Kellogg income declines 12% in quarter

by Staff
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BATTLE CREEK, MICH. — Rising costs and weakness in Europe contributed to a 12% decline in income during the second quarter at Kellogg Co.

For the quarter ended June 30, the company had income of $301 million, equal to 84c per share on the common stock, which compared with $343 million, or 94c per share, during the same quarter of the previous year. Sales for the quarter were $3,474 million, up 3% from $3,386 million during the same quarter of the previous year.

“We are pleased that our top-line performance improved in the second quarter,” said John Bryant, president and chief executive officer. “This year, we have taken strategic actions that have also made a difference in the near term. Last year we outlined a plan that focused the company on driving our two core growth platforms: cereal and snacks. The acquisition of the Pringles business takes us a long way toward achieving our goals and provides us with significant potential for future growth.”

For the six months ended June 30, the company’s income declined 7% to $659 million, or $1.85 per share, which compared with $709 million, or $1.95 per share, during the same period of the previous year. Sales for the six months were $6,914 million, up slightly from $6,871 million.

The company said it expects full-year earnings per share to be in the range of $3.18 and $3.30 per share with internal net sales growth of 2% to 3%.

“We’ve taken significant actions in the first half of the year, and our second-quarter performance reflects some of the improvement that has resulted,” Mr. Bryant said. “This, and the inclusion of the Pringles business, has given us improved visibility in our outlook, and we remain optimistic regarding the significant, long-term potential of our businesses.”

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