Kellogg income rises on cost-savings, Pringles acquisition

by Staff
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BATTLE CREEK, MICH. — Income at Kellogg Co. increased 11% during 2012 as the result of improving revenue in North America, more brand investments and cost-saving efforts including supply-chain initiatives. The Pringles acquisition is also helping growth.

For the year ended Dec. 29, the company has an income of $961 million, equal to $2.68 per share on the common stock, which compared with an income of $866 million, equal to $2.39 per share, during the previous year. Sales for the year were $14,197 million, up 8% from $13,198 million during the previous year.

The U.S. Morning Foods and Kashi segment had an operating profit of $595 million, down 3% from $611 million during the previous year. Sales for the segment were $3,707 million, down 3% from $3,611 million during the previous year.

The U.S. Snacks segment had an operating profit of $469 million, up 7% from $437 million during the same period of the previous year. The segment had sales of $3,226 million, up 12% from $2,883 million during the same period of the previous year.

The U.S. Specialty Channels segment had an operating profit of $241 million, up 4% from $231 million during the previous year. The segment had sales of $1,121 million, up 11% from $1,008 million during the previous year.

For the fourth-quarter ended Dec. 29, the company had a loss of $32 million, which compared with a loss of $195 million during the same quarter of the previous year. During the quarter the company had sales of $3,563 million, up 18% from $3,015 million during the same quarter of the previous year. While the quarterly loss narrowed significantly from the previous year, the company said inflation and costs of goods sold contributed to the loss. Improvements in Latin America helped results in the quarter.

“Kellogg Company delivered strong performance in the fourth quarter, continuing the sequential improvement we’ve seen all year,” said John Bryant, president and chief executive officer. “We’ve met our goals for full-year internal sales, operating profit and earnings per share growth, and we made significant investment in future growth. In addition, the Pringles acquisition is an excellent strategic fit and provides significant opportunity in our snacks business across the globe.”
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