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Nabisco's Net Drops 32% Amid Expenses Related to Purchase by Philip Morris 

Nabisco Holdings Corp. posted a 32% drop in third-quarter net income on expenses related to its pending acquisition by Philip Morris Cos. When excluding these and other items, the food company's earnings topped Wall Street's expectations by a nickel a share.

Nabisco (NA), the top cookie and cracker maker in the U.S., said net income came to $78 million, or 29 cents a diluted share, compared with $114 million, or 43 cents share, in the year-earlier period. After stripping out items, earnings rose 38% to $108 million, or 40 cents a share, from $78 million, or 30 cents a share, a year earlier. Analysts polled by First Call/Thomson Financial expected profit, excluding items, of 35 cents a share.

The company said its latest results included expenses of about $30 million, or 11 cents a share, related to the pending sale of Nabisco to Philip Morris (MO) and the sale of Nabisco Group Holdings Corp. (NGH) to R.J. Reynolds Tobacco Holdings Inc. (RJR).

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