Kraft 2003 Annual Report Download - page 5
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Please find page 5 of the 2003 Kraft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Ourresultsin2003didnotmeetthegrowthtargetswesetatthestartoftheyear.
Whilewearenotsatisfiedwithourperformance,wehavetakensignificantsteps
tocorrectourcourseandgetbackontrackforsustainablegrowth.
Kraftremainsastrongandprofitablefoodandbeverageindustryleader
withgreatglobalpotential.Inthisreport,weshareourplanforgrowth–how
weintendtobuildbrandvalue,transformourportfolio,expandourglobalscale,
reduceourcostsandassetbase,strengthenourorganization,anddosoina
responsiblewaytodeliverlong-termsustainablegrowth.
For2003,netrevenuesincreased4.3%.Volumewasup0.7%,or1.6%excluding
divestitures.Operatingincomedeclined1.7%,netearningsincreased2.4%
anddilutedearningspersharewereup2.6%to$2.01.Wegeneratedmorethan
$3billionindiscretionarycashflow–definedasnetcashprovidedfromoperating
activitieslesscapitalexpenditures–anincreaseof19.6%over2002.Andwe
raisedourquarterlydividend20%to$0.18percommonshare.
Acrossourbusinesses,volume,excludingdivestitures,andrevenueswereup
infiveofoursixsegments.However,operatingcompaniesincomeincreased
inonlythreesegments.
Weentered2003withgoodmomentum.But,astheyearunfolded,weencountered
anumberofsignificantchallenges,mostnotablytherisingcostofcommodities,
packagingandenergy,andpensionsandmedicalbenefits.Wetriedtorecover
thosecoststhroughhigherpricinginseveralcategories.However,asaresultof
thesehigherprices,alongwithseveralnew-productdisappointmentsandother
factors,ourconsumptionandsharesdeclined,particularlyincheese,coldcuts,
coffee,crackersandcookiesintheU.S.
FellowShareholders,
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