Kellogg income up 2% on Pringles acquisition
BATTLE CREEK, MICH. — Boosted by benefits from the Pringles acquisition, income for the Kellogg Co. was up 2% during the third quarter.
For the quarter ended Sept. 29, the company had income of $296 million, equal to 83c per share on the common stock, which compared with income of $290 million, or 81c per share, during the same quarter of the previous year. The most recent quarter included approximately 4c per share of integration costs related to the acquisition of Pringles, as well as 6c per share in costs associated related to last month’s recall of approximately 3.2 million boxes of Mini-Wheats in the United States, Canada and Mexico due to possible fragments of metal mesh that may have gotten into the products.
Sales for the quarter were $3,720 million, up 12% from $3,312 million.
“We’re pleased with the improving trends in our underlying performance, which is in-line with our expectations and includes strong revenue growth in many of our businesses,” said John Bryant, president and chief executive officer. “We’re also pleased that the Pringles business performed better during the quarter than we had expected. While it’s early, we remain optimistic regarding the potential of this iconic brand.”
The U.S. Snacks segment had an operating profit of $116 million, up 23% from $94 million during the same quarter of the previous year. The segment had sales of $865 million, up 19% from $727 million.
The U.S. Morning Foods and Kashi segment posted operating profit of $137 million, up 2% from $134 million during the same quarter of the previous year. The segment had sales of $946 million, up 5% from $897 million.
For the nine months ended Sept. 29, net income at Kellogg was $955 million, or $2.67 per share, down 4% from $999 million, or $2.75 per share, during the same period of the previous year. Sales for the period were $10,634 million, up 4% from $10,183 million.
The company also affirmed its full-year 2012 guidance for earnings per share in the range of $3.18 and $3.30 per share.