Kellogg Sales Miss Estimates on Low Cereal, Snacks Demand

StocksReuters

Kellogg, the maker of Corn Flakes and Rice Krispies, reported a bigger-than-expected drop in quarterly net sales as demand for its snacks and cereals remained weak in the United States.

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Sales in the company's U.S. snacks business — its biggest —fell 1.5 percent, while sales in the U.S. morning foods business, which includes cereals, fell 2.6 percent.

Sales in both businesses fell for the third straight quarter.

Net income attributable to the company fell to $205 million, or 58 cents per share, in the third quarter ended Oct. 3, from $224 million, or 62 cents per share, a year earlier.

Excluding items, the company earned 85 cents per share.

Net sales fell 8.5 percent to $3.33 billion, the eighth decline in nine quarters.

Analysts on average had expected earnings of 84 cents per share on revenue of $3.42 billion, according to Thomson Reuters I/B/E/S.

Up to Monday's close, Kellogg's shares had risen 8 percent this year.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Maju Samuel)