Mondelez International reported first quarter earnings rose 9 percent,
to 34 cents per share, thanks in part to favorable tax rates.
Sales excluding the effect of currency and divestitures rose 3.8 percent, to $8.9 billion, for the quarter ended March 31.
"Our first quarter results were in line with the expectations we outlined earlier this year as we work through some near-term headwinds," Mondelez CEO Irene Rosenfeld said in a statement. "Although we're not satisfied that our top-line growth remained below our long-term target, our results show that we've built solid underlying momentum."
Rosenfeld has a stated long-term goal of raising sales 5 to 7 percent, excluding the impact of acquisitions, divestitures and currency. Lower coffee commodity prices hurt the company during the first quarter, impacting company sales by 1.3 percent.
The Deerfield-based package food giant was known as Kraft Foods until October, when it spun off its North American grocery business including brands Philadelphia, Kraft, Maxwell House and Planters.
Following a disclosure last month that activist investor Nelson Peltz had been buying up shares of PepsiCo and Mondelez, both companies have been the subject of merger rumors. Peltz is known for agitating with companies to spin-off or divest large chunks of its business to facilitate mergers.
Mondelez raised full-year earnings guidance three cents, to $1.55 to $1.60. The company will hold a call with investors at 4 p.m. CST.
Shares rose 1 percent to $31.41 in after-hours trading.
(c)2013 the Chicago Tribune
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