Kellogg Q3 Profit Down

31-Oct-2014 - USA

Kellogg Co.(K) reported that its net income attributable to company for the third quarter 2014 were $224 million or $0.62 per share, down from $326 million or $0.90 per share in the third quarter of last year. The latest quarter earnings per share included an impact from mark-to-market of $0.11 per share, $0.19 per share of costs associated with Project K, and approximately

$0.02 per share of integration costs related to the acquisition of Pringles. Comparable earnings for the quarter were $0.94 per share, down form $0.97 in the year ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.92 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter dropped to $3.639 billion from $3.716 billion last year. Wall Street expected revenues of $3.69 billion.

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The company reiterated its currency-neutral guidance for the full year of 2014. Internal net sales are expected to decline by between one and two percent. Underlying internal operating profit growth is expected to decline by between one and three percent.

Currency-neutral comparable earnings per share are expected to be in a range between a decline of one percent and an increase of one percent.

Integration costs associated with the acquisition of the Pringles business are still expected to be in a range between $0.07 and $0.09 per share. Costs associated with Project K are still expected to be in a range between $0.60 and $0.65 per share.

As a result, earnings excluding the impact of mark-to-market accounting, integration costs, Project K and other items impacting comparability are anticipated to be between $3.81 and $3.89 per share. This year's 53rd week is still expected to add approximately $0.07 per share to earnings and currency translation is now expected to have no impact on earnings.

As a result, the company expects a full-year earnings range including the impact of the 53rd week and currency translation of between $3.88 and $3.96 per share. Analysts expect annual earnings of $3.91 per share. (dpa)

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