Kraft Foods’ Net Income Falls on Increased Costs

Kraft Foods Inc.’s profit fell 28% in the fourth quarter, weighed down by restructuring and higher costs for cheese, coffee and nuts.

The maker of Oreo cookies and DiGiorno pizza is in the midst of a three-year restructuring in which it is selling off brands and cutting 3,000 jobs.

Kraft, which is majority-owned by Altria Group Inc., was hit by a $300-million increase in commodity costs in the fourth quarter.

Fourth-quarter profit fell to $628 million, or 37 cents a share, from $869 million, or 50 cents, a year earlier. Sales rose 7% to $8.78 billion.

Shares of Chicago-based Kraft fell 37 cents to $33.03 on the New York Stock Exchange before the earnings announcement.