Snacks, specialty foods help boost Kellogg

by Staff
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BATTLE CREEK, MICH. — Growth in snacks and specialty foods propelled a 9% gain in net income at The Kellogg Co. during the second quarter.

For the quarter ended June 29, the company had income of $352 million, equal to 96c per share on the common stock, which compared with $324 million, or 91c per share, during the same quarter of the previous year. Sales for the quarter were $3,714 million, up 7% from $3,474 million.

The U.S. Morning Foods segment posted an operating profit of $180 million, up 1% from $178 million during the same quarter of the previous year. Sales for the segment were $863 million, down 3% from $892 million.

Within the U.S. Snacks segment, operating profit totaled $130 million, up 7% from $121 million during the same quarter of the previous year. The segment had sales of $917 million, up 8% from $850 million.

The U.S. Specialty segment had an operating profit of $62 million, up 11% from $56 million during the same quarter of the previous year. The segment had sales of $272 million, up 8% from $252 million.

For the six months ended June 29 the company as a whole saw income decline 2% to $663 million, or $1.82 per share, which compared with $675 million, or $1.89 per share, during the same period of the previous year. Sales for the segment were $7,575 million, up 10% from $6,914 million.

“While sales growth has been slower than we anticipated in developed markets, particularly the U.S., the work we have been doing on our cost base has enabled us to offset the impact,” said John Bryant, president and chief executive officer. “In addition, we have now owned Pringles for more than a year. The integration has gone very well, and we remain excited regarding the opportunities we see for future growth.”

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