Mondelez Sales Growth Suffers, But Cost-Cutting Boosts Profit

Snack company Mondelez has lowered its sales growth and earnings per share projections for 2014, citing the negative second quarter impact of prices hikes. The company’s stock dropped two percent when it announced sales for the quarter would not meet Wall Street expectations. Cost slashing to offset weaker sales – an industry trend – helped push profits up by 3.5 percent. The company recently upped its prices to offset the rising costs of ingredients like cocoa and dairy products.