BATTLE CREEK, Mich. (
beat second-quarter profit and sales expectations on strong revenue growth and the benefit of higher selling prices, but forecast weaker-than-expected 2011 profit and sales.
Kellogg said early Thursday it expects full-year sales to grow between 4% and 5% to a range of $12.9 billion and $13 billion, and expects to earn between $3.33 and $3.40 a share. The outlook was weaker than analysts had been expecting. The consensus was for Kellogg to earn $3.49 a share on revenue of $13.18 billion for the year.
The weak forecast sent Kellogg shares 0.8% lower in premarket trading Thursday despite the cereal and food maker's earnings beat.
For the second quarter, Kellogg grew its profit by 13.6% to $343 million, or 94 cents a share, from year-earlier earnings of $302 million, or 79 cents a share.
Revenue rose 10.8% to $3.9 billion from $3.06 billion.
Analysts had expected Kellogg to book a second-quarter profit of $330.7 million, or 91 cents a share, on revenue of $3.3 billion.
Written by Miriam Marcus Reimer in New York.
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