Kellogg Earnings Down 31 Percent
BATTLE CREEK, Mich. (AP) _ Kellogg Co.’s third quarter earnings dropped more than 31 percent because of softness in the cereal market and the cost of investments designed to strengthen its international position.
Wall Street anticipated the decline. Earlier this month, the company warned its earnings would fall this year because of the global economic crisis.
Kellogg earned $141.9 million, or 35 cents per diluted share, in the three months ended Sept. 30 compared to $207.2 million, or 50 cents per share, a year earlier.
The results matched expectations of analysts surveyed by First Call Corp.
In morning trading on the New York Stock Exchange, Kellogg shares were up 37 1/2 cents a share at $32.56 1/4.
Sales edged up to $1.81 billion from $1.80 billion a year ago.
Arnold G. Langbo, chairman and chief executive, said the third-quarter results reflect the costs of increased marketing, accelerated product development and other initiatives designed to restore growth to the cereal category.
For the first nine months, Kellogg earned $455.8 million, or $1.12 a share, down from $531.4 million, or $1.28 a share a year ago.
Revenue slipped to $5.16 billion from $5.21 billion a year ago.