Tuesday, January 30, 2007

Kellogg goes...soggy...

Facing what is becoming a large issue for many employers, today's news reports that Kellogg is facing a bad fourth quarter:

GRAND RAPIDS, Mich. (AP) — Cereal maker Kellogg Co. on Tuesday said fourth-quarter net income fell 5 percent, weighed down by increased costs for commodities, fuel and benefits.

The maker of Frosted Flakes, Rice Krispies and Eggo waffles said its profit totaled $182.4 million, or 45 cents per share, for the three months ended Dec. 30 versus $192.4 million, or 47 cents per share, in the prior-year period.

Revenue grew 8 percent to $2.58 billion from $2.39 billion during the year-ago quarter.

Analysts polled by Thomson Financial expected earnings of 46 cents on revenue of $2.53 billion.

The Battle Creek company said increased fuel, energy, commodity and benefit costs weighed on its results. Fourth-quarter results were lowered by 8 cents per share for investment in upfront costs, Kellogg said.


They are still expecting a modest increase in sales for 2007 which is good news...No news on General Mills though, which could have an impact on this area since we have a factory here that has ups and downs as far as employment numbers.

No comments: