The FINANCIAL -- Sara Lee, the packaged-goods company, posted higher quarterly earnings thanks to lower costs.  The company raised its full-year earnings forecast.

Revenue in the latest quarter decreased 7.4% to $2.59 billion. Excluding divestitures and foreign-exchange effects, revenue was off 3.3%, The Wall Street Journal reported. For the quarter ended Sept. 26, Sara Lee reported a profit of $284 million, or 41 cents a share, up from $230 million, or 32 cents, a year earlier. Excluding items such as expenses related to asset sales, earnings rose to 38 cents from 31 cents.

Earnings at Sara Lee's North American retail segment jumped 45%, primarily on lower input costs, though volumes weakened, according to the same source. Gross margin rose to 37.4% from 34.9% on the cost cuts.

Earnings were boosted by 19 cent-a-share contingency payment related to the 1999 sale of the company's European tobacco business, the last such payment the company is due to receive, Reuters informs. Sara Lee announced in September that it would sell its personal-care brands such as Sanex and Brylcreem to Unilever Group (ULVR.L) for $1.87 billion. It also said then it had seen significant interest in its household products business, which includes Ambi Pur air freshener and Kiwi shoe polish.

Looking ahead, the company said it now expects fiscal 2010 earnings in the range of $1.12 to $1.18 a share, The Wall Street Journal reported. It expects to post a full-year profit of 90 cents to 96 cents a share, up 6 cents from its previous forecast.

Analysts surveyed by FactSet are expecting 91 cents a share, according to Market Watch. Sara Lee shares have gained 21% this year.

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