Northfield, Ill.-based Kraft Foods Inc. reported solid top-line and bottom-line results for 2008 in the second year of its three-year turnaround plan.rnOperating income growth at the No. 2 dairy processor exposed the benefits of further investments in brand building and improved cost management, the company explained. This, combined with better working capital management, resulted in strong cash flow.rnSpecifically, the cheese category delivered an increase in profit. Organic net revenues grew 3.3%, reflecting the impact of cost-driven pricing actions taken throughout the year and the associated decline in volume, the company reported. Operating income more than doubled versus a weak fourth quarter in the prior year as the company better aligned pricing with input costs. During the quarter, pricing more than offset the impact of lower volume and unfavorable product mix as the benefits of past pricing actions caught up to the escalation of costs experienced during the year, according to Krafts investor relations reports.
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