Kellogg today (21 October) cut its full-year 2010 earnings target amid a “weaker performance” in some of the US giant’s “core” cereal markets.

The Frosties maker said it now expects full-year earnings per share to grow by 4-5%.

“The decline was driven by weaker performance in some of the Company’s core cereal markets, continued competitive intensity, and lingering impact of the cereal recall,” Kellogg said.

This is the second time Kellogg has reduced its guidance for the year. It originally forecast that earnings per share would grow by 11-13% for the year but then reducing its forecast to growth of 8-10% in July.

Kellogg is estimating that net sales will fall 4% on a reported basis and 2% on an internal basis for the third quarter of the year. Third-quarter operating profit is forecast to fall 5% on a reported basis and 3% on an internal basis.

For the full year, internal net sales are expected to be down approximately 1%, with internal operating profit expected to be around flat.

President and CEO David Mackay said: “2010 has clearly been a challenging year, and we are disappointed with our third quarter performance. We will discuss more details on our third quarter earnings conference call.”

The company is set to report its third quarter results on 2 November.