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.
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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