Kraft Foods’ Profit Falls on Price Cuts

Kraft Foods Inc.’s third-quarter profit fell 6.8%, the first decline in two years, after the company cut prices on products such as Oscar Mayer cold cuts and boosted marketing amid competition from lower-price brands.

Net income at the largest U.S. food company dropped to $810 million, or 47 cents a share, from $869 million, or 50 cents, a year earlier, Northfield, Ill.-based Kraft said. Sales rose 3.7% to $7.48 billion, helped by currency gains of about $213 million.

Analysts had expected Kraft to earn 46 cents a share.

Kraft shares rose 14 cents to $29.49 on the New York Stock Exchange.