News Summary: Nestle sees challenges ahead
Swiss food giant Nestle reports full-year $11.55 billion net profit, predicts challenging 2013
BIG PROFIT: Nestle SA, the world's biggest food and drinks maker, predicted another challenging year ahead but overcame tough global economic conditions to post a full-year net profit Thursday of 10.6 billion Swiss francs ($11.55 billion) for 2012.
THE BACKGROUND: This year began with an improved economic climate but a still-uncertain recovery, particularly in Europe where officials remain anxious whether reforms will prevent failed banks from adding to government debt through bailout.
WHY IT MATTERS: Nestle is a major buyer of food commodities such as wheat, sugar, milk and coffee and its results are a good indicator of consumer demand in various regions of the world and the health of the global economy.
