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Kellogg Reveals Disappointing 2013 Outlook, Shares Dip

Kellogg Cereal Boxes Supermarket 01


Kellogg (K) forecast slower-than-expected 2013 sales and earnings growth at an annual investor meeting on Thursday, a week after posting mixed quarterly results and racking up charges related to a massive cereal recall.

While Kellogg once again reaffirmed its fiscal 2012 guidance for net sales growth of between 2% and 3%, it continues to expect operating profit to decline by 4% and 6% due to a recall earlier this year of 2.8 million boxes of Mini-Wheats cereal.

For 2013, Kellogg is forecasting slower-than-expected earnings growth of between 5% and 7% on sales growth of 7%. Analysts in a Thomson Reuters poll are looking for next-year sales growth of 8% on EPS growth of 9%.

Shares of Kellogg fell more than 1.3% to $53.44 Thursday morning.

The Battle Creek, Mich.-based cereal maker last week reported stronger-than-expected third-quarter earnings of $296 million, or 82 cents a share, on a 12.3% increase in sales to $3.72 billion.

Last quarter’s results were driven by strong international and North America sales growth, partially offset by charges related to its acquisition of Pringles and the recall.

Follow Jennifer Booton on Twitter at @Jbooton