BATTLE CREEK, MICH. — The Kellogg Co. is lowering its full-year 2010 financial guidance as a result of weaker-than-expected performance in some core cereal markets, ongoing competitive intensity and the continuing impact of the cereal recall. Following the announcement, the company’s shares fell $1.06, or 2.2%, to $48.96 in pre-market trading.

“Two-thousand and ten has clearly been a challenging year, and we are disappointed with our third-quarter performance,” said David Mackay, president and chief executive officer.

The company expected a net sales decline of 4% on reported basis and 2% on an internal basis. Third-quarter operating profit is expected to decrease 5% on a reported basis and 3% on an internal basis. Internal operating profit is expected to be about flat. Third-quarter earnings per share are estimated to be down 4% on a reported basis or 2% on a currency-neutral basis.

Overall, the company has lowered its full-year guidance with currency-neutral earnings per share growth now expected to be in the 4 to 5% range.

Kellogg is expected to release its third-quarter results on Nov. 2.