Kraft Foods Inc. to report 4th-qtr results Tuesday

Earnings Preview: Kraft Foods Inc.

PORTLAND, Ore. — Kraft Foods Inc., the nation’s largest food maker, reports its fourth-quarter results before the market opens on Tuesday.

WHAT TO WATCH FOR: Kraft will provide an update on its core business and strategy now that the focus isn’t entirely on its acquisition of British candy maker Cadbury PLC.

The maker of products such as Velveeta cheese and Oreo cookies has cut its product lines during the recession to focus on its most profitable products. And in January, saying it was making strong operating gains, the company increased its full-year profit outlook for the second time in two months.

Because Kraft is reporting its results at a major food industry meeting this quarter, it may use a broader brush than usual to paint a picture for investors.

This is the first earnings report since the company won approval for its bid from of Cadbury shareholders this month. As a result — the company is expected to provide further detail on the process of combining the two companies and its plans for building the shared business.

WHY IT MATTERS: Kraft is the largest U.S. food maker and has expanded its global reach with Cadbury, so its strategy can set the tone in the marketplace.

WHAT’S EXPECTED: Analysts polled by Thomson Reuters on average expect the company to earn 45 cents per share for the quarter on revenue of $11.1 billion.

LAST YEAR’S QUARTER: Kraft reported net income of $163 million, or 11 cents per share. Excluding several one-time items, it earned 43 cents per share.