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(K) - Get Kellogg Company Report

quarterly earnings rose 9% from a year ago, paced by strong sales of cereals and snacks at home and abroad.

The company earned $259.0 million, or 62 cents a share, in the quarter, compared with $237.4 million, or 57 cents a share, last year. Sales rose 8% from a year ago to $2.59 billion. Analysts surveyed by Thomson First Call were forecasting earnings of 62 cents a share on sales of $2.51 billion in the 2005 second quarter.

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For all of 2005, Kellogg now expects to earn $2.30 to $2.33 a share, including costs and writeoffs totaling 15 cents a share. Analysts surveyed by Thomson First Call were expecting $2.37 a share for the year.

"Gross margin and operating leverage provide us the opportunity to effectively market increased levels of innovation and drive growth for the remainder of 2005 and into next year," the company said.

In the second quarter, North America retail cereal sales rose 10% from a year ago thanks to "successful brand-building campaigns" and new products. North American retail snacks had internal net sales growth of 8%. Internationally, net sales rose 7% overall, and 3% excluding currency translation.

By region, internal sales growth was 8% in Latin America, 1% in Europe, and 8% in Asia Pacific.