Nov. 4 (Bloomberg) -- Kraft Foods Inc., the maker of Oreo cookies and shredded cheese, lowered its annual sales forecast and said it will remain disciplined in pursuing an acquisition of U.K. confectioner Cadbury Plc.

Kraft, which yesterday reiterated its interest in the maker of Creme Eggs, said a purchase would have to add to cash earnings in its second year and allow the company to maintain its dividend. The Northfield, Illinois-based company has less than a week to make a formal offer for Cadbury, which has called the proposal a bid from a “low-growth” conglomerate.

“With or without Cadbury, Kraft Foods is well- positioned,” Chairman and Chief Executive Officer Irene Rosenfeld said on a conference call.

Kraft said organic net revenue, which excludes acquisitions, divestitures and currency effects, will rise 2 percent in 2009, down from a previous 3 percent growth forecast. Lower-than-expected list prices and weakening European economies contributed to the lower sales projection, Kraft said.

The company also raised its annual profit forecast. Earnings per share will be at least $1.97 in 2009, up from a previous prediction of at least $1.93, Kraft said. The company said the outlook includes further marketing investments and costs related to a possible takeover of London-based Cadbury.

Kraft declined 10 cents to $27.54 yesterday on the New York Stock Exchange before the earnings announcement. The shares fell further in after-hours trading. Cadbury lost 4 pence to 777 pence in London yesterday. The stock is trading 5.9 percent above the value of Kraft’s offer, currently worth 734 pence, or 10 billion pounds ($16 billion).

Offer Deadline

The U.S. company proposed a cash-and-stock takeover on Aug. 28. A purchase would add Cadbury’s Dairy Milk chocolate to Kraft products including Philadelphia cream cheese and Kool-Aid.

U.K. regulators have given Kraft until Nov. 9 to make a formal offer or stop its pursuit for six months.

“We remain interested but will maintain a disciplined approach,” Rosenfeld said in a statement.

Third-quarter profit excluding some items was 55 cents a share, compared with 34 cents a year earlier, the maker of shredded cheese and DiGiorno frozen pizza said. The average of 12 analysts’ estimates compiled by Bloomberg was 48 cents.

“The fact that they tempered the sales outlook kind of offsets some of the optimism you’d normally have because they beat earnings expectations,” Matt Arnold, an analyst with Edward Jones & Co. in St. Louis, said in a telephone interview. He recommends holding the shares.

Net income fell to $824 million from $1.36 billion a year earlier, when the sale of its Post cereals unit bolstered earnings. Revenue dropped to $9.8 billion from $10.4 billion. Analysts estimated $10.2 billion.

To contact the reporter on this story: Duane D. Stanford in Atlanta at dstanford2@bloomberg.net.

Last Updated: November 4, 2009 00:01 EST