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Kraft profit plummets 33% in first quarter

Kraft Foods Inc, the Chicago IL area-based branded food and beverage giant, announced that its first-quarter profit dropped 33% due to restructuring costs, an asset impairment charge, and higher marketing expenses.

Net income sunk to $560 million, or 33 cents a share, from $848 million, or 49 cents, in the year-ago period.

On average, Wall Street analysts had expected Kraft to report earnings of 43 cents per share, according to Reuters Research.

The company is involved in a major restructuring begun in January, when it announced that about 6,000 employees would be laid off and about 20 of its plants would close.

TAGS: Foodservice
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