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Shares of Kellogg (K) - Get Free Report were higher Tuesday after the cereals and snacks maker reported that third-quarter net income fell 34%, while adjusted earnings beat analysts' expectations.

Earnings per share at the Battle Creek, Mich., company were 72 cents a share compared with $1.09 in the year-earlier quarter. Currency-neutral adjusted earnings were $1.05 against $1.06.

Sales slipped 2.8% to $3.37 billion from $3.47 billion.

A survey of analysts by FactSet was expecting earnings of 85 cents a share, or an adjusted 91 cents, on sales of $3.35 billion.

The sales number reflected the late-July sale of certain cookie and snack businesses to Italy's Ferrero Group plus negative foreign-currency translations, Kellogg reported. Organic sales rose more than 2%.

"Our reshaped portfolio is doing what it is intended to do, focusing on our higher growth categories and markets," Chairman and Chief Executive Steve Cahillane said in a statement.

"We have revitalized key brands through improved brand-building and enhanced innovation. And as we move past our heaviest investments and costs, we are on track for delivering gradual improvement in profitability."

Kellogg said North America organic growth was backed by strength in brands including Pringles potato chips, Cheez-It snacks, Rice Krispies Treats and Pop-Tarts.

Also in North America, within its frozen-food section, the company cited Morningstar Farms vegetarian foods. Cereal net sales and consumption declined.

Currency translations hurt net sales in the company's three non-U.S. regions: Europe, Latin America, and Asia-Pacific-Mideast-Africa.

Kellogg affirmed its full-year financial outlook. Currency-neutral adjusted earnings per share are expected to decline by about 10%. The company previously expected a drop of 10% to 11%. The difference is a lower expected tax rate and better-than-expected other income, Kellogg reported.

Net sales should grow 1% to 2% from the year earlier, Kellogg estimated.

Kellogg shares at last check were trading 4.2% higher at $63.65.

Through Monday the stock sat in the middle of its 52-week range of $51.34 to $72.02. In 2019 through Monday, Kellogg shares are up 7.1%.The dividend yields more than 3.7%.

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