US breakfast cereal producer Kellogg has increased its profit outlook.

Citing healthier than predicted sales growth and lower taxes, the company said it was confident about its 2004 outlook. It estimates 2004 earnings towards the upper end of US$2.05 to 2.09 per share, reported Dow Jones.,

Kellogg estimated it will incur seven cents to eight cents a share in write-offs and upfront costs for the fourth quarter related to such projects as the closing of a snacks plant in Australia, the outsourcing of a US repackaging operation and the closing of one of the company's cereal plants in Argentina.

The company is planning to repurchase up to $300m of common stock next year.