NEW YORK (AP) — Shares of Mondelez International Inc. dropped in after-hours trading Wednesday after the maker Oreo, Cadbury and Nabisco said sales didn't grow as strongly as Wall Street expected.
After splitting from Kraft Foods last year, the company also says it expects 2013 revenue growth to be in the low range of its long-term growth target of 5 to 7 percent. But it raised the range of its guidance for operating income by 2 cents to between $1.52 and $1.57 per share to reflect more favorable currency exchange rates.
Kraft and Mondelez went separate ways so the companies could each focus on a more targeted portfolio of products. Kraft took North American grocery brands like Oscar Mayer, Jell-O and Maxwell House and Mondelez took international snack brands that were expected to help it grow at a faster rate.
But in the latest quarter, Mondelez said revenue fell 2 percent to $9.5 billion. Organic revenue, which excludes the impact of acquisitions, divestitures, currency translations and integration costs, rose 4 percent, which was shy of its own long-term forecasts.
Although cookies such as Oreo are performing strongly, CEO Irene Rosenfeld said in a conference call with analysts that chewing gum sales continued to weigh on results.
Continue reading this story on the...