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KRAFT FOODS
Profit falls 40% amid slower sales
Kraft Foods Inc. said Tuesday that slower sales, lower retail food prices and the comparison with a gain a year ago helped cut its third-quarter profit 40%, but the company raised its forecast for the year.
The Northfield, Ill., company said it remained interested in a possible offer for British candy company Cadbury but did not disclose a time frame or price.
Kraft, the nation's largest food maker, earned $824 million, or 55 cents a share, for the quarter ended Sept. 30, compared with $1.36 billion, or 91 cents, a year earlier, when the results included the Post Cereal business that it has since sold.
Revenue fell nearly 6% to $9.8 billion, hurt by the stronger dollar.
Analysts polled by Thomson Reuters expected the company to earn 48 cents a share on revenue of $10.32 billion. Analyst expectations typically exclude one-time items.
Kraft increased its profit forecast for the full year from $1.93 to $1.97 a share, given its performance thus far and a lower tax rate. Analysts expect $1.97 a share for the year.
Kraft shares declined 84 cents, or 3.1%, to $26.70.
HEALTH NET
Health insurer tops expectations
Regional health insurer Health Net Inc. reported quarterly earnings that beat expectations, helped by strong sales in the Western U.S. and lower administrative costs.
The Los Angeles company posted a third-quarter net loss of $66 million, or 64 cents a share, contrasted with net income of $18.5 million, or 17 cents, a year earlier, largely because of charges related to the pending sale of its Northeast division to UnitedHealth Group Inc.
Excluding special items, Health Net reported earnings of $69.6 million, or 67 cents a share.
Analysts on average had expected earnings excluding one-time items of 61 cents a share, according to Thomson Reuters.
Revenue rose 3.9% to about $4 billion, helped by an increase in health plan services premium revenue, as well as higher revenue from government contracts.
Total health plan enrollment fell 3.8% from a year earlier to about 3.6 million members.
Health Net narrowed its forecast range for full-year earnings excluding special items to $2.25 to $2.30 a share, taking 5 cents off the top end of its previously forecast range.
Health Net shares rose 86 cents, or 5.7%, to $16.09.
TENET HEALTHCARE
Profit falls 40% amid slower sales
Kraft Foods Inc. said Tuesday that slower sales, lower retail food prices and the comparison with a gain a year ago helped cut its third-quarter profit 40%, but the company raised its forecast for the year.
The Northfield, Ill., company said it remained interested in a possible offer for British candy company Cadbury but did not disclose a time frame or price.
Kraft, the nation's largest food maker, earned $824 million, or 55 cents a share, for the quarter ended Sept. 30, compared with $1.36 billion, or 91 cents, a year earlier, when the results included the Post Cereal business that it has since sold.
Revenue fell nearly 6% to $9.8 billion, hurt by the stronger dollar.
Analysts polled by Thomson Reuters expected the company to earn 48 cents a share on revenue of $10.32 billion. Analyst expectations typically exclude one-time items.
Kraft increased its profit forecast for the full year from $1.93 to $1.97 a share, given its performance thus far and a lower tax rate. Analysts expect $1.97 a share for the year.
Kraft shares declined 84 cents, or 3.1%, to $26.70.
HEALTH NET
Health insurer tops expectations
Regional health insurer Health Net Inc. reported quarterly earnings that beat expectations, helped by strong sales in the Western U.S. and lower administrative costs.
The Los Angeles company posted a third-quarter net loss of $66 million, or 64 cents a share, contrasted with net income of $18.5 million, or 17 cents, a year earlier, largely because of charges related to the pending sale of its Northeast division to UnitedHealth Group Inc.
Excluding special items, Health Net reported earnings of $69.6 million, or 67 cents a share.
Analysts on average had expected earnings excluding one-time items of 61 cents a share, according to Thomson Reuters.
Revenue rose 3.9% to about $4 billion, helped by an increase in health plan services premium revenue, as well as higher revenue from government contracts.
Total health plan enrollment fell 3.8% from a year earlier to about 3.6 million members.
Health Net narrowed its forecast range for full-year earnings excluding special items to $2.25 to $2.30 a share, taking 5 cents off the top end of its previously forecast range.
Health Net shares rose 86 cents, or 5.7%, to $16.09.
TENET HEALTHCARE
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