Kellogg Profit Declines Less Than Expected

Kellogg Co.'s stock edged up slightly in premarket trade Tuesday, after the cereal, snacks and frozen foods company beat first-quarter profit that beat expectations, while sales matched estimates. For the quarter ended April 4, earnings declined to $227 million, or 64 cents a share, from $406 million, or $1.12 a share, in the year-earlier period. Excluding one-time items, such as restructuring costs, adjusted earnings per share came in at 98 cents, above the FactSet consensus of 91 cents. Adjusted revenue fell 5% to $3.55 billion, in line with the FactSet consensus, amid declines in each of its business segments. The company said currency movements negatively affected sales by 4.7 percentage points. Kellogg affirmed its full-year outlook for sales and earnings on a currency neutral basis. The stock, up 0.1% ahead of the open, has lost 2% year to date, while the S&P 500 has gained 2.7%.