Keebler Foods

( KBL) reported better-than-expected earnings for the latest third quarter, which the company attributed to increased margins, strong sales and new products.

The cookie and cracker maker reported net income for the latest third quarter of $41 million, or 46 cents a diluted share, compared with $32.1 million, or 37 cents a share, in the same period a year ago. Seven analysts expected the company to earn 43 cents a share for the quarter, according to

First Call/Thomson Financial


Sales for the quarter came in at $642.2 million, up 4.3% from $615.8 million a year ago.

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Last week, Keebler agreed to be acquired by cereal giant


(K) - Get Report

for $42 a share.

Shares of Keebler were recently unchanged at $40.50 in

New York Stock Exchange