BATTLE CREEK, MICH. — Higher prices helped offset higher input costs and lead to a 14% increase in net income during the second quarter at Kellogg Co.
For the quarter ended July 2, the company had income of $343 million, equal to 94c per share on the common stock, which compared with $302 million, or 80c per share, during the same quarter of the previous year. Sales for the quarter were $3,386 million, up 11% from $3,062 million during the same quarter of the previous year.
“We continue to build momentum as demonstrated by our solid first-half top-line results,” said John Bryant, president and chief executive officer. “During the second quarter we benefited from improved net price realization and were pleased with the performance of our strong innovation. As we look to the back half of 2011, we expect continued sales growth driven by price and mix and are confident in our innovation line-up and commercial plans.”
The North America segment had an operating profit of $406 million during the quarter, up 12% from $364 million during the same quarter of the previous year. The segment had sales of $2,231 million, up 8% from $2,064 million during the same quarter of the previous year.
For the six months ended July 2, the company as a whole had income of $709 million, or $1.95 per share, down 2% from $720 million, or $1.89 per share, during the same period of the previous year. Sales for the period were $6,871 million, up 8% from $6,380 million.
The company also reaffirmed its full-year guidance of earnings per share in the range of $3.33 to $3.40.