DEERFIELD, Ill. (AP) _ Mondelez, the company behind Oreo and Chips Ahoy cookies, said its profit in the first quarter nearly doubled as it raised prices for its products and cut costs.
Shares of Mondelez International Inc. rose $1.91, or 5.2 percent, to $38.71 in afternoon trading Wednesday.
The company said it raised prices due to higher costs to make products. Its overall costs, however, fell 15 percent to $1.9 billion. Based in Deerfield, Illinois, Mondelez makes Trident gum, Halls cough drops and Cadbury chocolate.
It reported first-quarter net income of $324 million, or 19 cents per share, compared with $163 million, or 9 cents per share, a year ago. Earnings, adjusted for one-time gains and costs, came to 41 cents per share, exceeding Wall Street expectations. The average analyst estimate, according to Zacks Investment Research, was for earnings of 37 cents per share.
Revenue fell 10.2 percent to $7.76 billion in the period, which missed Street forecasts. Analysts surveyed by Zacks expected $7.77 billion. Organic net revenue, which excludes the impact of acquisitions and currency, rose 3.8 percent, including growth of 10.8 percent in emerging markets.
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