Kellogg Co.'s first-quarter net income fell 12 percent as the world's biggest cereal maker dealt with higher ingredient costs and spent more on marketing and new products.

Kellogg shares fell $1.04 to $56.40 in premarket trading.

The maker of Frosted Flakes and Special K earned $366 million, or $1 per share, for the period ended April 2. That's down from $418 million, or $1.09 per share, a year earlier.

Analysts predicted earnings of $1.04 per share.

Kellogg said the results don't fully reflect price increases it has made. It raised its full-year revenue outlook to an increase of 4 percent, expecting it will benefit from higher prices.

The cereal maker, like much of the industry, faces rising costs for ingredients and freight as prices for grain and fuel have both soared this year. In turn, it has tried to pass on some of the cost increases to its customers.

Revenue climbed 5 percent to $3.49 billion on sales increases in North America and overseas, surpassing Wall Street's $3.39 billion.

Kellogg still expects full-year earnings to climb in the low single-digits, implying earnings of $3.33 to $3.40 per share with no foreign exchange impact. Analysts expect $3.48 per share.