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Mondelez Cuts Sales Growth Forecast as Cost Cuts Continue


Mondelez (MDLZ) shares are trading lower on Wednesday after the packaged food maker announced it was cutting its sales growth. The maker of Cadbury candy, Oreo cookies and Ritz snacks says it expects sales to grow between 2 and 2.5 percent – that’s down from an original estimate of 3 percent. Earnings came in at $0.40 per share – a penny higher than analyst estimates. Revenue just missed expectations at $8.4 billion, down from $8.6 billion a year ago. Mondelez Chairman and CEO, Irene Rosenfeld, said, “We're making good progress on the strategic and cost-reduction actions we announced in May to strengthen our core snacking business, simplify our operations and enhance our margins.” The company’s vice president and CFO David Brearton said he expects a continued challenging operating environment moving forward. TheStreet’s Julie Cerullo reports from New York.