Kraft Cuts Third-Quarter Estimate

Kraft Foods (KFT Quote) lowered its guidance for the third quarter but maintained its full-year outlook, and the company's shares were falling slightly on the news.

The company said that because of the timing of a number of items impacting the second half, it expects to post third-quarter earnings of 45 cents to 47 cents a share.

For 2003, Kraft expects volume growth of around 2%, earnings of $2 to $2.05 a share and discretionary cash flow growth of more than 10%.

Kraft also forecast more than $200 million in incremental marketing spending in its biscuits, coffee, cold cuts and cheese businesses in the second half of the year.

Analysts polled by Thomson First Call are looking for a profit of 49 cents a share in the third quarter and $2.02 a share for the full year.

Shares of Kraft were down 47 cents, or 1.6%, to $29.38.