Kraft Foods announced it intends to spin-off to its shareholders its North American grocery business, Kraft Foods Group Inc., on Oct. 1, 2012, subject to board approval.
Beginning Oct. 2, 2012, Kraft Foods Group will begin to trade on the NASDAQ Global Select Market under the ticker symbol "KRFT."
Kraft Foods Inc. will change its name to Mondelez International, Inc. and change its ticker symbol to "MDLZ."
The current ticker symbol, "KFT," will be retired.
The company, which owns the Oscar Mayer brand, announced its intention to split the company last year. (See "Kraft Foods to split into separate snacks, grocery businesses by 2013" on Meatingplace, Aug. 4, 2011.)
Earnings
The announcement came as the company reported second quarter net income of $1.03 billion, or 58 cents per share, compared to $976 million, or 55 cents per share, a year earlier.
Second quarter revenue fell by 4.3 percent to $13.3 billion in part due to currency and accounting calendar changes.
Analysts polled by Thomson Reuters had most recently predicted earnings of 66 cents a share and revenue of $13.96 billion.
Power brands, new products and a favorable impact from carryover pricing actions drove solid organic net revenue and adjusted segment operating income growth in Kraft Foods North America.
"Our first half results are on-track with our previous annual guidance of organic net revenue growth of approximately 5 percent and operating EPS growth of at least 9 percent on a constant currency basis," said David Brearton, executive vice president and CFO.
"As we look forward, we're confident that we're launching two industry-leading companies, each with a great future."
Executive appointment
Kraft also announced that Tracey Belcourt will join the company as executive vice president, strategy, in September.
Belcourt, 45, will lead the strategy function and mergers and acquisition activities for the global snacks company, Mondelez International, Inc.
In this role, Belcourt will report to Chairman & CEO Irene Rosenfeld, with responsibility for evolving and implementing the company's growth strategy.
The company also announced the board members of the two new companies.
As previously announced, Irene Rosenfeld will be chairman and chief executive officer of the global snacks company, Mondelez International, Inc.
John Cahill will be executive chairman of the North American grocery company, Kraft Foods Group, Inc., and Tony Vernon, currently executive vice president and president, Kraft Foods North America, will be CEO.
Source: Argentine Beef Packers S.A.
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