This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kellogg Company Reports Earnings Per Share At The High End Of Guidance For 2012 And Reaffirms Guidance For 2013 Growth

Kellogg International's full-year reported operating profit decreased by 14.2 percent and internal operating profit decreased by 16.4 percent. Kellogg International's fourth quarter reported operating profit declined by 4.7 percent and internal profit declined by 21.9 percent. Latin America's internal operating profit increased by 19.7 percent in the fourth quarter due to strong sales growth and a relatively easier comparison to the fourth quarter of last year; included in the growth was the impact of higher commodity costs. Europe's fourth-quarter internal operating profit decreased by 7.7 percent due to significant cost inflation and a continued difficult operating environment.  Asia Pacific's internal operating profit decreased by 72.3 percent in the fourth quarter as the result of up-front costs associated with the closure of a plant in Australia, a double-digit increase in the rate of investment in brand building, and increased cost inflation.

Interest and Tax

Kellogg's interest expense totaled $66 million in the fourth quarter and was $261 million for the year. Including the impact of the change in accounting for pension and post-retirement benefit plans, the reported effective tax rate was 53 percent for the fourth quarter and 27.4 percent for the full year.  Excluding the mark-to-market adjustment, the effective tax rate was 28.9 percent for the year, consistent with guidance.

Cash flow

Cash flow, a non-GAAP measure defined as cash from operating activities less capital expenditures, was slightly more than $1.2 billion for the full year.  Kellogg repurchased approximately $63 million of shares during the year, all in the first quarter.    

Kellogg Updates 2013 Earnings Guidance

The Company reaffirmed its guidance for reported net sales growth, which is expected to increase by approximately seven percent in 2013. Kellogg expects full-year reported operating profit to increase at a rate slightly faster than the rate of earnings-per-share growth. Full-year reported earnings per share are anticipated to grow between five and seven percent. Guidance for both operating profit and earnings per share excludes the impact of mark-to-market adjustments. Cash flow is expected to be in a range between $1.1 billion and $1.2 billion.

4 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs