Kellogg 2Q net income drops, on rising costs, European weakness, Pop-Tarts help lift revenue - InfoNews

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Kellogg 2Q net income drops, on rising costs, European weakness, Pop-Tarts help lift revenue

In this July 26, 2010 photo, various Kellogg brand cereals are displayed in Miami. THE CANADIAN PRESS/AP, Wilfredo Lee
August 02, 2012 - 8:50 AM

NEW YORK, N.Y. - Rising costs and weakness in Europe pulled down Kellogg's second-quarter net income, but the breakfast giant's revenue rose thanks to sales of Pop-Tarts and strength in North America.

For the three months ended June 30, the maker of Frosted Flakes cereal and other products earned $301 million, or 84 cents per share. That's down 12 per cent from $343 million, or 94 cents per share, a year earlier.

Analysts expected earnings of 85 cents per share.

Revenue for the Battle Creek, Mich., company edged up 2 per cent to $3.47 billion. That beat Wall Street's estimate of $3.38 billion.

Kellogg Co. currently gets most of its revenue from North America.

It reaffirmed its full-year earnings outlook of $3.18 to $3.30 per share. Analysts expect $3.34 per share. Their estimates usually exclude one-time items.

News from © The Associated Press, 2012
The Associated Press

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