020910 Kraft Foods Backs 2002 Earnings View

Northfield, IL (Reuters) - Kraft Foods Inc. , North America's No. 1 food company, said it is on track to meet its prior earnings guidance for 2002.

Kraft, which is majority owned by tobacco company Philip Morris Cos. Inc., backed its earlier earnings target of $2 to $2.05 per diluted share this year, excluding items. The earnings target represents an increase of 14% to 16% over its earnings per share in 2001, the company said.

Kraft also said its integration of Nabisco is on track. The company, which acquired Nabisco in late 2002, said it expects cost savings and other benefits will meet its target of $300 million in 2002, a number it expects will increase to $600 million in annual savings thereafter. Both the earnings and cost savings forecasts are consistent with Kraft's earlier outlook on July 17.

Kraft, whose brands include Kraft cheese, Nabisco cookies, Oscar Mayer meats and Post cereals, expects revenue from new products to exceed $1.3 billion this year.

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