Cereal maker Kellogg Co. announced that its third-quarter earnings fell around 6 percent on weaker sales of its cereals worldwide.
Net profit at the biggest cereal maker fell to $338 million, or 90 cents per share, in the last quarter. That amount is 6 percent lower than the $361 million profit the company reported in the same quarter last year.
In addition, the Battle Creek, Mich.-based company lowered 2010 earnings forecast, due to weak projected demand for cereal and increased competition and price wars in the market.
Sales fell across the board in the North American and European markets. Sales in Latin America rose 5 percent, and sales in Asia increased by 2 percent, the company said.
“We are disappointed with our third-quarter performance, which was due to softness in our businesses as well as a tough operating and deflationary environment driven by intense competition,” said David Mackay, Kellogg’s CEO in a statement. “2010 has been a challenging year, and as a result, two weeks ago, we lowered our full-year guidance to reflect the operating challenges.”
Kellogg makes the Special K and Frosted Flakes brands of cereal, as well as the Pop-Tart and Keebler brands of snacks.
Net profit at the biggest cereal maker fell to $338 million, or 90 cents per share, in the last quarter. That amount is 6 percent lower than the $361 million profit the company reported in the same quarter last year.
In addition, the Battle Creek, Mich.-based company lowered 2010 earnings forecast, due to weak projected demand for cereal and increased competition and price wars in the market.
Sales fell across the board in the North American and European markets. Sales in Latin America rose 5 percent, and sales in Asia increased by 2 percent, the company said.
“We are disappointed with our third-quarter performance, which was due to softness in our businesses as well as a tough operating and deflationary environment driven by intense competition,” said David Mackay, Kellogg’s CEO in a statement. “2010 has been a challenging year, and as a result, two weeks ago, we lowered our full-year guidance to reflect the operating challenges.”
Kellogg makes the Special K and Frosted Flakes brands of cereal, as well as the Pop-Tart and Keebler brands of snacks.
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