On Monday, Kraft Foods (NYSE:KFT) released Q3 earnings for the period ended Sept. 30.

  • For the full story, read the Kraft earnings take.
  • While Kraft grew net profits by 11%, the 2.3% revenue growth was not in line with the company's goals. The company is focusing on a number of growth initiatives involving convenience and healthier alternatives.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$8,240

$8,243

$8,057

2.3%

Net Profit

--

$748

$674

11%

EPS

$0.45

$0.45

$0.40

12.5%

Diluted Shares

--

1,648

1,689

(2.4%)

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

36.39%

35.45%

0.94

Operating Margin

16.46%

14.25%

2.21

Net Margin

9.07%

8.37%

0.70

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$655

$235

178.7%

Accounts Rec.

$3,573

$3,335

7.1%

Inventory

$3,857

$3,799

1.5%

Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$2,376

$2,159

10.1%

Long-Term Debt

$7,081

$9,723

(27.2%)

Learn the ways of the balance sheet.

Cash Flow Highlights

Kraft must be busy snacking, because it forgot to include a cash flow statement.

Find out why Fools always follow the money.

Related companies:

  • ConAgra Foods (NYSE:CAG)
  • Kellogg (NYSE:K)
  • Sara Lee (NYSE:SLE)

Related Foolishness:

Kraft Foods is a Motley Fool Income Investor recommendation. To find out why, try a free 30-day trial of the newsletter. Sara Lee used to be an Income Investor recommendation.

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