Kraft profit up 11%; sales fall short of forecasts

Kraft Foods Inc. said third-quarter profit increased 11%, but its shares fell as sales rose less than analysts anticipated.

Net income was $748 million, or 45 cents, compared with $674 million, or 40 cents, a year earlier, the Altria Group Inc. unit said. Sales increased 2.3% to $8.24 billion, trailing the average $8.26-billion estimate of analysts.

The company boosted its 2006 earnings outlook to a range of $1.86 to $1.89 a share, lagging behind the $1.93 average estimate of analysts.

Shares of Northfield, Ill.-based Kraft fell $1.80 to $34.75 in extended trading after the report. Earlier, they had closed up 81 cents at $36.30.