kraft foods group inc (KRFT) Key Developments
Kraft Foods Group Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 28, 2015
Apr 28 15
Kraft Foods Group Inc. reported unaudited consolidated earnings results for the first quarter ended March 28, 2015. For the quarter, the company reported net revenues of $4,352 million, operating income of $740 million, earnings before income taxes of $633 million and net earnings of $429 million or $0.72 per diluted share compared to the net revenues of $4,362 million, operating income of $904 million, earnings before income taxes of $788 million and net earnings of $513 million or $0.85 per diluted share for the same period year ago. Operating cash flow was $334 million compared to $251 million a year ago. Capital expenditures were $139 million compared to $76 million a year ago. Free cash flow was $195 million compared to $175 million a year ago. Results also included $38 million or $0.04 per diluted share in spending on cost savings initiatives, $17 million or $0.02 per diluted share in costs related to the proposed merger with H.J. Heinz Holding Corporation and $2 million in unrealized gains from hedging activities. Excluding the impact of these factors in both years, operating income grew at a mid-single-digit rate and EPS grew at a high single-digit rate. This was primarily driven by a planned reduction in advertising and consumer spending as well as lower overhead costs. EPS growth was further enhanced by lower net interest expense and average shares outstanding versus the prior year quarter.
Kraft Foods Group, Inc. to Report Q1, 2015 Results on Apr 28, 2015
Apr 9 15
Kraft Foods Group, Inc. announced that they will report Q1, 2015 results at 3:05 PM, Central Standard Time on Apr 28, 2015
The U.S. Commodity Futures Trading Commission Files Civil Enforcement Complaint in the U.S. District Court Against Kraft Foods Group, Inc. and Mondelez Global LLC
Apr 3 15
The U.S. Commodity Futures Trading Commission announced the filing of a civil enforcement Complaint in the U.S. District Court for the Northern District of Illinois against Kraft Foods Group, Inc. and Mondelez Global LLC, headquartered in Northfield and Deerfield, Illinois, respectively, for manipulation and attempted manipulation of the prices of cash wheat and wheat futures. The Complaint also alleges that Kraft and Mondelez violated speculative position limits by holding wheat futures positions in excess of speculative position limits established by the CFTC and the Chicago Board of Trade (CBOT) without a valid hedge exemption or a bona fide hedging need, and engaged in numerous noncompetitive trades in CBOT wheat. According to the CFTC Complaint, in response to high cash wheat prices in late Summer 2011, Kraft and Mondelez developed, approved, and executed in early December 2011 a strategy to buy $90 million of December 2011 wheat futures, which amounted to a six-month supply of wheat. The CFTC Complaint alleges that Kraft and Mondelez never intended to take delivery of this wheat and instead executed this strategy expecting that the market would react to their enormous long position by lowering cash wheat prices and strengthening the spread between December 2011 wheat and March 2012 wheat futures. Those price shifts did occur and, according to the CFTC Complaint, Kraft and Mondelez earned over $5.4 million in profits. The CFTC Complaint also alleges that on five dates in early December 2011, Kraft and Mondelez held long positions in December 2011 wheat that exceeded the CBOT™s 600-contract speculative spot month position limit by as much as 2,110 contracts without having a valid hedge exemption in place or a bona fide need for that quantity of wheat. Finally, the CFTC Complaint alleges that beginning in or about 2003 and continuing through January 2014, prior to each of the five annual delivery periods for CBOT wheat, Kraft and Mondelez conducted off-exchange futures transactions between two separate corporate trading accounts that did not comply with exchange rules for noncompetitive, off-exchange futures trades. In its continuing litigation against Kraft and Mondelez, the CFTC seeks a permanent injunction from future violations of federal commodities laws, disgorgement, and civil monetary penalties.
Mondelez International Reportedly Considers Selling Philadelphia Cream Cheese Brand
Mar 30 15
Mondelez International, Inc. (NasdaqGS:MDLZ) is reportedly considering selling its Philadelphia cream cheese brand at a price tag of around $3 billion. Kraft Heinz Co., merged company between Kraft Foods Group, Inc. (NasdaqGS:KRFT) and H. J. Heinz Company looks like the mostly likely buyer. Mondelez must offer the business to Kraft first, although it doesn't have to accept.
Kraft Foods Group, Inc. Declares Special Dividend for the Year 2014
Mar 25 15
Kraft Foods Group, Inc. declared special dividend of approximately $10 billion will be funded by an equity contribution by Berkshire Hathaway and 3G Capital. The special dividend represents 27% of Kraft's closing price as of March 24, 2015.