Commodity costs pinch Kellogg earnings

by Staff
Share This:
Search for similar articles by keyword: [Kellogg], [Cereal], [Snack]

BATTLE CREEK, MICH. – Rising commodity costs hurt first-quarter earnings at Kellogg Co., which reported a 2% decline in net income despite a rise in comparable sales.

For the quarter ended March 30, the company had income of $311 million, equal to 86c per share on the common stock, which compared with $351 million, or 98c per share, in the same period a year ago. Sales for the quarter were $3,861 million, up 12% from $3,440 million during the same quarter of the prior year.

The U.S. Morning Foods segment had an operating profit of $163 million, up from $153 million during the same period a year ago. Sales for the segment were $911 million, up from $897 million during the quarter a year before.

The U.S. Snacks segment had an operating profit of $106 million, down from $123 million during the same quarter of the prior year. The segment had sales of $901 million, up from $786 million during the same period of the previous year.

The U.S. Specialty Channels segment had an operating profit of $78 million, up from $71 million during the same quarter of the previous year. Sales for the segment were $379 million, up from $348 million during the quarter a year before.

“Results in the first quarter were broadly as we expected, and we’re pleased to have a solid start to the year,” said John Bryant, president and chief executive officer. “We saw good comparable revenue growth in many regions around the world, and the Pringles business continued to post strong results. As a result, we’re also pleased to report that we’re on-track to meet our guidance for the full-year.”
Add a Comment
We welcome your thoughtful comments. Please comply with our Community rules.








The views expressed in the comments section of Baking Business News do not reflect those of Baking Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.