Market Overview

Packaged Foods Broadly Lower On Weak Results From Kraft, Kellogg

Packaged foods shares were broadly off Thursday after two major players posted sharp second-quarter profit declines.

Kellogg (NYSE: K) profits sank 16 percent on slowing cereal sales, while Kraft Foods' (NASDAQ: KRFT) revenue was nearly flat and its weak earnings growth missed expectations.

"There's no question that economic and consumer trends are creating top-line growth challenges for the food and beverage industry," Kraft CEO Anthony Vernon said in a statement that accompanied its earnings report.

Kraft was down 4.2 percent to $54.82, while Kellogg dropped four percent to $61.16.

Tyson Foods (NYSE: TSN) fell two percent and former Kraft snack unit Mondelez International (NASDAQ: MDLZ) was off a more modest one percent.

Inventure Foods (NASDAQ: SNAK) sank 3.5 percent

Diamond Foods (NASDAQ: DMND) dropped 2.25 percent and Post Holdings (NYSE: POST) settled down 1.25 percent.

Posted-In: Earnings News Hot Intraday Update

 

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