Kellogg Cuts Full-Year Guidance - TheStreet


NEW YORK (TheStreet) -- Kellogg (K) - Get Report has lowered its full-year earnings per share growth guidance to the range of 8% to 10% vs. 11% to 13% previously, after reporting lower-than-expected earnings and a fall in revenue for the second quarter; reflecting the impact of a cereal recall and challenging business environment.

The company expects 2010 internal net sales growth to be in the flat to 1% range.

For the second quarter, Kellogg had earnings of $302 million, a 15% decline over the same quarter a year ago. Second-quarter reported earnings per share decreased 14% to 79 cents and 11% on a currency-neutral basis

The estimated impact of a cereal recall, including lost sales, reduced earnings per share by approximately 10 cents in the quarter and will reduce earnings per share by about 12 cents for the full year.

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Net sales for the quarter fell to $3.062 billion vs. $3.229 billion a year ago.

Analysts on average were expecting earnings of 94 cents on revenue of $3.29 billion.

Shares of Kellogg stock have fallen 4.7% to $49.10 in pre-market trading.

-- Reported by Andrea Tse in New York

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