When asked about any future potential acquisitions Rosenfeld denied any plans for acquisitions in the near future. Instead share purchases and dividends would be considered when ratios further stabilize.
Kraft did have a strong free cash flow year and it allowed them to further deleverage their balance sheet ahead of schedule. They expect their 2011 interest expense to decline by about $100 million.
Kraft’s revenues were up, but like many food companies their margins were squeezed by higher costs of commodities.
The revenues from Cadbury turned out lower than they forecasted. Organic revenues rose 2.2% and net organic revenues declined by
Pricing is expected to be stronger this year.
Latin America and Asia produced some of the stronger gains in revenue at 20% and 30% respectively.
They expect earnings to increase between 11-13% this year, which is higher than their initial long term forecast of between 9-11%.