• Chicago Tribune, Thursday, November 3, 2011 10 AM

Kraft reported higher third-quarter sales and earnings Thursday, citing price hikes and strong sales of new products.

Sales grew 11.5% to $13.23 billion, and net earnings grew 22% to $927 million, or 52 cents per share. Income from operations grew 12% to $1.7 billion, or 58 cents per share. The Velveeta Cheesy Skillets meals were big, as were  Lunchables, which posted record sales. Kraft said Mio's first year of sales is expected to surpass the $100 million benchmark.

Kraft CEO Irene Rosenfeld said the company passed through significant price increases in response to soaring ingredient costs. "Consumers are responding favorably to our investments in new products and better, more effective advertising," she said. "This has been a powerful combination," and allowed the company to pass higher costs on to consumers.

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