Kellogg trims sales view on slower U.S. market
Kellogg Co trimmed its 2013 sales forecast on Thursday, citing weaker growth in the United States and the stronger dollar.
The maker of Corn Flakes cereal and Eggo waffles stood by its full-year earnings outlook, excluding the impact of currency and one-time items, despite reporting stronger-than-expected results for the second quarter.
Net income rose to $352 million, or 96 cents per share, in the quarter from $324 million, or 90 cents per share, a year earlier.
Excluding accounting adjustments and integration costs from the acquisition of Pringles, earnings were $1.00 per share. On that basis, analysts on average were expecting 97 cents, according to Thomson Reuters I/B/E/S.
Net sales rose to $3.71 billion from $3.47 billion.
The company said it expected full-year sales to rise 5 percent, down from a prior outlook for a 7 percent increase. It cited slower-than-expected growth in developed markets, particularly the United States, and the impact of the stronger U.S. dollar.
Kellogg affirmed its forecast for full-year earnings per share of $3.84 to $3.93, excluding one-time items and currency fluctuations.
Currency is now likely to take a 9 cent-per-share bite out of full-year earnings, Kellogg said, much more than its previous estimate of a 2 cent impact.
Shares of Kellogg were down 0.4 percent at $66 in trading before the market opened.
(This story corrects to 'stronger dollar' from 'weaker dollar' in 6th paragraph)
(Reporting by Martinne Geller in New York; Editing by Jeffrey Benkoe and Lisa Von Ahn)