Kraft lifts outlook as profit rises 4.2%

LONDON (MarketWatch)
Kraft Foods Inc. on Thursday lifted its outlook for the year as it reported a 4.2% rise in second-quarter profit to $976 million, or 55 cents a share, from $937 million, or 53 cents a share, a year earlier.
Revenue grew 13% to $13.88 billion and operating earnings per share in the quarter were 62 cents. Analysts had been expecting operating earnings of 58 cents a share on sales of $13.08 billion.
The group said organic revenue grew 7.1% and was up in all geographic regions as it implemented price increases.
 Kraft lifted its outlook for organic net revenue growth for the year to at least 5% from at least 4% and also raised its operating earnings forecast to at least $2.25 a share from at least $2.20 a share.
Analysts had been expecting operating earnings for the year of $2.23 a share.
The earnings announcement came as Kraft said it will break the company into two units.