Mondelez 3rd-quarter net income falls 29 percent

Associated Press Modified: November 7, 2012 at 5:15 pm •  Published: November 7, 2012
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She said the issues should be "largely resolved by the end of the year."

Revenue from emerging markets fell 6 percent, hurt by the stronger dollar and the weakness in Brazil and Russia. That was offset by strong growth in China, India, and the Middle East and Africa.

In Europe, revenue fell due to the stronger dollar. Chocolate and coffee volume grew, with particular strength in the Milka and Cadbury Dairy Milk chocolate brands, but that was offset by lower coffee pricing.

Revenue rose 1.9 percent in North America, helped by strong performance of cookies and crackers such as Honey Maid, Ritz, Triscuit and Oreo.

Mondelez affirmed operating income guidance of $1.50 to $1.55 per share for the year. Analysts expect $1.44 per share, on average.

Before the market opened on Wednesday, the spun-off North American grocery business, which makes Oscar Mayer, Miracle Whip and Velveeta, and is now known as Kraft Foods Group Inc., said its net income rose 13 percent in the third quarter, helped by a mix of new products, increased advertising and productivity improvements.

Beginning in the fourth quarter, Mondelez said historical financial results for Kraft Foods Group will be reflected as discontinued operations.

Kraft announced in August 2011 that it would be splitting in two by the end of 2012 so both sides of the business could focus better on their priorities. It announced the new name in March and the split took effect Oct. 1.

In after-hours trading, Mondelez shares lost 25 cents to $26. The stock ended regular trading down 24 cents amid a broader market decline.