Tags: US | Earns | Kellogg

Kellogg's Profit Rises on Cost Cuts, Higher Snack Sales

Thursday, 29 Apr 2010 08:36 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Cost-cutting and higher revenue from snacks boosted food maker Kellogg Co.'s fiscal first-quarter profit 30 percent, the company said Thursday.

The maker of Frosted Flakes cereal, Pop Tarts and other popular foods said profit rose to $418 million, or $1.09 per share, during the three months that ended April 3. That compares with $321 million, or 84 cents per share a year ago.

The results beat the average forecast for profit of 94 cents per share from analysts surveyed by Thomson Reuters.

Revenue rose 5 percent to $3.32 billion from $3.17 billion. North American revenue rose 3 percent, helped by higher retail snacks sales.

But sales of frozen and specialty snack revenue in North America fell 3 percent, hurt by a disruption in production of Eggo waffles after storms closed an Atlanta factory and repair work indefinitely closed several lines at a Tennessee plant.

International sales rose 9 percent, including increases in North America and Asia Pacific but a drop in Latin America as a supply disruption in Brazil due to rain damage offset a revenue increase in Mexico.

The company reaffirmed its forecast that its full-year profit would rise 11 percent to 13 percent, excluding any effect of the dollar's strength or weakness. It expects sales to rise 2 percent to 3 percent.

Kellogg also said it will start a $2.5 billion three-year share repurchase program. Such buybacks typically aim to boost a company's stock price.

Revenue growth is slowing for many food makers after a period of major growth during the recession, when consumers started eating at home more to save money. Kellogg has cut costs and boosted ad spending to offset this.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved