Kraft CEO Gives Sunny Forecast
Kraft Foods Chief Executive Roger Deromedi says the company's "sustainable growth plan" is working and he's sticking with it. Speaking with analysts last month, Deromedi increased the company's earlier profit projection of $1.73 to $1.78 per share, and predicted profit margins would improve in 2006.
Deromedi launched a turnaround plan in early 2004 to halt the sliding in Kraft's profits. He says sales are now growing at a good pace, and the company is projecting sales growth of three to 4% this year.
"The most important thing we need to be doing is getting the top-line momentum restarted in this business. I feel very good about where we are," Deromedi said.
Kraft also announced that it will increase efforts to defend against patent infringements on heavily branded products, and is hiring more patent attorneys to crack down on copycats.