Kellogg

(K) - Get Report

crackled Thursday after hitting first-quarter targets, guiding the full year higher and boosting its dividend.

The Battle Creek, Mich., cereal giant earned $255 million, or 61 cents a share, up from the year-ago $220 million, or 53 cents a share. Revenue rose to $2.57 billion from the year-earlier $2.39 billion.

The company guided toward the top end of its previous 2005 earnings range of $2.28 to $2.32 a share, saying cost-cutting was going better than expected.

The company also said it would boost its dividend 10% next quarter. Kellogg paid out 25.25 cents in the latest period.

Kellogg rose a dime early Thursday to $42.90.