Altria Group Inc (MO)

[EZ2]

KFT ~~ Kraft Foods Outlines 3-Year Growth Plan
Tuesday February 20, 8:39 am ET
Kraft Foods Details 3-Year Growth Plan, Offers 2007 Earnings Guidance Below Street Estimates

NORTHFIELD, Ill. (AP) -- Food maker Kraft Foods Inc. on Tuesday said it plans to focus on growth in 2007 by changing its structure and product categories and cutting costs as part of a three-year plan.
The maker of namesake cheese and products such as Oscar Mayer meats said it expects revenue to grow 3 percent to 4 percent organically in 2007 and invest that growth, plus savings from restructuring -- about $300 million to $400 million -- in quality improvements, marketing, research and development and "capability-building."

The company said it expects earnings between $1.50 and $1.55 in 2007, or earnings between $1.75 and $1.80 excluding 25 cents of restructuring costs.

Analysts are looking for earnings per share of $1.92, according to a Thomson Financial poll.

In 2008, Kraft sees 3 percent to 4 percent revenue growth, with operating income exceeding revenue growth. The company said it will invest part of that growth back into the business including marketing spending, with a long-term target of 8 percent to 9 percent net revenue.

The company said in a statement it will "hit our stride," in 2009, with 4 percent organic net revenue growth and 7 percent to 9 percent earnings-per-share growth.