Kraft (KFT) Can't Deliver On Q3 Top Line As It Prepares for Formal Cadbury Bid

November 3, 2009 5:54 PM EST

The world's second largest food maker, Kraft (NYSE: KFT) reported a rise in third quarter EPS from continuing operations but a decline in sales.

The company reported earnings per share for the third quarter of 55 cents per share, on revenue of $9.8 million. Analysts estimated earnings per share of 48 cents a share for the quarter and $10.32 billion in revenue.

These profit numbers are well off the $1.36 billion or 91 cents a share in the same quarter last year, when the company's results included 57 cents per share in discounted operations. Last year's earnings per share from continuing operations was 34 cents. Revenues fell 5.7 percent from last year.

The company is less than a week away from making a formal bid for the British chocolate maker, Cadbury (NYSE: CBY). Kraft has until November 9 to a make its bid for Cadbury. Kraft did approach Cadbury with a bid in September that was worth a reported $16.7 billion. This bid was rejected by the board at Cadbury.

"We continue to build our operating and financial momentum despite the difficult consumer environment," said Irene Rosenfeld, Chairman and CEO. "Our volume/mix, profit margin and cash flow trends are strengthening as we successfully execute our growth plan."

Kraft shares are down in aftermarket trading 3.23 percent to $26.68 following the third-quarter report.

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