELD (AP) -- Kraft Foods says its first-quarter profit rose 10 percent even as sales dropped as consumers pulled back on their spending.

The maker of Velveeta, Oreo cookies and Maxwell House coffee said Tuesday it earned $660 million, or 45 cents per share in the three-month period ending in March. That compares to earnings of $599 million, or 39 cents per share, a year earlier.

The Northfield, Ill.-based company says revenue fell 6.5 percent to $9.4 billion from $10.05 billion.

The earnings beat analyst predictions for a profit of 40 cents a share. But revenue fell short of analysts' expectation for $9.67 billion.

[Associated Press]

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