Kellogg profit jumps, sticks to full-year view

Kellogg profit jumps, sticks to full-year view
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First Published: Thu, Apr 29 2010. 06 52 PM IST
Updated: Thu, Apr 29 2010. 06 52 PM IST
Chicago: Kellogg Co, the world’s largest cereal maker, posted a better-than-expected jump in quarterly profit as international sales and cost-cutting measures helped offset tepid US cereal sales growth.
But the company also stood by its full-year earnings forecast, saying it will spend more on measures such as advertising and product development.
The maker of Corn Flakes and Keebler cookies said on Thursday that profit was $418 million, or $1.09 a share in the first quarter, compared with $321 million, or 84 cents a share, a year earlier.
Analysts on average forecast 94 cents a share, according to Thomson Reuters.
Sales rose 4.7% to $3.32 billion. Analysts on average forecast $3.29 billion.
North American sales rose 3%, with retail cereal sales up about 0.5%.
International sales rose 9%, though 7%age points of that increase was due to currency fluctuation.
Like many food companies, Kellogg has been cutting costs to boost profits, while sales have been pressured by intense competition in some categories.
For the year, the company stood by its forecast calling for earnings per share to rise 11% to 13%, excluding the impact of currency fluctuations.
The company also said its board of directors approved a $2.5 billion, three-year share repurchase plan.
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First Published: Thu, Apr 29 2010. 06 52 PM IST