US: Kellogg reaffirms earnings amid cost pressure

By: just-food.com | 6 February 2008

Kellogg today (6 January) reaffirmed its full-year earnings guidance for 2008 amid continuing pressure on costs.

The US-based cereal giant predict full-year earnings to be US$2.92-US$2.97 per share, to include the impact of "significant" cost inflation.

David Mackay, Kellogg's chief executive officer, said: "We are confident in our ability to achieve our targets in 2008. We're investing in the future while facing continued cost pressure, which is a testament to the strength and resiliency of our business model and operating principles."

Last week, Kellogg posted a 6% rise in operating profit to US$1.9bn for 2007.

Rising sales at home and abroad offset higher commodity costs and increased marketing expenditure.

Currency fluctuations helped the result but, after stripping out the effect of exchange rates, operating profit was still up 3%. Revenues rose 8% to $11.8bn and increased by 5% on an organic basis.

Sectors: Baby food, Bakery, Chilled foods, Snacks

Companies: Kellogg