Kraft ( KFT) reported higher second-quarter earnings Monday and raised its full-year guidance to reflect lower-than-expected restructuring charges and higher one-time gains.

The foodmaker posted earnings of $682 million, or 41 cents a share. A year earlier, net earnings were $472 million, or 28 cents a share, weighed down by a $297 million loss on the sale of discontinued operations. Year-ago earnings from continuing operations were $758 million, or 45 cents a share.

During the most recent quarter, Kraft recorded after-tax charges of $162 million, or 10 cents a share, related to its planned plant closures and streamlining efforts. Excluding those charges, Kraft's earnings of 51 cents a share beat Thomson First Call's mean analyst estimate of 48 cents.

Kraft's revenue rose 3.4% to $8.62 billion from $8.33 billion. Analysts, on average, expected a top line of $8.52 billion. The company said it was helped by a favorable product mix, increased advertising and continued cost savings.

The maker of Oreo cookies, Oscar Mayer luncheon meat and Maxwell House coffee has been in the midst of a three-year restructuring plan as its attempts to cost costs and revive its brands. In January, Kraft announced an expansion to its plan to close 20 additional plants and cut 8% of its workforce through 2008.

"Second-quarter results reflect further improvements in Kraft's business fundamentals," said newly installed CEO Irene Rosenfeld in a statement. "We're making good progress focusing and strengthening the portfolio, which will set the stage for accelerating our growth."

The company, which is majority owned by Altria Group ( MO), said it now sees 2006 earnings of $1.78 to $1.83 a share, up from its previous guidance of $1.55 to $1.60. The new outlook includes about 40 cents in restructuring and impairment charges, 7 cents in losses from the sale of its pet snacks business, and 37 cents in one-time gains. The company's old forecast included 50 cents in charges and a 24-cent gain.

Analysts predict earnings of 1.90 a share, excluding items, according to First Call.