2006 Financial Highlights

2006 Financial Highlights Consolidated Results
(in millions, except per share data)
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(in millions, except per share data)

2006

 

2005

% Change *

Volume (in pounds)

 

18,251

 

19,212

(5.0%)

Net revenues

$ 34,356

$ 34,113

0.7%

Operating income

 

4,526

 

4,752

(4.8%)

Earnings from continuing operations

3,060

 

2,904

5.4%

Net earnings

 

3,060

 

2,632

16.3%

Diluted earnings per share:

Continuing operations

1.85

 

1.72

7.6%

Net earnings

 

1.85

 

1.55

19.4%

Results by Business Segment

North America

Beverages

Net revenues

$  3,088

$  3,056

1.0%

Operating companies income**

205

 

463

(55.7%)

Cheese & Foodservice

Net revenues

 

6,078

 

6,244

(2.7%)

Operating companies income**

886

 

921

(3.8%)

Convenient Meals

Net revenues

 

4,863

 

4,719

3.1%

Operating companies income**

914

 

793

15.3%

Grocery

Net revenues

 

2,731

 

3,024

(9.7%)

Operating companies income**

919

 

724

26.9%

Snacks & Cereals

Net revenues

 

6,358

 

6,250

1.7%

Operating companies income**

829

 

930

(10.9%)

Total North America

Net revenues

$ 23,118

$ 23,293

(0.8%)

Operating companies income**

3,753

 

3,831

(2.0%)

International

European Union

Net revenues

$  6,672

$  6,714

(0.6%)

Operating companies income**

548

 

722

(24.1%)

Developing Markets, Oceania & North Asia

Net revenues

 

4,566

 

4,106

11.2%

Operating companies income**

416

 

400

4.0%

Total International

Net revenues

$ 11,238

$ 10,820

3.9%

Operating companies income**

964

 

1,122

(14.1%)

*The company's 2005 results include an extra shipping week versus 2006. The company estimates that this week positively impacts volume, net revenues, and operating income growth rates by approximately 2pp.

**Kraft's management reviews operating companies income, which is defined as operating income before general corporate expenses and amortization of intangibles, to evaluate segment performance and allocate resources. For a reconciliation of operating companies income to operating income, see Note 14. Segment Reporting.