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Kraft Foods Inc (NASDAQ:KFT) predicts that 2013 organic revenue growth will continue to be in line with market growth, although it had to deal with a negative impact of 1 point because of product pruning. Productivity improvements along with overhead savings are predicted to drive 2013 EPS of approximately $2.60 on a GAAP basis. The outlook assumes interest expense of about $520 million and an effective tax rate of 35 percent. Additionally, the results for the year include the restructuring costs of approximately $240 million, or 26c per share, versus the expected ongoing costs of about $125 million, or 14c per share in a typical year. Free cash flow should be about 70 percent of GAAP net income lower than the long-term target of at least 85 percent because of an extra tax payment in 2013 of about $200 million. Kraft Foods Inc. intends to spin-off Kraft Foods Group, Inc., which is to hold Kraft Foods’ North American grocery business, at 5 p.m. EDT on Oct. 1, 2012. Kraft Foods Group is to trade on the NASDAQ stock exchange beneath the ticker symbol “KRFT.” After the spin-off, Kraft Foods Inc. is to be renamed Mondelz International, Inc. Mondelz International will trade on the NASDAQ stock exchange under the ticker symbol “MDLZ.”
Citigroup Inc. (NYSE:C): A key interest rate for over $500 trillion of securities globally are to be replaced by a benchmark subject to greater government control, according to 45 percent of people responding to a quarterly Bloomberg Global Poll. They claim that the London interbank offered rate, known as Libor, is to be supplanted by a more regulated model within five years, states Bloomberg.
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Ford Motor Company (NYSE:F) issued its third recall on the 2013 Ford Escape model because a defective, manually installed cup plug may cause coolant fires. According to The Detroit News, the SUV’s launch is quickly becoming tainted by the numerous possible safety issues Ford is discovering, ranging from brake interference, to faulty engine compartments to fuel lines, the popular 2013 model has definitely had to deal with negative press. Although the magnitude of Ford’s coolant fire recall is not nearly as influential as the recall in which gasoline was likely to leak in the engine, 7,600 owners will still have to bring their vehicles in for inspection. The automaker estimates that only 0.4 percent will actually need replacement plugs.
Micron Technology, Inc. (NASDAQ:MU): Elpida Memory Inc. lost a bid on Thursday to duck questions from bondholders positioning themselves to take action in the U.S. if they do not like the ultimate price on the Japanese chip maker’s proposed sale to Micron Technology Inc.. Judge Christopher Sontchi gave investors the power to question an Elpida executive regarding the company’s U.S. assets, which are shielded in a Chapter 15 case.
Vale SA (NYSE:VALE) sold $1.5 billion of dollar bonds that are due in 2042 on September 4 for a yield of 5.68 percent, which is the least the company had ever paid on similar-maturity debt, according to data that was compiled by Bloomberg. The sale snapped a one-month drought for Brazilian issuance.
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