Kraft 2003 Annual Report Download - page 40

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Kraft Foods Inc. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking and Cautionary Statements
The Company and its representatives may from time to time make
written or oral forward-looking statements, including statements
contained in the Company’s filings with the Securities and Exchange
Commission (“SEC”) and in its reports to shareholders. One can
identify these forward-looking statements by use of words such as
“strategy,” “expects,” “plans,” “anticipates,” “believes,” “will,”
“continues,” “estimates,” “intends,” “projects,” “goals,” “targets” and
other words of similar meaning. One can also identify them by the
fact that they do not relate strictly to historical or current facts. These
statements are based on our assumptions and estimates and are
subject to risks and uncertainties. In connection with the “safe
harbor” provisions of the Private Securities Litigation Reform Act of
1995, the Company is hereby identifying important factors that could
cause actual results and outcomes to differ materially from those
contained in any forward-looking statement made by or on behalf of
the Company; any such statement is qualified by reference to the
following cautionary statements.
Each of the Company’s segments is subject to intense competition,
changes in consumer preferences and demand for its products, the
effects of changing prices for its raw materials and local economic
and market conditions. Their results are dependent upon their
continued ability to promote brand equity successfully, to anticipate
and respond to new consumer trends, to develop new products and
markets, to broaden brand portfolios, to compete effectively with
lower priced products in a consolidating environment at the retail
and manufacturing levels and to improve productivity. The
Company’s results are also dependent on its ability to consummate
and successfully integrate acquisitions and to realize the cost
savings and improved asset utilization contemplated by its
restructuring program. In addition, the Company is subject to the
effects of foreign economies, currency movements, fluctuations in
levels of customer inventories and credit and other business risks
related to its customers operating in a challenging economic and
competitive environment. The Company’s results are affected by its
access to credit markets, borrowing costs and credit ratings, which
may in turn be influenced by the credit ratings of Altria Group, Inc.
The Company’s benefit expense is subject to the investment
performance of pension plan assets, interest rates and cost
increases for medical benefits offered to employees and retirees.
The food industry continues to be subject to recalls if products
become adulterated or misbranded, liability if product consumption
causes injury, ingredient disclosure and labeling laws and regulations
and the possibility that consumers could lose confidence in the
safety and quality of certain food products. The food industry is also
subject to consumer concerns regarding genetically modified
organisms and the health implications of obesity and trans-fatty
acids. Developments in any of these areas, which are more fully
described elsewhere in this document and which descriptions are
incorporated into this section by reference, could cause the
Company’s results to differ materially from results that have been or
may be projected by or on behalf of the Company. The Company
cautions that the foregoing list of important factors is not exclusive.
Any forward-looking statements are made as of the date of the
document in which they appear. The Company does not undertake
to update any forward-looking statement that may be made from
time to time by or on behalf of the Company.